The Team from CyberBrokers & Leveraged Yield Farming

the team from elrond

In This Issue

  • The team from CyberBrokers discusses their digital art collectibles ecosystem.
  • Matt has a report for you on leveraged yield farming.

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CyberBrokers Inverview

For anyone not familiar what is CyberBrokers?

CyberBrokers is a digital art collectibles ecosystem centered around 10,001 unique and on-chain NFTs. Each CyberBroker has an identity and backstory that interweaves with ongoing, interactive Lore, community Quests, and related collectible drops.

As a project, we are focused on building out our three core pillars of content, collectibles, and gaming. Overall we aim to create high-quality and technologically advanced digital and physical collectibles, thrilling community experiences, and captivating storytelling and content. 

Can you tell us a bit about your personal history as an artist in and out and the crypto space Josie?

In 2017, I left the traditional finance world to join the cultural revolution of crypto. Since then, I’ve been creating art that celebrates and tells the story of the crypto ecosystem. This journey has led me down a path I could have never imagined: I am grateful to have exhibited and sold my artwork at conferences, galleries (including Christie’s and Sotheby’s), and of course, the metaverse. This has all led me to CyberBrokers, a Web3-native company where I can continue to push the boundaries of NFTs and dive deeper into the metaverse.

Who else is working with you on the CyberBrokers project?

We are lucky to have so many talented people on our growing team, and have recently hired a few more! Other than myself, our founding core team members include Ben Heidorn, Christopher Chapman, and Azamat Khairov.

Ben is our Technical Lead and overall a super talented blockchain engineer, game developer, and programmer. He is also the CTO of Blockade Games and a co-creator of Neon District, Plasma Bears, Pineapple Arcade, and Ledger of Szabo. Chris is our brilliant Creative Director, responsible for crafting our lore and all things narrative, and has worked at many diverse organizations you’ve likely heard of, such as The Sandbox, Universal Pictures, and Disney, to name a few. And finally, Azamat is a talented digital artist whom I collaborated with on the entire collection of CyberBrokers and has joined our team to continue to expand our universe visually.

We are also hiring! If you, or someone you know, are an amazing marketer or character technical artist that is passionate about our project, ping us at info@cyberbrokers,io.

What was the inspiration behind CyberBrokers?

CyberBrokers was originally inspired by cryptoart, futuristic fashion, cyberpunk art, innovative tech, and of course, the metaverse. But everything got turbocharged in May 2020, when I first showed Ben the early stages of CyberBrokers art. When we started chatting about the direction of CyberBrokers, one important thing continued to come up: we wanted it to be stored on-chain forever. We became obsessed with the idea of adding the most complex and detailed art possible on-chain. That decision informed the art style in the beginning, and how we could get the most detail possible in an SVG format.

As far as our lore, we were inspired by Ready Player One, Snow Crash, and Neuromancer. Our Creative Director Chris is a huge William Gibson fan. Plus, we took a heavy dose of blockchain and tried to imagine what our lives might look like in a couple of hundred years. 

What makes CyberBrokers unique?

It’s hard to choose, but I’ll list the first few that come to mind:

  1. First, CyberBrokers are stored entirely on-chain, in a lossless compressed format that maintains full data integrity. We developed the compression and storage algorithms from scratch, allowing us to store art with exceptionally high fidelity at 1/4th of the storage space and costs. All CyberBrokers can be reconstructed from data on-chain using both on-chain and off-chain decompressors, and will exist permanently within the Ethereum ecosystem, forever. This feat was not easy nor cheap, but despite the challenges, the on-chainness of CyberBrokers has been a mission-critical value since the beginning. We wanted to build something permanent, allowing owners to truly own it.
  2. Second, our universe is centered around lore that is released regularly as chapters and interweaves with our NFTs. We take real-time feedback from our community on things such as plot direction, making it a collaborative, creative process. The Quests also coordinate with the plot! Here is a short snippet of our backstory to help you fall down the rabbit hole: “The earth is frozen. Locked in a modern ice age. The world governments had come together with a plan to save humanity by moving everyone into the metaverse. It had been called “The Paradigm Shift”. The first ten thousand volunteers, ready to light the way, were called CyberBrokers. Everything went wrong. Two centuries later, a complacent human race copes with a great awakening. This is the story of The Paradigm Lost.”
  3. Third – and I briefly mentioned this – the CyberBrokers artwork is comprised of art layers in SVGs that allow them to be composable. For example, you can right-click “save as” and literally undress or redress your Broker, turning off or on each individual layer that it is comprised of. Owners have even played around and created their own layers for fun! Our community has loved this feature and has created some really cool tools to make layer-changing easy.
  4. Last but not least, we are very permissive in our licensing. In summary, we granted everybody a full commercial license to do whatever they want with the likeness of their specific CyberBrokers. We can’t wait to see what types of creative endeavors spin out of it!

What are some of the different classes of CyberBrokers?

CyberBrokers have many different traits, but two of the primary ones are the 6 Classes (which include Founders, Creators, Services, Warriors, Explorers, and Leftovers) and the 51 Talents. Don’t worry, I won’t list out all 51 here, but some of my favorites include Cammers, Degens, and Chefs. We feature a new talent on Twitter every day, so stop by and see what makes each so special. If you’re in the mood to read up on each one’s bio, check out the collection on OpenSea and filter by Talent.

What added value have CyberBroker holders had already?

We fully believe in the motto our community has coined, “Less floor, more lore.” We are just about one month out from launch, and although it is amazing where the overall price value is at right now, its not something we focus on.

Beyond that, there are several community-focused initiatives we have launched, or will launch, that we are excited about. 

I mentioned this, but we have kicked off Monthly Quests where the CyberBrokers community, and even non-holders, participate in complex virtual puzzles to unlock new content. After our most recent Quest, participants were airdropped one of two Mech Arms, which will lead to mech crafting at the close of Quest Season 1.

We also are excited to launch our Community Fund in the near future. It’s important to us that we support the community and creators to build around and on top of CyberBrokers. In order to do that, we are allocating some of the funds we have raised specifically for community members to pitch us CyberBroker ideas. If our team and other community members love it, we are going to pay them to actually build it.

The last one I will mention is a Lark exclusive. We are creating a digital comic book series based on the CyberBrokers characters and lore. The first Issue will be released in a matter of weeks, so stay tuned!

We have so much more in our pipeline, but as we always say, we like to under-promise and over-deliver. 

What comes next for CyberBrokers?

I’ll leave this one on a bit of a cliffhanger since I mentioned a few things in our pipeline on the earlier question. One thing is for certain: we will continue building out our three core pillars of content, collectibles & gaming in a way that is innovative and stays true to the philosophy of Web3. As a metaverse-native brand, we want to be interoperable and collaborate with other projects and creators as much as possible, extending beyond our universe to make something really exciting. Fostering our community will always be at the forefront of our ethos. Speaking of, we would love for anyone and everyone, holder or non-holder, to join our community on Discord and Twitter. We can’t wait to explore TPL (The Paradigm Lost) with you!

Leveraged Yield Farming by Matt

What is Yield Farming?

Yield farming involves the lending or staking of cryptocurrency into decentralized smart contract-based liquidity pools in order to generate rewards which are expressed in APY (Annual Percentage Yield). Rewards typically come in the form of interest from lenders, a percentage of transaction fees or a governance token. 

The practice of yield farming became hugely popular during what came to be known as the DeFi summer of 2020. It was a period that witnessed hundreds of new protocols emerge, many offering eye-watering APYs to investors seeking alternatives that would provide them with a higher return compared to what they could achieve in traditional financial markets. 

Compound paved the way in 2020 by launching its governance token (COMP) which distributed weekly rewards to lenders and borrowers on their platform. A flood of other protocols soon jumped on the bandwagon with returns and risk profiles varying greatly from platform to platform. 

At the time of writing, the TVL (Total Value Locked) in yield farming protocols is $215 billion with the vast majority of activity taking place on the Ethereum network.

What is Leveraged Yield Farming?

One of the biggest issues with DeFi relates to capital efficiency. Specifically, users have been unable to borrow more than they put up as collateral. Let’s say someone puts up $100 of value, is able to borrow $50 against that, then deposits that $50 into a farm. The reality is that they would have been better off just putting the $100 into the farm in the first place as their earnings would be greater. Leveraged Yield Farming (LYF) fixes this by allowing for better capital efficiency by making undercollateralized loans accessible, meaning users can borrow more than their available principal.

In a nutshell, LYF combines regular yield farming with the ability to borrow external liquidity which can then be used to increase a user’s farming position, enabling them to earn multiplied yields. Lenders provide their single assets and in return receive some of the highest and most sustainable yields in DeFi. These above average yields are achieved due to the high utilization rates in the lending pools.  

Although LYF loans are undercollateralized, an important feature/safeguard exists. Unlike regular DeFi platforms where borrowers can do whatever they want with funds that they borrow, LYF platforms do not allow borrowers to withdraw borrowed assets from their protocols. The usage and return of the funds are kept exclusively in-house and are tightly controlled by liquidation mechanisms.

Risks

Leveraged yield farming essentially carries all of the same risks as traditional yield farming but with an added kicker.

  • Risk of impermanent loss. This is the risk associated with depositing dual asset pairs into DeFi liquidity pools, usually in a 50:50 ratio. Essentially, it’s the difference in value between depositing two different assets into an AMM (Automated Market Maker) versus simply holding onto those tokens independently in your wallet.
  • Risk of smart contract exploits/hacks and rug pulls. Unfortunately, there is a growing list of incidents that have occurred amounting to over $1.5 billion in losses. For an up-to-date list of exploits readers can check out this link
  • LYF carries with it the additional risk of liquidation. If the price of the token or base currency falls far enough, there is a chance that a user could lose all of their funds. This is similar to margin trading in traditional finance where users borrow money from a broker to buy stocks. If the stocks fall low enough, the investor can have their position liquidated.   

Leveraged Yield Farming Platforms

Let’s take a look at two of the more popular LYF platforms.

Alpha Homora

LYF is a concept innovated by Alpha Finance Lab. Alpha Homora, deployed on Ethereum in October 2020, was developed by Alpha Finance Lab and was the first leveraged yield farming project in DeFi. The platform now operates on Avalanche, Fantom and Binance Smart Chain (BSC) networks as well. 

Users can participate in Alpha Homora as yield farmers, liquidity providers, ETH lenders, liquidators, and bounty hunters. ETH lenders can earn high interest on ETH. The lending interest rate comes from leveraged yield farmers/liquidity providers borrowing these ETH to yield farm/provide liquidity.

The platform currently has a TVL (Total Value Locked) of $639 million.

Alpaca Finance

Alpaca Finance is one of the largest lending protocols operating on both the Binance Smart Chain (BSC) and Fantom networks. Alpaca has its own native utility token called $ALPACA which is a governance token for community voting and it can also be staked on the platform. Alpaca launched in March 2021 and was a fair launch project with no pre-mine, pre-sale or private investors. The platform currently has a TVL of $866 million.Alpaca recently launched their ‘Automated Vaults’ service along with optional insurance cover via their partnerships with Nexus Mutual and InsureAce. The platform aims to offer some of the highest and most secure yields in DeFi.

Final Notes

Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.

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See you next time!

Lark and the Wealth Mastery Team

Legal Disclaimer

TCL Publishing ltd (director Lark Davis, owner of Wealth Mastery) is not providing you individually tailored investment advice. Nor is TCL Publishing registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. TCL Publishing is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.

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