What is Fantom? ($FTM) – The Fast, Secure & Scalable, EVM Compatible Network

fantom

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 assets – TOMB, TSHARE and TBOND. A common strategy used on the platform is to create TOMB/FTM LPs and stake them (current APR is 96% and the reward token is TSHARE). You can either sell those TSHARE rewards and compound them into more TOMB/FTM LPs or you can single stake the TSHARES and earn more TOMB (current APR is 396%). Tomb has a TVL of over $800 million.

Geist Finance

Geist Finance functions in a similar way to Ethereum based lending protocols such as Aave or Compound. Geist offers attractive yields to users by distributing rewards in its native token. However, rewards cannot be sold immediately. There is a 3-month vesting period where holders of the reward token earn fees from the revenue of the platform. You can withdraw your tokens at any time but there are penalties. Geist has a TVL of over $400 million.

Hundred Finance

Hundred Finance is a decentralized application that enables lending and borrowing. A multi-chain protocol, it integrates with Chainlink oracles to ensure market health and stability. At present, Hundred supports Fantom, Ethereum, Arbitrum, Harmony and Moonriver chains. It has a TVL of over $200 million. Stable coin yields of up to 30% APR are on offer.

Liquid Driver

Liquid Driver was the first dApp on Fantom offering on-demand liquidity as a service. They offer sustainable yields for providing liquidity to their partners. They support a wide variety of dApps by incentivizing liquidity and they aim to be a one-stop-shop for users looking to generate passive income with their crypto assets. Liquid-Driver has a TVL of over $130 million.

Wallet Support

fWallet is the native wallet for Fantom. With this wallet you can send, receive, stake your FTM tokens and access the Fantom DeFi ecosystem. It is also used to vote on governance proposals.

Metamask is the most popular software wallet and browser extension. Metamask allows you to store mainnet FTM and interact with Fantom Dapps. Fantom support can be easily integrated with your Metamask by adding a custom PRC with the following information. 

Network Name: Fantom Opera

Network URL: https://rpc.ftm.tools/

Chain ID: 250

Currency Symbol: FTM

Block Explorer URL: https://ftmscan.com

Fantom is also compatible with Ledger, Coinbase Wallet, Token Pocket and many others. For a complete list visit here.

Bridging Funds to the Fantom Network

Multichain can be used to transfer ERC-20 tokens from Ethereum or Binance Smart Chain to the Fantom network and vice versa. You can simply connect your Metamask wallet and bridge funds across. Anyswap, which is a decentralised cross-chain swap protocol is also an easy and frictionless option. SpookySwap and SpiritSwap also provide bridging services as already discussed above.

In Closing

Given the fast and cheap transactions available on Fantom, it’s not surprising that the protocol is making considerable progress in the DeFi sector. There is already over $8 billion in TVL across more than 100 different platforms and this figure is certain to rise as highly anticipated new dApps are rolled out in 2022. Ethereum compatibility is a major feature, with an increasing number of developers now choosing to build their protocols and deploy their assets on Fantom.

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