Articles about #leechprotocol

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

Guide from Hacken: How to choose a secure yield farming platform?

21/10/2023

Home | News & Insights Guide from Hacken: How to choose a secure yield farming platform? The quest for the best yield farming platform is underway. You have already studied the light papers and know the average APYs across the market. The next big step is to look into security. So many questions. Where to start, and what’s essential? How to calculate the risks? Where to get objective data? How long would it take? With a little bit of expert help, you can easily perform your own accurate and time-efficient Due Diligence to get ahead of the curve. We teamed up with a leading blockchain cybersecurity company Hacken to get the answers. We chose Hacken because they are industry experts in smart contract audits and know everything about blockchain security. CoinMarketCap and CoinGecko recognize Hacken’s audit reports, which speaks volumes about their industry recognition. Hacken is at the forefront of industry-wide smart contract audit standards as they are one of the contributors to EthTrust Specification. With five years of experience, 180 partners, and more than 1,000 protected clients, Hacken is among the top blockchain security auditors. Here’s a step-by-step guide from Hacken’s cybersecurity experts on how to choose the most secure platform for yield farming. Step 1. Check Scope and Relevance of Smart Contract Audit It’s impossible to overestimate the importance of smart contracts for yield farming platforms. A Smart contract is a code that governs and automates transactions. It typically consists of multiple functions, such as staking, withdrawing, lending, etc., that power up a DeFi platform’s operations. Secure smart contracts work as intended every time without any loophole for manipulation. Unfortunately, smart contracts are rarely without vulnerabilities. The most common are: All these vulnerabilities enable data breaches or private key leaks. The good news is that yield farming platforms can address these vulnerabilities with an external audit. An external audit is basically a thorough code review to ensure that all functions of the smart contract code work as intended without any hidden loopholes. Writing perfect code is almost impossible because developers are only humans who occasionally make errors. This is especially true when devs are constrained by time and resources. Smart contracts are vital for secure yielding platforms, but not all audits are created equal. Relevance and coverage are two main questions you must consider. The audit must be relevant and cover the entire project. Web3 projects typically have multiple smart contracts to ensure all of their features work as intended. All contracts (not just one) must be audited. Checking audit relevancy and scope with an example Step 1. Locate Public Audit Let’s take a look at one of Hacken’s clients, Zharta — a lending platform. Notice “Auidited by Hacken” badge on their website. Conveniently, Hacken website provides a list of all the public audits it has completed. We can easily locate Zharta’s audit here. Step 2. Locate a codebase repository First, let’s head to the “Scope” section on Page 4. We have a link to the repository and commit. The repository here matches the codebase that Hacken audited. Step 3. Check audit relevancy Once in their GitHub repository, notice the date of the last commit for ./protocol-v1/contracts/ (highlighted in red). The date of the last commit matches the date of Hacken’s audit. As a result, the audit is 100% relevant (as of the day of writing). Step 4. Check audit scope Inside the same folder (protocol-v1/contracts/), we have counted the number of key files — 12 smart contracts in the Vyper programming language. Inside the protocol-v1/interfaces folder, we count 11 contracts. Noooow, let’s compare this number with what’s inside the audit report. Go to Hacken’s audit report once again, and locate the Audit Scope section for the Fourth review scope. The audit by Hacken reviewed 12 contracts in the ./contracts folder and 11 contracts in the ./interfaces folder. Zharta’s codebase is powered by the same number of contracts. Therefore, the audit covers close to 100% of the key on-chain functionality. Step 5. What about vulnerabilities? It’s finally time to look at found issues inside the report. Hacken found 2 critical issues, 16 high, 5 medium, and 4 low. Three iterations later, Zharta developers resolved almost everything. You can read more about each found issue and how it was fixed in the report. Also, the final audit score is 8.4 It’s time for conclusions The Zharta landing platform has almost perfect audit coverage and relevancy with a very high score of 8.4. However, not all audits are this diligent. Unfortunately, we have hundreds of crypto projects with low coverage and a codebase that is no longer relevant. Again you can check Audit Relevancy and Audit Scope metrics at CER.live, but not all projects are listed there yet. Step 2. Is the Blockchain Protocol Safe? A protocol audit is different from a smart contract audit. Yield aggregators can interact with one or more blockchains. Leech, for example, works across 12+ blockchains. Some chains, such as Ethereum or Avalanche, are well-established with minimal security concerns. New chains are less recognized and don’t enjoy the same level of trust. DefiLlama lists 290 yield farming protocols working across more than 50 chains in total. You cannot assume that each one is safe. A new chain can earn trust by having an external blockchain audit. To verify whether a blockchain is audited, go to its website and check for the security page. Alternatively, information about the audit can be retrieved from the project’s repository on CoinGecko’s Security tab. Step 3. Background Check The significant purpose of a background check is to minimize the risk of a rug pull. Not all founders have the best intentions in mind. Some are growing their yield farming business with the sole goal of running off with users’ and investors’ assets. You’ll never see them again, and no one will return your money. Rug pulls happen almost monthly, so stay clear of fraudulent projects. Reputation is everything in a trustless environment. Look for LinkedIn pages, video interviews, and other valuable information about the platform’s founders. Who are they? Are they DeFi experts with a proven track record or amateurs with risky ideas and no