Our work

Leech Protocol Launch, Stage 2

28/09/2023

Home | News & Insights Leech Protocol Launch, Stage 2: Testing Leech Protocol’s Multi-chain Farming App (Beta)! 2nd Launch Stage — Leech Protocol Leech Protocol is an app that provides a user-friendly solution for simplifying the yield farming process across all major blockchains and platforms, enabling users to efficiently earn yield on crypto in just a few clicks. The second stage of our product launch is imminent, with a maximum of $100K TVL, where each whitelisted wallet is able to deposit $20–500. The best part? Users that provide liquidity may be eligible for rewards from our team! Find the details below, and join the #easyDeFi movement! The Current State Of Leech Protocol’s Product Development First, and most important, we are happy to announce that our team of talented programmers and blockchain enthusiasts have successfully deployed the Beta Version of our multi-chain farming app, which we will be testing during the 2nd stage of our launch, with the help of our fantastic community! This is the first step of creating a platform designed to redefine how cryptocurrency farming operates. The app is integrated with five major chains: Binance Smart Chain (BSC), Avalanche, Polygon, Optimism, and Arbitrum. This multi-chain approach extends Leech Protocol’s compatibility and offers users an array of platforms on which they can execute our proprietary farming strategies. How Leech Protocol Is Different Leech Protocol has taken substantial strides to automate user routines, automatically performing tasks such as swapping, bridging, depositing, and compounding. This degree of automation is unique in the industry, liberating users from menial processes, allowing them to focus more on strategic decision-making instead of operational tasks. The second prominent feature (which has already been built), is a hedging strategy that can provide substantially higher-than-market APRs, and this strategy is available for testing by our inner circle of power users! If you think you want to become one — reach out! Our Hedging Strategy The main advantage of our strategy is that it provides an instrument that protects and stabilizes returns from an asset chosen by the user, while reducing the chance of that asset losing value due to impermanent loss and other market mechanics. How will it work? A user will choose a main asset, such as ETH, USDC, BTC, etc., and deposit it as their liquidity. Our system will swap some of the liquidity, bridge it (if needed), and distribute it into a defined pool list. For instance, if a user picks ETH as their main asset, the system will provide liquidity to different pools such as ETH/GEAR, ETH/MATIC, ETH/wUSDR, etc. At the same time, the system will keep track of changes in asset prices, APR, liquidity, etc. If the system identifies a specific situation which could negatively affect the profitability or portfolio value, it will rebalance the user’s provided liquidity and open a short position to hedge against asset volatility. This helps protect the main asset (such as ETH) from impermanent loss or price decreases. The result is that the returns come in the main asset, creating a steady income stream in all market conditions. We have proved the efficiency of this hedging strategy with backtests and on-chain tests, which have looked at the strategy’s behavior on historical data and how well the rebalancing module has performed in live pools on the Polygon network. Here you can see a backtest from Aug 1, 2022 to Jan 6, 2023, using the USDC/OP pool on Velodrome. We started with $100,000 and compounded daily. The average APR during this time was 50.49%, according to Beefy historical data. As you can see, using our hedging strategy resulted in a 19.06% portfolio value increase (48.06% annualized), vs a .66% increase (1.58% annualized) by providing liquidity to the pool, and a 17.6% decrease by holding 50% USDC and 50% OP. The strategy rebalanced 50 times, costing $1,010 and resulting in a net gain of just over $18K, or 18% for stablecoins, in just over 5 months. Here you can see a backtest from Apr 13, 2021 to Feb 13, 2023, using the USDC/ETH pool. We started with $100,000 and compounded daily (we continue with more in-depth testing). The Future of Leech Protocol So, what does the future of Leech Protocol hold in both the short and long term? In the immediate future, the Leech Protocol team intends to integrate over 100 different pools. The primary goal of this expansion is to provide users with a plethora of opportunities to increase their earnings, and this broad spectrum of earning avenues will not only allow users to capitalize on different market dynamics, but will also offer unprecedented versatility in yield farming strategies. In the long run, Leech Protocol aims to: Stage Two Short Term Plans During the second stage of launch, ambassador program participants and users registered on our Waitlist will have access to the Leech Protocol App beta. At this stage, each wallet will be able to deposit $20–500. The max TVL at this stage is limited to $100K. If you do not see the option to deposit during the second stage of launch (for example, if the maximum TVL of $100K is reached) you will need to wait until someone removes their liquidity, creating space for you to deposit your own liquidity. Any whitelisted wallet that deposits liquidity into the protocol during the second stage of launch will have a chance to receive a reward. The size of the reward will depend on the amount of liquidity and the length of time it is deposited for. The larger the amount and the longer the deposit period, the higher the reward may be. More details will be announced soon. If you can’t provide liquidity during the second stage of the launch, wait for the announcement of the third stage, which will have a higher TVL limit, along with another reward opportunity. Is my wallet waitlisted? How to check it? At the end of the second stage of the launch, you will be eligible to claim NFTs in another Galxe campaign (TBA). All neccessary instructions will be published.

Consensus 2023 and Leech Protocol’s Side Event

21/10/2023

Home | News & Insights Consensus 2023 and Leech Protocol’s Yield Farming Workshop Side Event Recap Leech Protocol’s team attended the Consensus Conference from the 26th to the 29th of April, where we networked with industry experts. On the 26th of April, the team also hosted a highly successful Yield Farming Workshop side event, bringing together yield farmers and partners to discuss important farming and liquidity mining topics. During the event, attendees had the opportunity to engage in a public speech about farming and participate in a Q&A session with our DeFi analysts and Product Advisors. The panel discussion that followed offered valuable insights into how to find real yield in DeFi, choose the right projects, and manage risks. Our team also showcased our unique farming approach, highlighting innovative features in the development that will offer farmers a more secure and profitable way to farm. The event concluded with networking and beer, providing an excellent opportunity for attendees to connect with other farmers and partners in the DeFi space. Overall, the event was a great success, offering attendees valuable insights and strategies to navigate the current crypto winter. What should you do next? Share Twitter Facebook Telegram

Velodrome Yield Farming Research

21/10/2023

Home | News & Insights Velodrome Yield Farming Research Research Summary About Velodrome The Velodrome-AMM DEX provides swaps with deep liquidity and low slippage. In other words, it gives us the opportunity to trade crypto with less slippage, meaning we get better prices. According to Defilama, the project has existed for less than a year, but has already become a central figure in the Optimism ecosystem, and seen a 4x increase in its TVL. Social Media: Documentation: Velodrome Finance distributes rewards using the same two tokens that you provide to the liquidity pool, plus $VELO. Trading commissions for these pools range from 0.02% to 0.05%, and the $VELO rewards depend on governance votes. The Optimal Deposit Amount & Token Type This giant in the Optimism ecosystem can benefit us not only with its large TVL, but also with its excellent set of farming tools. Here, we can start farming with as little as $500, up to $20,000. As always, risk management is one of the most important aspects of any strategy. For this research, we have chosen the sAMM-USD+/LUSD pool, where we are ready to deposit our stables ourselves. Due to the fact that this pool only consist of stable assets, we eliminate the risk of Impermanent Loss. This pool consists of entirely super collateralized stables. LUSD is a stablecoin on the ETH network, requiring 110% ETH collateral to mint. LUSD Information: Social Media: USD+ is a stablecoin on the Ethereum network which is 100% backed by a delta neutral strategy on various DeFi platforms. Why do we call this stable a tool? Users can use it to generate returns with the OVERNIGHT protocol. Here, the TVL represents the amount of USD+ in circulation. USD+ Information: Social Media: Velodrome APR This platform makes it possible to earn such high APRs due to the fact that it is the central index of the ecosystem. Most of the liquidity in Optimism goes through Velodrome As we utilize our funds in liquidity pools, the project earns revenue alongside us, by charging commissions for each transaction. Why does the project share earnings with us? In order for the project to function properly, a significant amount of liquidity is required. Without liquidity, no one could trade, and the project would die. In order to incentivize liquidity providers, the project shares a percentage of its revenue. Conclusion: The project generates profits through our involvement, and we also benefit financially. Commission Statistics Velodrome Profitability Approximate yield for a $20,000 deposit: For many, this profitability is not amazing, but it is always a good idea to diversify your funds among reliable stables.. Step By Step Instructions: If your stables are already in your wallet: Entry & Exit Costs (for $20,000) Sign in with KuCoin: Approximate costs: $20 to $25 If your stables are already in your wallet: Approximate costs: $16 to $52 Approximate payback time: 2.5 to 12+ days, depending on your method of entry, as well as your deposit size. Note: We swap from USDC to LUSD and USD+ on Velodrome due to those pairs having high liquidity and thus small price impact on large swaps. The bigger your deposit, the more important this is. Before withdrawing USDC, you can look at the price impact on the swaps, and choose a different initial stable if you will get a better swap rate. Risks Don’t forget that risks are multiplied in Defi, so keep a watchful eye on your positions. This research is brought to you by Leech Protocol Team and Degen Hustle researchers What should you do next? Share: Twitter Facebook Telegram