Hidden Gem: The Fantom + Tomb Finance Money Machine
Fantom (FTM) is one of crypto’s most promising ecosystems and is currently making waves with its still underrated integrated Tomb Finance application.
Fantom’s aBFT consensus protocol is delivering unparalleled speed, security, and reliability. Transactions on Fantoms Opera Mainnet are lightning-fast and incredibly cheap, to the envy of the Ethereum network.
What is Tomb Finance?
The first algorithmic stablecoin on Fantom Opera Mainnet is TOMB, which is pegged to the price of 1 FTM token via seigniorage. This means that TOMB moves in value with the cost of the FTM token. Typically, the price of TOMB is slightly higher than FTM, but there is also a chance where the price of TOMB moves below the value of FTM.
This is where T-Bonds come into play. TOMB Bonds (TBOND) primary job is to help incentivize changes in TOMB supply during an epoch contraction period. When the Time Weighted Average Price (TWAP) of TOMB falls below 1 FTM, TBONDs are issued by Tomb Finance and can be bought with TOMB at the current price. Exchanging TOMB for TBOND ultimately burns TOMB tokens, taking them out of circulation and helping to get the price back up to 1 FTM. This deflationary mechanism is a genius way to guarantee liquidity, vastly eliminating liquidation risk.
These TBONDs can be redeemed for TOMB when the price is above the peg in the future. There is also an extra incentive for holding them longer above peg. This amounts to inflation and selling pressure for TOMB when it is above the peg, helping to push it back toward 1 FTM.
This system makes Tomb Finance a very appealing, value-generating platform. In this review, we are not looking at TBONDs, but rather guide you step-by-step on how to earn high yields in this fast-growing ecosystem.
- First, you need to buy FTM tokens available on most major cryptocurrency exchanges.
- Now navigate to tomb.finance and connect your Fantom wallet. We use the Metamask wallet to connect to the site in this example.
- Once connected, you have two options to provide liquidity and earn TSHAREs. You can either combine FTM and TOMB or FTM and TSHARE tokens. Tomb Finance offers a super-convenient feature to generate the desired LP with a couple of clicks. The feature is called ZAP, which allows the user to generate the desired pair automatically, without having to hold the right amount of the relevant two tokens being combined. You only need FTM tokens to generate any of the two LPs! Click on Home and scroll to the bottom. Here you find the two LPs you can directly zap your FTM tokens into. Select ZAP IN under the LP of your choice.
- We select the TSHARE-FTM Spooky LP by clicking ZAP IN. Now, all we need to do is click on MAX underneath FTM available and click on APPROVE. You can verify if the operation was successful by checking your Metamask wallet for spLP tokens.
- Once done and verified the tokens are in our wallet, we navigate to the Cemetery and select the LP we just created (the one we just zapped).
- In our example, we selected the TSHARE-FTM-LP. We select the “+” button under TSHARE-FTM-LP Staked to provide our liquidity tokens and approve the transaction.
- We have now provided our TSHARE-FTM-LP into the pool and have started earning more TSHAREs!
- Once we have earned some TSHAREs, we can then CLAIM them and utilize them even further! Again, we are presented with two options: we can either generate more TSHARE-FTM-LP tokens to earn TSHAREs at a higher volume or earn TOMB tokens by depositing TSHAREs via the Masonry.
As you can see, there are a number of ways to generate income with Fantom via Tomb Finance. At this stage, the APRs are more than juicy and will most likely not last. So what are you waiting for?
As always, we recommend that you please do your own research and only invest what you can afford to lose.