Recently, I wrote about how I like the Fantom ecosystem.
Here's my post explaining why I find $FTM interesting:
@tombfinance has a token called $TOMB, which is pegged to the value of $FTM. The peg deviates quite a bit at times, but in the long run, it should trend towards the value of $FTM. You might be wondering why one would need a token that’s pegged to the value of $FTM.
Why not just use $FTM instead? The general idea is to create a mirrored, liquid token that can be moved around and used for transfers and payments. Since a lot of FTMs supply will likely be locked up in staking to secure the network.
See their explanation:
- Then in the future, when TOMB > FTM, then you can redeem TOMB using TBONDs
Here’s an example:
Suppose TOMB = 0.8 FTM currently. You know that eventually it will go back to being >1 FTM.
So you could benefit from this in 2 ways:
- Buy TOMB at 0.8 FTM
- Sell TOMB at 1.15 FTM
Profit = 1.15 - 0.8 = 0.35 FTM (~43%)
Method #2 (from docs):
- When TOMB = 0.8, burn 1 TOMB to get 1 TBOND
- When TOMB = 1.15, redeem 1 TBOND to get 1.105 TOMB
In the example above, you spend 0.8 FTM, but when you redeem your TBOND, you get back 1.15 * 1.105 = 1.27 FTM.
Profit = 0.47 FTM (~58%).
Clearly, method 2 has a higher ROI, which incentivizes people to buy $TBOND and this should help stabilize the peg. tl;dr: when the peg is below (TOMB < FTM) you should buy TBONDs. Now let’s discuss some strategies in the TOMB ecosystem that you can use to profit
Strategy #1: $TOMB - $FTM LP + farm LP tokens (500-1000% APY) 1. Buy TOMB on SpookySwap 2. Provide liquidity to the TOMB-FTM pool 3. Go to Tomb “Cemetery” & stake your TOMB-FTM LP tokens. You will earn TSHARE (~200% APR) 4. Stake this TSHARE in the “Masonry” (~200% APR)
Strategy #2: $TOMB - $FTM LP + autocompounder (500-1000% APY) This is like #1, except simpler + it will auto-compound. 1. Buy TOMB on SpookySwap 2. Provide liquidity to TOMB-FTM pool 3. Deposit TOMB-FTM LP tokens to an auto compounder like @beefyfinance
Strategy #3: Delta neutral farming (400%+ APY) Same as strategy 2, but you also short FTM for an equivalent amount. This is a great strategy if you don't want exposure to $FTM price. I wrote about this one here:
Strategy #4: Arbitrage the $FTM - $TOMB peg (opportunistic, variable returns) 1. When TOMB < FTM, Buy TBOND 2. When TOMB > FTM, Redeem TBOND, purchase and stake TSHARE. I explained the mechanics of this above.
I found the $TOMB mechanics pretty complicated initially, but it's a good farming opportunity if you're bullish on $FTM. I felt there wasn't a clear, simple explanation for it so I tried my best to do that here. If this helped, please like / RT - help a farmer out