Articles about #DEFI

Leech Protocol’s Q3 2023 RECAP

28/09/2023

Home | News & Insights Leech Protocol’s Q3 2023 RECAP Hey, Leechers! It’s been a wild ride so far! A couple of days before the end of Q3 we are ready to share all the important achievements we’ve completed! Product updates Marketing & Community Updates New partners and protocols onboard! What do we plan to accomplish shortly? As we build an #easyDeFi product – so priority #1 is our Mixed Pools. We will add more pools and protocols to our automated farming algorithms! The process is quite simple: 1️⃣ A user provides liquidity via App 2️⃣ Algorithm search for best APRs 3️⃣ Liquidity goes to connected pools, according to the chosen RISK Level 4️⃣ The user enjoys non-stop yields 5️⃣ If APR goes down – repeat 2️⃣ 6️⃣ Withdraw is available at any moment! The next big thing we have been working on to show it on-chain – is our hedging strategy. Let’s review the historical backtests and describe the strategy’s algorithm below. 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’s historical data. Use of our hedging strategy resulted in a 19.06% portfolio value increase (48.06% annualized), vs. a 0.66% 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%, in just over 5 months. Hedging strategy algorithm: 1 – the user provides his liquidity via our app 2 – smart contract starts managing the liquidity into We automatically close the short position if the price goes up and rebalance it. We are cooking the UNI v3 strategy for the Leech Club members only! Uniswap v3 (CLMM) strategy allows you to hedge the impermanent loss and rebalance the position on any protocol that supports Concentrated Liquidity so that it always remains active. The strategy works on all EVM blockchains where Concentrated Liquidity Protocols are present. Moreover, the strategy works with narrow ranges, that allow generation of high returns on the underlying assets. Backtests showed a 70%+ return on the USDC/ETH pair on the Arbitrum chain and more than 150%+ on medium and low-liquidity assets. Onchain results are really promising and we’ll be sharing more details with interested parties. Mid-term plans GLP neutral strategy GLP-based strategies have a lot of potential despite the current market conditions. This strategy is also highly capital-intensive, and GLP’s utility ecosystem is constantly expanding. We forecast upcoming market conditions when this strategy will be able to accommodate a large TVL with probable returns of ~30% APR (as was previously during the volatile market). Lido Leverage Yield Farming Strategy This strategy utilizes DeFi’s fundamental products and contains the underlying yield of the Ethereum network. It safely exploits the inefficiency between the underlying stake rate and the credit market rate. What should you do next? Share: Twitter Facebook Telegram

Yield Farming Academy #2 Defi Ecosystems

04/10/2023

Home | News & Insights Yield Farming Academy #2 Defi Ecosystems This is the second lecture of a series on “Leech Protocol” from our Yield Farming Academy. In this tutorial, we will review the DeFi Ecosystems. We will cover the following topics in this session: So make yourself comfortable, grab your favorite beverage if you like, and let’s kick offour tech journey! What is DeFi in general? Decentralized finance, or DeFi, represents a new wave of innovation in the financial sector that initially began with the advent of the Ethereum blockchain and its smart contracts. So that we can understand Defi better, let’s begin by exploring its origins. The traditional stock market, where you can buy and sell stocks, has an entire ecosystem of tools at its disposal in working with assets. This ecosystem includes exchanges for trading equities, lendings, futures and options markets, synthetic assets, derivatives, and much more. This all began in the 17th century with the first stock exchange in Amsterdam and the first derivatives exchange in Japan. The modern stock market offers a variety of financial instruments that possess interconnectivity. For example, you can buy shares through an American broker, pledge them as collateral, take out a loan, and then invest the loan in an index fund. However, despite all of these possibilities, existing financial instruments have many limitations and problems that Web 3.0 technologies can solve. For instance, exchanges only operate at certain times, which creates inconvenience for trading on the other side of the world. Moreover, permission and queue waiting are required to obtain loans secured by various assets. The interfaces of these tools could be more appealing and convenient. Web 3.0 technologies offer solutions to these problems. The Ethereum blockchain and its Solidity programming language allow the creation of a smart contract that can operate on a 24/7 basis worldwide. Interactions with smart contracts are accessible from anywhere and do not require a KYC for use. Applications built on smart contracts can perform the essential functions of stock market instruments. Thus, it is possible to improve the world of financial instruments by creating them on the blockchain. In 2019, the first DeFi projects appeared on the Ethereum blockchain, such as Uniswap for asset exchange and MakerDAO for issuing stablecoins backed by Ethereum. These were the first steps in creating a new evolutionary financial world stage. What is DeFI Ecosystem? Decentralized Finance (DeFi) represents an ecosystem of financial instruments built on blockchain and web3 technologies. In 2020, a period often referred to as the “DeFi Summer,” decentralized applications, or dApps, experienced explosive growth. Many new projects emerged to disrupt traditional finance during this time, and even separate blockchains were explicitly created for the new era of financial instruments. For instance, Binance Smart Chain was made as an alternative to Ethereum, as transaction fees on the Ethereum blockchain were very high. Subsequently, blockchains such as Polygon, Fantom, and others emerged as well. New DeFi projects quickly appeared on these blockchains, forming a unique Financial ecosystem. Today, there are about 30 categories of decentralized financial instruments and approximately 2,500 working projects. Each of these projects perform specific functions that its developers embedded. Often, these functions were adapted from stock market instruments and improved by implementing Web3 technologies. Developing its own DeFi ecosystem benefits each blockchain, as it creates utility for its main coin, ultimately increasing its market value. In addition to paying for gas transactions, the coin can be used, for example, as collateral in lending protocols. For example, you can get a USDT loan by pledging ETH. Defi applications on each blockchain often interconnect, as they can be built on top of each other. For example, the LIDO protocol allows retail users to become validators and earn rewards by creating new Ethereum blocks. When you deposit ETH into LIDO, you receive a derivative that confirms your position in the LIDO protocol. This derivative is called stETH, and it trades freely on markets. There are also lending protocols that accept stETH as collateral for obtaining loans. You can exchange g stETH and get a USDT loan. The lending protocol is built on the assets from another protocol. This concept is called “DeFi Lego.” All these projects and their interconnections compose the DeFi ecosystem. Components of every DeFi ecosystem Each blockchain’s decentralized finance (DeFi) represents a complex ecosystem of various components and essential centers. DeFi represents these components through different projects that can be divided into categories. Projects in each category perform similar functions. For example, the “Lending” category includes various lending protocols. Here are some types of projects within the DeFi ecosystem and their functions: Liquid Staking: These protocols enable you to become block validators without additional maintenance and earn rewards. Liquid Staking also provides a tradable and liquid token for your staked position. Decentralized Exchanges (DEXs): These are protocols for asset exchanges. They use a peer-to-contract-to-peer model. Some users list assets in smart contracts, while others make asset exchanges. Lending Platforms: These are platforms where users can lend and borrow cryptocurrencies. Interest rates are often determined by supply and demand dynamics within the platform. Yield Farming: These products involve lending or staking cryptocurrencies in return for rewards, often in the form of additional cryptocurrency. Projects in this category can use simple and complex strategies to generate returns. Leech Protocol is a good example in Yield Farming niche. Derivatives: These are blockchain-based contracts that derive value from an underlying asset. These assets can be cryptocurrencies or other real-world assets. Asset Management Tools: These platforms help users manage their crypto investments across chains and products. Liquidity Aggregators: These platforms pool liquidity from various sources to facilitate trading and improve liquidity. Synthetics: These are blockchain-based financial instruments that mimic the value of real-world assets. Options: These are financial derivatives that provide the buyer the right, but not the obligation, to buy or sell an asset at a specific price on or before a certain date. NFT Marketplace: These platforms allow users to create, buy, and sell NFTs

2nd security audit and Early Birds Galxe Campaign for 🔥 APRs!

28/09/2023

Home | News & Insights 2nd security audit and Early Birds Galxe Campaign to access 🔥 APRs! Leech Protocol Early Birds Campaign Calling for all degens and DeFi enthusiasts! Leech Protocol is excited to share details about new security audit, highly-incentivized pools, and a new Galxe campaign to become whitelisted! TL;DR: Leech Protocol is an app that provides a user-friendly solution for simplifying the yield farming process across all major blockchains and platforms. We automate user routines, automatically performing tasks such as swapping, bridging, depositing, and compounding when using our Mixed Pools! Second Security Audit Safety and security are paramount in the world of DeFi, and we’re committed to delivering a trustworthy platform. We’re proud to reveal that Leech Protocol has successfully completed its second comprehensive security audit. We scored 10 out of 10 points from Hacken auditor – which is a great result! You can learn more details here! Private Yield Farming Strategies While the concept of yield farming is familiar, Leech Protocol is taking it to a new level. Our team has been hard at work testing and refining private yield farming strategies that are exclusively available for our Leech Club members. This means that by being part of the Leech Club, you gain access to unique yield farming opportunities that are designed to maximize your returns. Profit Sharing and Algorithm Expansion In line with our commitment to community engagement, we’ve decided to allocate a portion of our profits to incentivize our public pools. As we introduce new platforms to our yield farming algorithms, this incentive mechanism will encourage liquidity provision at this intermediate step! Increasing Maximum Wallet Allocation We’re pleased to announce that the maximum per-wallet allocation has been increased to $3000 for all whitelisted users. New users will have a chance to join via Galxe campaign below! Introducing the Early Bird Galxe Campaign To allow new users to join our community, we’ve launched the Early Birds Galxe campaign. This exciting initiative offers the chance to win and claim exclusive OAT tokens and experience APR rates ranging from 90% to 120% on the app. These exceptional rates will be paid out after 30 days of the upcoming hyper-incentivization epoch. To join app.leechprotocol.com as a whitelisted user – you need to complete all steps on Galxe, claim OAT, and wait for Email-notification, that you are whitelisted to join the platform and you can provide liquidity! As we look ahead, Leech Protocol is dedicated to pushing the boundaries of DeFi innovation. With security as our foundation and community empowerment as our driving force, we’re excited to shape the future of decentralized finance, one milestone at a time. Stay connected with us on Twitter for the latest updates, and join our Telegram chat in case you have a question! Disclaimer All cryptocurrency transactions, and especially those in the yield farming, including the Leech Protocol app and its announced Early Bird Galxe Campaign, involve multiple risks, including always the risk of losing all or part of funds used. You ****understand and agree that you use the Leech Protocol app at your own risk. You should therefore carefully consider whether it is suitable for you in light of your circumstances, experience and financial resources. You should be aware that you may sustain a total loss of your deposit while using our platform. You understand and assume this risk in full. IN ANY CASE, WE DO NOT BEAR ANY LIABILITY FOR ANY OF YOUR ACTIONS OR INACTIONS, ERRORS, OMISSIONS OR MISTAKES, OR FOR ANY OTHER CIRCUMSTANCES OCCURRED IN THE PERIOD OF YOUR USAGE THAT LED TO THE FULL OR PARTIAL LOSS OF YOUR DEPOSIT. Share: Twitter Facebook Telegram