Adamant enables users to enjoy compound interest income through the “reinvestment” of pledged assets for Polygon ecological users.
Written by: CCC
The rapid development of the DeFi market has brought about a wealth of Lego components and composability that make the market change with each passing day. However, behind this industry’s prosperity, the complexity of products makes it difficult for new users to get started, even for DeFi “old players”. “In other words, the high cost of on-chain interaction has also made the demand for higher returns and capital utilization between different products even more remote. This problem has now become another problem encountered in the development of DeFi. A new bottleneck.
Even for the new public chain with significantly optimized transaction costs and efficiency on the chain, with the development of the DeFi ecosystem, the above-mentioned problems still need to be solved. After all, in the face of massive applications, how can investors more conveniently obtain the dynamic best? Profit is an objective market demand. For Polygon, which has quickly acquired a relatively complete DeFi ecosystem in the past less than a year, and performed well in the rebound after the recent round of sharp corrections, Adamant, the newly emerging project, is precisely to solve this problem in the ecosystem. One problem is that users’ locked assets can still enjoy higher dynamic returns.
What is Adamant?
Adament is a revenue aggregator that obtains the best DeFi revenue by aggregating the resources of the fund pool (including the funds and time deposited in the liquidity pool). Adamant can carry out the “reinvestment” of pledged assets for Polygon ecological users, allowing users to enjoy compound interest income. At present, Adamant mainly provides revenue optimization services for LP users of Quickswap, a decentralized exchange in the Polygon ecosystem. Currently, it has access to about 100 Quickswap fund pools, and recently added access to Cometh and SushiSwap fund pools. By depositing idle LP tokens into Adamant, users can obtain more LP tokens and Quick, which will bring additional benefits.
How does Adamant bring benefits to users?
In a nutshell, Adamant helps users realize income through a fund pool contract with a strategy for maximizing asset returns. Currently, there are three types of machine gun pool strategies: automatic reinvestment of LP tokens, automatic pledge of Quickswap, and giant whale machine gun pool. Users can choose according to their own needs.
Auto-Compound LP tokens (Auto-Compound LP)
The machine gun pool will automatically sell the tokens mined by LP tokens (such as quick) to increase the number of liquidity tokens (LP tokens), so as to obtain the benefits of the number of LP tokens for users.
Quickswap (Quickswap Auto-Stake)
The strategy of the machine gun pool is to automatically pledge quick mined LP tokens to obtain dquick. Through this machine gun pool, users will not only receive quick tokens, but also receive additional quickwap fee income.
Giant whale machine gun pool (Degen Vaults, such as KRILL/USDC vault)
The KRILL/USDC vault will automatically sell 1/2 of the mined KRILL and combine it into more KRILL/USDC LP tokens. Since the contract does not support the redistribution of KRILL, the machine gun pool cannot receive ADDY rewards.
To show the rate of return of Adamant, the APY of stable currency LP can reach 80%+, which is also very good.
Although the logic of this kind of reinvestment does not seem complicated, taking the strategy of automatic reinvestment of LP tokens as an example, it is just claiming income. After the claim is completed, the transaction is exchanged for tokens that provide liquidity, and then liquidity is deposited again. The pool gets more LP tokens. But the difficulty lies in how to determine the best time to compound interest and reinvest. And usually the amount of retail funds is small. From the perspective of cost, Adament, which spends Gas by aggregating a large amount of funds, still has a huge advantage.
Token mechanism
Adamant Finance’s native token is ADDY. There are two ways to issue tokens: pre-sale & pledge. Based on the pledge issuance mechanism of casting 50ADDY for every 1 ETH income, 1ADDY enjoys the underlying value support of 0.02 ETH. At present, the use of ADDY tokens is limited to pledges and does not enjoy governance rights.
Pre-sale
Adamant Finance has been pre-sold on May 2nd, the pre-sale price is 1WETH=500 ADDY, locked for 6 months. Among them, 50 WETH and 50,000 ADDY will be used to provide liquidity to Quickswap, and the remaining 50 WETH will be used for auditing and project development.
Pledge <br/>For every 1ETH income obtained, 500ADDY will be issued. There are two pledge methods to obtain ADDY: pledge LP tokens & pledge ADDY.
Among them, ADDY has three staking methods: Vesting, Staking, Locking
- Staking is the most flexible and can be accessed at any time. Staking through staking can get Adamant fee income.
- Vesting needs to be locked for 90 days, and if it is taken out early, there will be a 50% fine. Pledge through Vesting can get Adamant fee income.
- Locking is the most stringent, requiring 90 days to lock the warehouse and cannot be taken out in advance. Pledge through Locking will get two incomes: handling fee and fine withdrawn by Vesting in advance.
On-chain risk prevention measures
Recently, there have been frequent security incidents caused by lightning loan attacks on the chain. Adamant said that because the project’s vault does not support direct access to smart contracts, projects like Bunny and Harvest will not manipulate asset prices through lightning loans by hackers. , Resulting in the loss of funds in the vault. In addition, the Minter contract will use the oracle to intervene to obtain the weighted average price of the corresponding asset in the past 24 hours and set a price range based on this. After the range is exceeded, the “protection mechanism” will be triggered, which can also avoid hackers or evil The person achieves price manipulation through other means.
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