We will be hosting a weekly tutorial on the most compelling opportunities to consider yield farming, written by our friend DeFi Dad, an advisor to the Defiant and the Chief DeFi Officer of Zapper. The goal is to expose more Defiant readers to new DeFi applications and their associated liquidity mining programs.
Background on Protocol: Over the years, you’ve probably heard friends and family call you both a degenerate and a genius for being in crypto. While the ups and downs of bull and bear cycles create very different market conditions, one truth we all tend to agree upon is that over the long run, crypto will grow! It doesn’t matter what maximalist tribe you belong to, we all fall under the larger umbrella that is crypto.
If you were ever asked “will the total crypto market cap go up over time?” you’d probably say yes. Up until now, making that bet has meant patiently DCAing into tokens over the long haul and hodling through the worst of bear markets, but what if an index gave you real-time price exposure to total cryptocurrency market cap?
TCAP by Cryptex Finance has tokenized that bet! TCAP is a fully decentralized ERC-20 compatible smart contract that tokenizes real-time Total Market Capitalization from all cryptocurrencies and tokens listed on the largest crypto data providers in the world. It’s a new, 200% fully backed, fully collateralized asset that’s both audited and accurately representative of the entire cryptocurrency complex by total market capitalization.
The team behind TCAP, Cryptex Finance, was cofounded by Preston Van Loon, the Founder of the notable Eth2 research team Prysmatic Labs. TCAP provides a unique product for investors to gain exposure to the entire cryptocurrency market. You might even consider TCAP the S&P of crypto. Investors now have an option to gain the exposure to thousands of cryptocurrencies without the risk associated with any one of those particular currencies.
Opportunity: To bootstrap TCAP liquidity, Cryptex offers yield farming rewards with their governance token CTX, currently at a rate of 65% APY for staking the SushiSwap LP from the TCAP/ETH pool. You end up with 50% TCAP exposure and 50% ETH.
Time to Complete: 5 mins if paying the recommended FAST gas price on gasnow.org
Gas + Protocol Fees: Based on the FAST gas price on gasnow.org currently between 40-80 Gwei with ETH at $3200-$3400, I would estimate paying the following gas fees.
- Adding liquidity to TCAP/ETH LP = $60 to $130
- Staking LP = $30-$50
Risks: As always, this is not financial advice and you should do your own research. Consider all these risks if you choose to participate in the Cryptex liquidity mining program.
- Smart contract risk
- Oracle failure
- Liquidity crisis
- Systemic risk in DeFi composability
- Estimated APYs can go up or down with the price of CTX and pool liquidity
- If I become an LP for TCAP/ETH, I’m likely to experience impermanent loss.
- First, one must become a liquidity provider for the TCAP/ETH pool in SushiSwap. One can add liquidity (aka zap in) to the LP using any token on Zapper Pools. Here’s a link to add liquidity on Zapper.
- Next, go to the Zapper Farm tab and search TCAP.
- To start earning the CTX governance token rewards, flip Show Available to Stake and then click on the Stake button in green for the TCAP/ETH pool. One will be required to give approval for depositing the LP.
- After the first MetaMask Approval confirmation, click Confirm once more to deposit the LP.
- Lastly, you can return to this dashboard on Zapper to track your earned TCAP/ETH LP rewards but you can also Claim CTX rewards or Unstake in the future.