High Yields, Fast throughput, Solid Liquidity: Overview of the top DeFi Ecosystem Fantom
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High Yields, Fast throughput, Solid Liquidity: Overview of the top DeFi Ecosystem Fantom
New Yield Opportunities & Exciting Projects: Exclusive Breakdown of the Fantom Ecosystem
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DeFi Slate Fam:
The Fantom Ecosystem is bustling with activity! With the Fantom Developer Conference this week and the two-month cliff for the first batch of approved projects ending soon, it’s no surprise that projects, users and capital are eager for the upcoming yield incentives set to drop soon. With that, read on to get an overview of the Fantom Ecosystem as early as now! From the best yield opportunities to new, under-the-radar projects, we got you!
Enjoy!
- Wassie
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The Fantom Ecosystem
Introduction
It’s been nearly 2 months since the Fantom Foundation announced its 370M Fantom Incentive Program. Since the announcement, we’ve seen tons of capital flow into the ecosystWem propelling FTM’s Total Value Locked (TVL) from $500M before the announcement to $4.94B (~10x) as of writing.
However, with the way incentive programs are structured and because of the current multi chain narrative, users tend to flock towards other, newer chains in pursuit of higher yields. This causes a lot of value to leak out of the ecosystem. In contrast to other chains, Fantom’s incentive program differs as protocols only continue to receive incentives as long as they are able to maintain a certain time-weighted average TVL. This ensures that both builders and users remain aligned with their respective protocols for the long term.
That being said, there are 2 main catalysts for the FTM ecosystem. The first being the two-month cliff for the first batch of approved projects ending soon which means that rewards are scheduled to go live starting next month. The second being the Fantom Developer Conference (Fantom DC) happening this week where builders and innovators will be gathering to push forward the development of the Fantom Ecosystem.
With all this, getting an overview of the Fantom Ecosystem as early as now could help one position themselves to maximize the opportunities that come later on.
Fantom TVL from DeFiLlama
Main Opportunities
Similar to other chains, it’s no surprise that native projects are headlining the TVL Rankings for FTM. Compared to their larger, more-established, multichain counterparts, these native protocols are able to capture a larger market share simply because of their ability to better incentivize users through more aggressive token emission models. Though this often comes at the expense of security as most of these protocols haven’t been thoroughly battle-tested and audited, users continue to gravitate towards them because of the nature of price discovery and its tendency to lead to a better price performance.
Top 10 FTM Ecosystem Projects sorted based on Total Value Locked (TVL)
AnySwap (Cross Chain Bridge & Swap Protocol)
Bridges play an integral role in the multi chain journey, so it is no surprise that AnySwap comprises a big amount of the ecosystem’s TVL with over $2.89B locked into the protocol
For this quarter, bridging fees reached $6.59M with 20% going towards buyback and burn ($1.32M ANY). As the demand in the FTM Ecosystem grows, we can also expect bridge fees to grow as well with value accruing towards the $ANY token itself
SpookySwap & SpiritSwap (Native DEXs on Fantom)
Both Spooky & Spirit are the top 2 native DEXs on Fantom
Spooky uses Sushi’s xSUSHI token model where BOO is staked as xBOO to earn platform fees and xBOO can be staked to farm token rewards from partner protocols
Spirit on the other hand utilizes Curve’s veCRV token lockup style in order to earn platform fees and obtain boosts for incentivized farms via voting gauges
In terms of Total Value Locked, SpookySwap has the edge with over 2x more than SpiritSwap ($600M vs $300M) however, their market caps are quite similar with Spooky being $150M and Spirit being $100M
In terms of upcoming developments, SpookySwap has it’s Magicat NFTs coming soon while Daniele of Abracadabra has openly stated that SpiritSwap will be the first DEX to integrate Margin Trading via SPELL
SpiritSwap Farming Pool Rates
SpookySwap Farming Pool Rates
Curve (Stablecoin Liquidity Pool)
For atricrypto, geist USD, and 2pool pools, users can expect an additional 36%, 22%, and 23% respectively in GEIST / CRV / wFTM incentives on top of their current base pool APYs
Curve Rates on FTM
Geist & Scream (Algorithmic Liquidity Market Protocols)
Geist & Scream are both native ecosystem lending protocols that are a perfect example of the case cited earlier. Despite being clones of Aave / Compound, both protocols have managed to accrue over $1.47B (Geist) and $474M (Scream) in TVL, about (~33x / 10x) more than CREAM, which is a much more battle-tested protocol with multiple partnerships and was surprisingly, the first lending / borrowing platform on Fantom
However, users still migrated towards the native protocols due to their liquidity mining programs which incentivized users with tokens and gave higher yields
Geist uses Ellipsis’ token staking model wherein users could lock their GEIST to earn platform fees and penalty fees from those who unlock earlier
SCREAM on the other hand utilizes SUSHI’s xSUSHI token model wherein value is accrued directly to the token itself
Geist Finance Lending / Borrowing Rates
Scream Finance Lending / Borrowing Rates
Grim Finance & Reaper Farm (Auto Compounders & Yield Maximizers)
Both Grim & Reaper are the top native yield optimizers with teams that work fast to provide support for as many token pairs on as many DEXs allowing users to maximize yield via their auto compounding yield farming strategies
Unlike Reaper Farm, Grim Finance has a token which users can stake to earn 50% of all platform harvest fees
Since Reaper doesn’t have a token out yet, it could be a great idea to deposit in their vaults in the hopes of a potential airdrop
Grim Finance Auto Compounding Rates
Reaper Farm Auto Compounding Rates
Liquid Driver (Liquidity-on-Demand Platform)
Liquid Driver offers liquidity as a service to platforms in the Fantom Ecosystem, incentivizing LPs for their partner protocols and redistributing yields earned from their partner pools to the Revenue Sharing Vault which xLQDR holders can claim every week
Leveraged Farming is said to be releasing soon which would allow users to farm on their favorite AMMs with leverage in one transaction
Liquid Driver Farming Rates
Tarot Finance (Leveraged Yield Farming Platform)
Tarot Finance allows lenders to supply tokens in isolated lending pools to earn yield without risk of impermanent loss. It also enables borrowers to leverage their LP tokens for enhanced liquidity rewards
With a wide variety of LP pairs, users can choose various single-sided pools to maximize yield for assets that they are bullish on and wish to hold
Tarot Finance Isolated Lending Pool & Leveraged LP Rates
Beethoven X (Decentralized Investment Platform)
Beethoven X is a native protocol based on Balancer V2 which provides users with investment strategies in the form of various weighted investment pools
Users can earn more rewards by staking their LP tokens to farm the native token
In the future, transaction fees will be introduced which buys BEETS off the open market and is redistributed to liquidity stakers
Beethoven X Farming Rates
Other Opportunities
For those who are looking to dive deeper into the Fantom Ecosystem, below are a mix of newer, under the radar projects which have the potential to perform well. However, since these protocols are newer and possibly not even thoroughly audited yet, users must do their due diligence before using any of them.
SoulSwap
SoulSwap is another platform looking to be a DeFi suite on Fantom by offering a DEX, atomic swaps, P2P lending and cross-chain reward mechanisms to name a few
SoulSwap utilizes Sushi’s xSUSHI token model to incentivize users to remain aligned with the long-term vision of the project while offering great yields for LPs
Mensa
Mensa Protocol is another native decentralized lending platform which is currently offering a liquidity mining program with MENSA token incentives for users who deposit and borrow on the protocol
Mensa adopts a similar method to Ellipsis with a 1-month lock-in period for mining rewards. Users who unlock in advance take a 25% penalty which is then redistributed to those who continue to stake in the protocol
RoboVault
RoboVault is a single asset automated yield generator on Fantom that utilizes a single-asset hedged yield farming strategy. In this strategy, a portion of a user’s holdings are allocated to a lending protocol to borrow a secondary token to create a hedged LP position. This allows users to earn higher yields on their assets
Vaults are currently locked to prevent any exploits as a critical bug was discovered by the Yearn Finance Team. The RoboVault team has stated that they are currently addressing the issue and are looking to relaunch soon. This comes with rumors that have been floating around that the relaunch comes with a possibility for a token airdrop.
Tomb Finance
Unlike other algorithmic stablecoin protocols, TOMB is not pegged to a stablecoin but rather to FTM
With the aim of becoming the medium of exchange on Fantom, TOMB utilizes a multi-token protocol to maintain peg wherein the supply of TOMB is dynamically adjusted relative to the price of FTM
Coffin Finance
Unlike Tomb Finance, Coffin Finance is a partially-collateralized stable token protocol on Fantom inspired by Frax and Iron Finance
Coffin iterates on previous algorithmic stablecoins by adding a taxable event whenever CoUSD is below peg, which helps make the supply deflationary and removing the taxable event whenever CoUSD is above peg thus making the supply inflationary
Coffin also introduced burning mechanisms which help accrue value to the native token COFFIN and also aid in CoUSD price stability
X.xyz
X is community-owned, cross-chain NFT marketplace that supports minting, buying and selling of NFTs
Though not a yield farming opportunity, it has been rumored that there could be a possible airdrop for users of the platform so performing actions such as minting, selling and buying of NFTs may pan out well
Opportunities Newly Launched / Launching Soon
Summit DeFi
Summit DeFi is an experimental, gamified yield farming protocol which just launched barely 2 days ago and has since been able to amass nearly $30M in TVL and a market cap of just $5M
Summit brings a new flavor to the game of yield farming by introducing yield multipliers. Simply put, users are able to risk their yield against other users in the hopes of winning their yield. The best part is a user’s principal amount is never at risk
As the higher reward multiplier levels open in the succeeding days, users can try their luck in the hopes of securing a big pot of yield. Till then for the faint of heart, the guaranteed 1x pools should suffice but where’s the fun in that
Yearn Finance
A powerhouse known across all of DeFi, the beta launch of Yearn Finance on Fantom was met with a lot excitement as their Vaults, Labs and Iron Bank will allow users to generate the most yield all through one, simple, smart and secure interface
Popsicle Finance
With numerous security audits, LITE and PRO UX versions for Sorbetto Fragola V2, and Leverage LP to be available shortly after the relaunch, it’s no surprise that users are eagerly awaiting the relaunch of Popsicle Finance, a multi chain yield optimization platform that gives Liquidity Providers the highest possible yield on their assets
Closing Thoughts
The strong wave of projects launching on Fantom coupled with an incentive program structured to reward developers and projects who remain committed for the long term, has brought significant amounts of users, developers, and capital into the ecosystem. Though capital can easily migrate towards other chains, we’ve seen how native projects launching with strong token incentives can easily gain momentum. Coupled with the various catalysts, the future of the FTM ecosystem is looking bright and is hinting towards the possibility for further growth.
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⚠️ DISCLAIMER: Investing into cryptocurrency and DeFi platforms comes with inherent risk including technical risk, human error, platform failure and more. At certain points throughout this post, we might get commission for promoting certain projects, if this is the case we will always make sure it is clear. We are strictly an educational content platform, nothing we offer is financial advice. We are not professionals or licensed advisors.
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