I’m writing this shortly after a 54% drawdown in BTC today, the largest drawdown ever in a crypto bull market! During the blood bath, Ethereum gas prices jumped to 1800 Gwei, which is about 18X the price on a “normal day” in DeFi where gas averages about 100 Gwei.
In light of all this, I thought I’d keep it simple and introduce a familiar DeFi product but on another sidechain of Ethereum, growing in popularity with blue chip DeFi teams like Curve already deploying liquidity pools on it. Fantom is an EVM-compatible chain, meaning developers can build the same way that they would do on Ethereum, and benefit from the same tools and applications, like an automated market maker (AMM) design or using MetaMask as a wallet.
SpiritSwap is a newer AMM forked from the Uniswap v2 code, but launched on the Fantom blockchain where you’ll find you can transact in seconds for pennies per transaction. It does not offer the same security and decentralization as Ethereum, but if you’re already familiar with DeFi on Polygon, this is similar in nature. I don’t risk all of my portfolio on Fantom or SpiritSwap but I’m willing to experiment and try new apps that provide enough reward to justify the risk.
SpiritSwap currently boasts about $72M in liquidity and just had a record day of $87M in trade volume! In AMMs, the more volume, the more fees you earn as an LP. While today is a blood bath in the crypto markets, LPs are benefiting from the increased trade volume.
How to Earn Up to 900% APR with SpiritSwap
Before we get started, please be aware of a few major risks.
- Smart contract risk is always a risk.
- Oracle failure could also contribute to a loss of funds.
- The quoted 900% APR is likely to change by the time one hops into this tutorial. Also the trading volume and the market price of SPIRIT reward tokens are likely to change.
- Fantom is a less secure blockchain than Ethereum. Be aware it is not comparing apples to apples to compare DeFi on Fantom.
- As always, this is not financial advice.
Here’s how to get started!
1 – First, you’re going to need FTM to transact. Similar to needing ETH to pay gas fees on Ethereum L1, you’ll need to buy some FTM from a DEX like Zapper Exchange on Ethereum. It’s about $0.45 on Zapper Exchange.
2 – Next, assuming you use MetaMask, we need to set up MetaMask for Fantom Opera mainnet. Just go here, search Fantom, and click Add to MetaMask.
3 – Now we need to migrate some FTM and maybe another asset (ie ETH) from Ethereum L1 to Fantom blockchain. Go here to multichain.xyz.
- Choose to bridge from Eth Mainnet to FTM Mainnet, depending which asset you send, but be sure to send FTM first! So you can pay transaction fees on Fantom.
4 – Once your FTM or other tokens like ETH or DAI arrive on the Fantom, you’re ready to become an LP on SpiritSwap! If you need to swap tokens, go here to swap for whatever tokens necessary to become an LP.
5 – Go here to the SpiritSwap Farms page.
- Depending on which assets one wants exposure to, you can begin to search for Farms with assets you already hold or want exposure to. You can also rank them by Liquidity, APR, Multiplier, and Fees.
- In this example, I am willing to use my DAI + SPIRIT (the governance token of SpiritSwap) to become an LP to earn an estimated 872% APR at current market prices, liquidity and trading…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
