Inventory of popular DeFi mining projects, after Uniswap joined the "fight"
On September 17, Uniswap, the number one decentralized trading platform, launched its protocol governance token UNI, and started initial liquidity mining at 12:00 am on September 18. By airdropping tokens to old users and joining the "movement" of yield farming, uniswap will once again push the battle for liquidity mining to a climax.
Liquidity mining is called "yeild farming" in foreign communities, agricultural farming. Liquidity mining players are called "farmers", and farmers obtain "harvests" (that is, various tokens) by "farming" (that is, mortgaging digital assets).
A few months ago, in mid-June 2020, Compound ignited the flame of "liquidity mining", yearn finance, sushiswap and other relays. So far, the DeFi sector has continued to be hot for several months. Under the wave after wave of sudden wealth effects, mobile farmers have become the most enviable profession today, and the asset flow and agglomeration effects are very rapid and obvious. As of September 16, 2020, the locked-up scale of DeFi was 8.91 billion US dollars, and the market value reached 14.1 billion US dollars.
Today, one new project every three days is already the norm in DeFi. In addition to the uncle series, sushi, grapes, sake, pickles... all kinds of dazzling project names have supported the frantic market for liquidity mining. On the one hand, the ultra-high annualized rate of return and excellent community governance have attracted many miners to mine all night; on the other hand, the hyped value of tokens has attracted many retail investors to invest in the secondary market.
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1. Yearn Finance
1. What is yearn finance?
Yearn Finance is a decentralized lending aggregator built on the Ethereum blockchain. YFI is a governance token launched by yearn.finance, with a total supply of 30,000 pieces, no pre-mining, no crowdfunding, and no team allocation , there is no investment institution reservation, and the online governance model is completely adopted, and all distributions are completely distributed to users who provide liquidity through liquidity mining.
As a lending aggregator, yearn finance integrates mainstream lending platforms such as Aave, Curve, Compound, Synthetix, Dydx and other protocols to optimize users' lending income. Users can mortgage DAI, USDC, TUSD, USDT and other stablecoins to earn passive income. The platform will automatically allocate the funds to the agreement with the highest income at present, and yearn will give users a proof of rights and interests called yToken. Users can pass ytoken Take out the tokens you originally deposited and the corresponding income, and you can also deposit them in y.curve.fi (the stable currency exchange pool jointly launched by yearn and Curve) to earn market-making income. (official website:https://yearn.finance/）
2. How to get YFI tokens?
Since YFI has no pre-mining, no crowdfunding, and is mainly distributed through liquidity mining, the only way for users to obtain the initial issuance of tokens is to become a liquidity miner in a pool of yEarn. Currently, yearn finance has three liquidity mining pools, namely yPool on curve, YFI-DAI pool and YFI-yCRV pool on balancer.
1) Curve pool. First in Curve.fi's yPool (https://www.curve.fi/iearn/deposit), you will get yCRV (Curve iearn LP Tokens), and you can earn YFI by putting yCRV into ygov.finance as a pledge.
2) YFI-DAI pool. First, you need to be a liquidity provider for the 98%DAI 2%YFI Balancer pool. Find the corresponding pool on Balancer, choose Add Liquidity, and after mortgage DAI, you will get BPT (98%DAI 2%YFI) tokens, with BPT tokens, you can put them in ygov.finance in order to earn YFI. (Note: At present, the first two pools have been dug.)
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2. yfii.finance
1. What is yfii.finance?
yfii.finance is the domestic version of "yearn" (YFII is its protocol governance token). It is also a loan aggregator and a fork project of yearn finance, which originated from the No. 8 proposal of the YFI project. Since the total number of YFI is only 30,000, the core developers of the community put forward a proposal for additional issuance, but it failed in the end. In order to prevent the community from being controlled by giant whale accounts, some community members, mainly from the Chinese community, forked the Yearn Finance project, founded YFII, and operated it independently. At the beginning of its birth, YFII was once not favored by others, but now it seems that the YFII community has proved itself to the market with its strong product innovation. (official website:https://yfii.finance/#/）
Like YFI, YFII has no pre-mining, no crowdfunding, no founder rewards, and can only be obtained by providing stable currency liquidity for YFII to mine. YFII has a community governance function and integrates mining income from various DeFi platforms.
But the difference is that YFII has added a Bitcoin-like halving and additional issuance mechanism, which is considered to have a fairer distribution plan. The total amount of YFII is 40,000, and the output is halved every 7 days, and the distribution is completed in 10 weeks. The corresponding proportion of YFII is allocated according to the share of liquidity provided by DeFi users for each Pool. This distribution scheme is also considered fairer and more community-based.
In addition, compared with YFI's multi-signature method, YFII adopts a more radical and DeFi fundamental method of destroying and issuing rights. 3% of the profit is used to repurchase and destroy part of YFII. At present, the token issuance rights have been transferred to 0x0 for destruction. . (For a detailed comparison of YFI & YFII, see the chart belowhttps://www.yuque.com/sawd49/faq/gs117f）
Comparison of token distribution and mining mechanisms of YFI and YFII
2. How to mine YFII?
YFII currently has three mining methods: its own original distribution pool pool1, pool2, and vault mining.
1) Pool1: Mining YFII rewards by staking the stablecoin yCRV. Like YFI, first you need to enter Curve.fi's yPool (https://www.curve.fi/iearn/deposit) into USDT/DAI/USDC/TUSD to convert any currency to yCRV; put yCRV into yfii.finance (https://yfii.finance/#/staking) in the pool1 pledge, you can mine YFII.
Features: No loss of principal, zero profit, but low yield due to large number of people
Earnings Calculator:https://yieldfarming.info/yfii/ycrv/
2) Pool2: Provide liquidity in Balancer's 98% DAI 2% YFII pool to obtain BPT rewards, and then mortgage BPT to mine YFII. After entering the page, you can see your BPT balance, select Stake Tokens, click on the balance above the input box to automatically fill in the pledge amount after entering, click on the mortgage token, pay the gas fee, and you can successfully start mining.
Features: There may be impermanent losses (according to the ratio of 2:98, when YFII falls by 50%, the principal will start to lose, and when YFII falls by 90%, the principal will lose about 10%)
3) Vault smart pool mining: YFII Vault is a smart contract that automatically allocates the best DeFi mining income in the market with one-key gold. Users only need to deposit the corresponding currency into the Vault to obtain the highest DeFi mining income in the market without any contract operations.
Access your own wallet first on the official website, click Smart Pool (https://dfi.money/) page, select a currency, such as yCRV, click the red arrow, enter the amount or percentage of pledge, click Authorize, and mining will start successfully. (Extraction is available on the right side of the same interface)
Currently supports USDT, USDC, DAI, TUSD, WETH, yCRV and other currency mining
Features: Easy to operate, guaranteed principal safety and sustainability.
Profit Expectation: The rate of return changes dynamically, depending on the rate of return of existing mining projects in the market.
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3. SushiSwap
1. What are Sushiswap and SUSHI?
SushiSwap is a decentralized cryptocurrency exchange built on Ethereum, a fork project of Uniswap v2, initiated by an anonymous developer named Chef Nomi. (Chef Nomi transferred control of the project to FTX CEO Sam Bankman-Fried after selling SUSHI for cash).
SushiSwap introduced a governance token named SUSHI based on Uniswap, and launched liquidity mining before Uniswap. SUSHI is mainly used to reward those who provide liquidity for the protocol, and can be used for protocol governance. Those who hold Uniswap LP tokens can obtain SUSHI tokens by putting these LP tokens in the corresponding initial fund pool list of Sushiswap to provide liquidity. Among them, the highest rate of return in the fund pool is the "sushi pool" - SUSHI-ETH, and staking in this pool will get an additional 2 times the SUSHI reward.
2. How to mine SUSHI?
Provide liquidity for Sushiswap's exchange fund pool, and you can get SUSHI tokens. The specific operation steps are as follows:
Log in to Uniswap official website (https://app.sushiswap.org), click unlock wallet, connect wallet (metamask, etc.); click Menu to enter, take SUSHI-ETH SLP token as an example (other SLP token operations are the same as SUSHI-ETH SLP);
Select Enter, approve the deposit into the MasterChef contract, and you're done.
If you do not have SUSHI-ETH SLP tokens, you need to provide liquidity to the Sushiswap Sushi-ETH fund pool to get them. Click Exchange, select Add Liquidity, buy Sushi (Sushi contract address: 0x6b3595068778dd592e39a122f4f5a5cf09c90fe2), add Sushi-ETH liquidity according to the current ratio, and you will get SUSHI-ETH SLP tokens after confirmation.
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4. Uniswap
1. What is Uniswap?
Uniswap is the leading decentralized exchange protocol on Ethereum and belongs to a very old decentralized trading platform. The automatic market maker (AMM) model is adopted, allowing anyone to provide liquidity conveniently and quickly. With the rapid growth of DEX, the daily trading volume of Uniswap can already be compared with CEX. So far, Uniswap has taken the lead in terms of trading volume and liquidity, and its monthly trading volume has exceeded 10 billion US dollars. On September 17, Uniswap issued the protocol governance token UNI, and on September 18, launched a liquidity mining plan.
The total circulation of UNI is 1 billion pieces, which will be released within 4 years. Among them, 60% will be allocated to Uniswap community members, 21.51% will be allocated to team members, 17.80% will be allocated to investors, and 0.69% will be allocated to advisors. Initially, UNI is available through 4 liquidity mining pools, and after an initial 30-day governance grace period, UNI holders can vote to add more pools.
2. How to participate in UNI mining?
UNI tokens are mainly used to decentralize protocol governance rights to users, and are used to reward users who provide liquidity tokens. Therefore, you can earn UNI by providing liquidity for the uniswap fund pool. The initial liquidity mining is scheduled to start at 12:00 am UTC on September 18th and will continue until 12:00 am UTC on November 17th. Currently, the four liquidity pools of ETH/USDT, ETH/USDC, ETH/DAI and ETH/WBTC can be rewarded for mining. Each pool will allocate 5 million UNI to LP, about 54 UNI every 15 seconds in the Ethereum block.
Mining method: Click "UNI" on the homepage of uniswap to enter the fund pool page that can be participated in, select a trading pair pool and click "Deposit", then "Add Liquidity" to add liquidity, and it is completed.
3. Differences between Uniswap and SushiSwap
Compare the differences between Uniswap and SushiSwap: 1) In Uniswap, LPs can earn 0.3% transaction fees in any pool, and these fees are distributed proportionally to all LPs in each pool; SushiSwap introduces formalities Fee commission, of which LP only earns 0.25%, and the remaining 0.05% is used to repurchase SUSHI, and then distributed to all SUSHI holders in proportion.
2) Using Uniswap, liquidity providers only earn transaction fees for the fund pool when they provide liquidity. Once they withdraw their funds from the pool, they will no longer receive corresponding income; and SushiSwap, even if you decide not to provide liquidity, those SUSHI tokens will also entitle you to continue to earn a part of the transaction fees of the SUSHI protocol.
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5. Swerve
1. What is Swerve Finance?
Swerve（https://swerve.fm/) is a fork project of Curve, which went live on September 5 and launched liquidity mining. Curve is a decentralized exchange that focuses on stablecoin transactions. The way Swerve forked Curve is similar to the way Sushi forked Uniswap. The former and the latter are both competitive. The reason why Swerve decided to fork is mainly because some users are not satisfied with some of Curve’s management systems. For example, Curve is highly inflationary, and the daily supply will increase by about 2 million CRV (about 4 million US dollars); Curve is only 62% of the supply is allocated to LPs; the team owns more than 70% of the voting power, etc. Swerve has made corresponding improvements to Curve's protocol, such as allocating all supply to LPs, and all tokens will be distributed within 6 years.
2. How to mine?
SWRV is the governance token of Swerve, with a total circulation of 33 million pieces. There is no pre-mining and private placement, and it is completely owned by the community. The total mining time is 6 years, and it is now in the first phase. It also belongs to stable currency mining, and the cost has no risk of loss.
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6. SakeSwap
1. What is sakeswap?
What everyone commonly calls "Sake" is also a decentralized trading platform. Compared with Sushiswap and Uniswap, Sakeswap has higher incentive efficiency, which is mainly reflected in two aspects: the introduction of a deflation model; transaction slippage capture.
The constant product transaction curve mechanism adopted by Uniswap is difficult to solve the slippage problem of stablecoins. However, SUSHI directly forked the Uniswap mechanism, and did not solve the slippage problem of stable coins. Miners can arbitrage through transactions.
Therefore, SakeSwap has several innovations in product design: 1. Use 0.05% of the service fee income to repurchase tokens (70% of which are allocated to the mortgagers of SAKE tokens, and 30% of SAKE tokens will be destroyed). In addition, stable 0.3% of the currency transaction fee is also used to purchase SAKE tokens and burn them. 2. Reduce slippage. Different from the arbitrage trading of traditional DEX, which eats the transaction slippage arbitrage by itself, Sakeswap adopts the mode of automatic trading slippage capture, and 50% of the slippage income will be distributed to the liquidity provider. 3. In terms of mining design, UNI and SAKE dual mining will be supported soon, and transaction mining will be launched on the basis of liquidity mining (the second phase starts).
2. How to mine to obtain SAKE?
SAKE mining is divided into two stages: liquidity mining and transaction mining.
Currently in the liquidity mining phase (phase 1), SAKE token rewards are provided to miners who provide liquidity. The total amount issued is 111,750,000 SAKE tokens, and by default 100 SAKE tokens are mined per block.
There are three main ways of mining: mortgage Uniswap LP Token to obtain SAKE tokens, mortgage SUSHI LP Token to obtain SAKE tokens, mortgage Sake LP Token to obtain UNI token and SAKE token double mining (coming soon).
Transaction mining (second phase) will continue from block 235,000 to block 2,400,000 (day 35 to 1 year), and miners of transactions will be rewarded with SAKE tokens. The total amount of issuance at this stage is 26,000,000 SAKE tokens, and by default 10 SAKE tokens are mined per block. In addition, the Sake platform will provide traders with S-TOKEN transaction certificates, and traders can mortgage S-TOKEN to obtain SAKE token rewards.
