Articles about #leechprotocol

Yield Farming Academy #1 Crypto Wallets

29/09/2023

Home | News & Insights Yield Farming Academy #1 Crypto Wallets This is the first lecture in the Yield Farming Academy section from the Leech Protocol. The path of any crypto enthusiast begins with the creation of a wallet. In this lecture we will tell you all about wallets and even more. Sit down comfortably, make yourself a cup of tea and we’ll start our tech journey! Table of Content What is Crypto Wallet and how it works? A cryptocurrency wallet is like a digital safe that allows you to store, manage, and use your cryptocurrencies securely. It’s a tool that helps you interact with the exciting world of digital assets safely and conveniently. When you create a cryptocurrency wallet, you create a unique digital identity for yourself. It’s like having your own virtual bank account but with the benefit of complete control and privacy. A critical aspect of a cryptocurrency wallet is the creation of your private and public keys. The private key is a confidential piece of information that only you should know. It’s like your secret password to unlock your wallet and make transactions. The public key, on the other hand, is like your public address. It’s what you share with others to receive funds. What is Crypto Wallet and how it works? Using a cryptocurrency wallet is as easy as using any other digital tool. Once you’ve set up your wallet, you can check your balances, send funds to others or receive funds. When you initiate a transaction, your wallet digitally signs it with your private key to prove that you’re the rightful owner of the funds. This signature is then broadcasted to the blockchain network, where it gets verified and added to the decentralized ledger. This way, you can be confident that your transactions are secure and transparent. In addition, it’s impossible to reveal your private key from the signature. It’s important to note that different types of cryptocurrency wallets are available on the market. Some wallets are custodial, meaning they are provided by third-party services that manage your private keys on your behalf. Others are non-custodial, which means you have complete control over your keys and funds. Another critical point in understanding how wallets work is that your assets are not stored in a wallet, they are stored on a blockchain, and the wallet allows you to manage them. With the right cryptocurrency wallet, you can dive into the exciting world of digital currencies and decentralized finance with confidence and peace of mind. Safely store your funds, manage your transactions, and explore the endless possibilities of crypto and the DeFi world. We created this session of Yield Farming Academy to describe all the essential aspects of crypto wallets. Please read it carefully and check our tutorial at the end. Also, we prepared some quests & tasks for you to prove your knowledge. The Evolution of Crypto Wallets The Evolution of Crypto Wallets Crypto wallets have come a long way to cater the evolving needs of users and enhance security measures. Let’s explore the notable developments in the evolution of crypto wallets: By embracing these advancements, crypto wallets have evolved into sophisticated tools that empower users to securely store, manage, and transact with their digital assets. Ultimately, choosing a cryptocurrency wallet depends on your needs and preferences. Consider security features, user-friendliness, compatibility with cryptocurrencies, DeFi interaction and backup options. Researching and selecting a reputable wallet that aligns with your requirements is always better than trusting someone’s opinion. Custodial and non-custodial wallets Custodial and non-custodial wallets are two different types of cryptocurrency wallets that differ in terms of control and custody of private keys. Custodial and non-custodial wallets Custodial Wallets: Custodial wallets, also known as hosted wallets or third-party wallets, are wallets where the private keys of the users’ cryptocurrency holdings are held and managed by a third-party service provider. In this type of wallet, users rely on the custodian to safeguard their private keys and manage their funds. Examples of custodial wallets include wallets provided by cryptocurrency exchanges like Coinbase, Binance, or Kraken. Pros of Custodial Wallets: Cons of Custodial Wallets: Non-Custodial Wallets: Non-custodial wallets, also known as self-custody wallets or user-controlled wallets, are wallets where users have full control over their private keys. In this type of wallet, users generate and store their private keys locally on their devices or in a secure offline environment. Non-custodial wallets do not rely on any third-party service provider to manage the private keys or access the funds. Examples of non-custodial wallets include software wallets like Electrum, MetaMask, and Argent, or hardware wallets. Pros of Non-Custodial Wallets: Cons of Non-Custodial Wallets: When choosing between custodial and non-custodial wallets, users should consider factors such as security, control, privacy, and their own level of expertise in managing cryptocurrency wallets. In our industry, we have amazing Quote. Not Your Keys, Not Your Coins! It is essential to weigh the trade-offs and choose the option that aligns with their preferences and requirements. We recommend using non-custodial wallets for most of the crypto portfolio. The public key & wallet address and private key & seed phrase Let’s dive into more technical aspects of the relationship between the public key & wallet address and private key & seed phrase: The public key & wallet address and private key & seed phrase Public Key: The public key is a publicly shared cryptographic key for encryption and verification. It is derived from the private key using a mathematical algorithm. Public keys are required to encrypt data or verify the authenticity of digital signatures. They are accessible to others without compromising the security of the encryption process. For example, when someone wants to send you an encrypted message, they use your public key to encrypt it. Only you, as the holder of the corresponding private key, can decrypt and access the message. Wallet Address: A wallet address is a unique identifier used in cryptocurrencies to receive funds. It is a string of alphanumeric characters, such as a Bitcoin or Ethereum address. When you want someone to

ETHcc side event by Leech Protocol

21/10/2023

Home | News & Insights ETHcc side event by Leech Protocol: Yield Farming Workshop RECAP We recently hosted an exhilarating Yield Farming Workshop as a side event at the ETHcc Conference, and it was a blast! Here’s a quick recap of what we covered: We are close to our 2nd stage of Launch! Follow our Twitter and Telegram to join the testing and get a reward as an early contributor! What should you do next? Share Twitter Facebook Telegram

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.