All About Fantom – A Thriving DeFi Ecosystem
Launched in 2019, the Fantom Opera Network is a decentralized, Ethereum compatible, open-source, Layer 1 blockchain that is powered by the Lachesis consensus mechanism which uses a proof of stake structure that enables transactions to be fast, secure and scalable. Fantom is one of the fastest and cheapest blockchains available and it has seen significant user growth over the past year, particularly in the DeFi (Decentralised Finance) sector.
Their native token is called FTM and it has the following utility within the ecosystem.
- Staking – FTM can be staked to earn rewards and secure the network.
- Payments – FTM is used for sending payments on the Fantom network.
- Governance – FTM is used to vote on important decisions via the staking process.
- Fees – Network fees are paid using FTM, including transaction fees and smart contract fees.
You can buy/sell the FTM token on major exchanges including Binance, FTX, Crypto.com, Kucoin and Gemini to name a few.
The Top Fantom DEX
Launched in April, 2021, the number one DEX (Decentralised Exchange) on the Fantom network is SpookySwap. This platform offers a broad range of services including token swaps, liquidity support and yield farming. It also has a bridge which enables token transfers to/from the Fantom network to the Ethereum, BSC, Polygon, Avalanche, and Arbitrum networks. SpookySwap has a TVL (Total Value Locked) of approximately $1 billion.
To use SpookySwap you will need a MetaMask wallet connected to the Fantom Opera network.
MetaMask by default only supports the Ethereum network. However, when you connect MetaMask to SpookySwap it will automatically configure your MetaMask to work with Fantom Opera. To perform transactions on SpookySwap or on any other Fantom protocol for that matter, you will need some FTM for gas. If you need some free gas to get you started you can visit here.
SpookySwap has its own tradeable governance token called BOO which can be staked to earn around a 40% APR at the time of writing.
DeFi on Fantom
Apart from SpookySwap and the broad range of DeFi products that they offer, there are plenty of other DeFi options to consider.
Firstly, if you own the Fantom token you can stake it directly on the Fantom Foundation website and earn up to 14% APR depending on the length of your stake. This is a great option for those looking for a low-risk, passive income strategy. However, let’s take a look at some of the platforms which offer much larger APRs and support Fantom in their DeFi ecosystems.
Beefy Finance
Beefy Finance is a decentralised, multi-chain yield optimiser that enables users to earn compound interest on their holdings. Through a set of investment strategies secured and enforced by smart contracts, Beefy automatically maximizes user rewards from various liquidity pools, automated market making (AMM) projects, and yield farming opportunities in the DeFi ecosystem. Beefy has a TVL of over $800 million with Fantom accounting for almost half of that activity.
Tomb Finance
Tomb Finance is the first algorithmic stablecoin on Fantom. It’s designed to be pegged to the price of Fantom and bring liquidity and new use cases to the network. The mechanism it uses to achieve this is complex and involves interactions between 3 different…
