24 Jan The Booming Metis DeFi Ecosystem
The Booming Metis DeFi Ecosystem
Friday marked the end of the Metis DAC Staking program. We’re delighted to report that the program was a great success. Users formed more than 800 DACs on the Metis Andromeda network, collectively staking more than 600,000 tokens.
The DAC staking program was always meant to be temporary. It was designed as a way to introduce users to the broader Decentralized Autonomous Company infrastructure that Metis is building, one that will pave the way for thousands of decentralized businesses to form and operate on our Layer 2 network, creating a hub for the entire Web3 economy.
Now here’s the great news: The Metis DeFi ecosystem is absolutely exploding! Metis has partnered with multiple exciting DeFi projects of all kinds. In addition, our Andromeda network is an open protocol, meaning that any DApp may launch on Andromeda at any time, on a permissionless basis, another mechanism that’s powered our network’s rapid growth.
So with DAC staking riding off into the sunset, it’s time to introduce the world to the great DeFi projects on Andromeda, with some of the tastiest rewards highlighted for ease of use. Ape to your heart’s content!
(Note: If you participated in the DAC staking program, you may dissolve your DAC and/or withdraw your assets at any time. At the time of withdrawal, 10% of all users’ rewards will be left behind in the Metis vault; this deduction applies no matter the withdrawal takes place. As documented at the start of the DAC Staking Program, these deducted rewards will be distributed to several different charities identified by the Metis team.
The first such charity is Dona Un Libro Cambia Una Mente. Dona is a Honduras-based charity which provides comprehensive education and literacy programs for at-risk children, focusing on inclusion and supported by some of the best and brightest educators in the region. For more information on Dona, please visit https://donaunlibro.org/. More charities will be announced as beneficiaries on Metis social media channels in the near future.)
Netswap is the first-ever native Layer 2 DEX. It is also the native DEX on Metis Andromeda and an official Metis partner. As a fork of Uniswap, Netswap offers many exciting features that bring a great addition to our DeFi Ecosystem. In a crowded marketplace with multiple contenders, Netswap offers four critically important benefits: fast and cheap trades, built-in leverage swap function (coming soon!), community-driven development, and a fair and open token distribution.
Through a two-phase scoring system, Netswap incentivized the use of the swap and pool features of its DEX, and airdropped the first two rounds of its $NETT token to the DEX’s early users. At Metis, we believe strongly in decentralization and bringing power to the people, so this was a really neat and innovative way to “fair launch” a token and drive adoption.
Beyond the typical swap and pool features of a DEX, Netswap has also introduced farming and staking. For its farms, Netswap is currently offering high APY rewards in the form of $NETT tokens on various trading pairs, when you stake your LP in the corresponding farm. As the company moves further into its roadmap, Netswap will expand its farm offerings to include more tokens. As well, Netswap currently offers staking of $NETT, rewarding stakers in $METIS tokens. This particular round ends on Monday, January 24.
Furthermore, Netswap will soon release a launchpad for the Metis Andromeda Layer 2 ecosystem. The launchpad will serve as a hub for Metis partner projects that want to do an Initial Decentralized Offering (IDO) on Andromeda. Holders of $NETT and $METIS tokens will get early IDO access. Extensive details on the launchpad can be found here.
- Create liquidity pairs (LP) in the “Pool” section of Netswap
- Lock up equal $ amounts of two assets and receive LP tokens
- Earn rewards for providing liquidity
- With farming, you can stake those LP tokens for additional yield
- Rewards are paid in $NETT tokens
- When you make an LP, you are subject to Impermanent Loss
- Simply put, if the value of one asset moves and the other one stays the same (or worse, moves in the opposite direction), when you withdraw your LP, you will have a certain percentage permanently lost
- The liquidity pool buys and sells tokens as people swap in and out of the assets in the trading pair
- Example: if you make an LP with $METIS/$USDT and the value of $METIS goes up 50%, the value of $USDT will still be the same
- In the pool, what has happened is that more $METIS tokens are being purchased and exchanged for $USDT which dilutes the ratio of $METIS:$USDT in the liquidity pool
- As a result, you will get back less $METIS tokens and more $USDT tokens, but also suffer 2% impermanent loss
- Use this calculator to explore: https://dailydefi.org/tools/impermanent-loss-calculator/
Tethys Finance (https://tethys.finance/)
Tethys Finance is an official partner of Metis and a DEX that allows people to: swap (with the lowest swap fee on Andromeda, just a 0.2% fee); provide liquidity; farm with a quadratic scheme (longer farm = more rewards); stake; and track their portfolio.
The Tethys team credits its engineers for creating an extremely optimized DEX to be as fast and smooth as possible, creating the ideal user experience. The native token of the platform is $TETHYS, and it is used as a farming reward and as a single-staking asset. Staking $TETHYS rewards stakers with 0.03% DEX fees that Tethys earns from its trading volume. Another exciting feature in the works is an embedded lending/borrowing solution, similar to the popular Trader Joe DEX on the Avalanche network.
Check out Tethys here:
- Stake LP tokens in any of the following pools to receive additional yield paid in $TETHYS
- Stake $TETHYS to receive a receipt in the form of $xTETHYS
- Receive 0.03% of swap amounts, compounding every two days
Standard Protocol (https://apps.standard.tech/)
Standard Protocol is a cross-chain DEX on Andromeda and an official partner with Metis. As a DEX, it offers swapping, pooling, and farming functions. As well, Standard has a native token $STND, which is used to reward LP providers and farmers.
Standard also has its own algorithmic stablecoin $USM, which users will be able to borrow against assets. The stablecoin and the collateral position (assets being borrowed against) are both owned by the individual, which allows the collateral position to be sold to another user. If one user with a collateral position is bearish on their assets, they could sell that position to another user who is bullish. Standard prides itself on the protocol’s ability to bring the next level of ownership and sovereignty to its users.
Another way that Standard will do this is by allowing the free market to enter the process of liquidating assets. Simply put, Standard allows community members to “hunt” for borrowing positions that have lower value than the amount borrowed, and for the hunter to trigger full/partial liquidations. The hunters get rewarded with a small part of the liquidation fee and this whole process allows the stability of the protocol to be incentivized and protected.
At Metis, we love Standard’s focus on ownership and sovereignty, as it works to usher in the new age of Web3.
Pickle Finance (https://app.pickle.finance/)
Pickle Finance is a multi-chain, multi-layer protocol, allowing users to get the best yields across their favorite chains. Pickle focuses on continued expansion while also building deeper relationships with protocols across each of these chains. Pickle Finance has a well-known brand and a history of establishing great connections across various ecosystems. All of these reasons, along with Pickle’s attractive product offerings, made that project a perfect fit for a Metis partnership.
Pickle’s Jars on Metis utilize an auto-compounding feature to optimize your farming strategy, in a completely hands-off way. Pickle currently offers Jars on both NetSwap and Tethys farms.
Pickle Finance was the second-ever protocol to implement veTokenomics behind Curve. Users can lock up their PICKLE for DILL for up to four years, in return getting a 45% share of the protocol’s revenues. This lock mechanism also lowers circulating supply, driving up buy pressure. It also allows access to DILLDAO, where people can suggest and vote on protocol improvements. DILL also gives the ability to boost the PICKLE rewards users get on their farms.
Pickle also has an amazing community. First, access to DILLDAO gets you in the DILLDAO alpha channel, where many members share important information. Many members in the group have predicted runups in various L1s, and that group strongly suggested Metis as a chain to launch on, paving the way for the Metis-Pickle partnership. This community is also underpinned by the protocol giving back to the DAO. On the protocol’s first birthday, it gave away an NFT to all 800 DILLDAO members. This NFT could be burned for a glass pickle, a pickle poster, and a pickle bandana.
Look for Metis and Pickle to deepen their collaboration as time goes on, introducing new products for Metis users as well as interaction between both projects’ amazing communities.
Beefy Finance (https://app.beefy.finance/#/metis)
Beefy Finance is a multichain yield optimizer. We love Beefy’s product offerings, and the project’s vision of a multichain future that aligns directly with ours, both major drivers in forging a Metis-Beefy partnership. Beefy provides consistently optimized auto-compounding vaults on both NetSwap and Tethys farms. Deposit your LP tokens to the corresponding vault on Beefy to begin auto-compounding your returns, and you’ll be able to achieve huge APYs.
One of the awesome features Beefy provides is the “Zap” tool. For many new DeFi users, the concepts of LPs, farming, and auto-compounding are confusing enough, let alone the actual execution of creating LPs and navigating cross-site to deposit those LPs. This is where the “Zap” feature comes into play.
For any token in a vault that Beefy supports, users are able to deposit a single token through the “Zap” tool, and Beefy will automatically create the LP and stake it in the corresponding vault. As well, when you are looking to withdraw, you can withdraw the LP intact or withdraw the full amount converted to either token in the pair. One of Metis’ core missions is to make blockchain accessible to everyone, and we tip our hats to the Beefy team for this awesome, user-friendly tool. Click here for a walkthrough article on how to use the Zap tool.
Another highlight is the Beefy v2 dashboard with full functionality. The Beefy team has created a more detailed dashboard with graphs, giving users a more holistic view of the vaults. Learn more about Beefy v2 here.
Lastly, Beefy prides itself on its commitment to security. The team goes through an extensive due diligence process before deploying on any platform, asking for timelocks, looking at the distribution of token supply, and asking for multi-sigs when necessary.
Agora DeFi (https://agoradefi.io)
Agora DeFi allows users to lend and borrow select assets on the Metis Andromeda network. Earn yield for lending and pay interest to borrow. As always, do your research on protocols and before borrowing assets from a money market, and make sure you understand the concepts of liquidation and liquidation threshold.
The Agora Money Market is a fork of the popular Compound Money Market, deployed on Metis. It was deployed under a small grant from OpenDAO. Intended to be a full fair launch, there are no private investors, no pre-mining, nor any team allocation. All of the governance tokens are allocated to the community. Within a week, Agora amassed $54 million in TVL, becoming one of the fastest-growing projects on Metis and an official partner. Agora currently supports the top five assets on Metis.
In a relatively short period of time, the Agora team intends to roll out new features that would allow borrowing against yield-generating assets such as autocompounding LPs. The money market also serves as key DeFi infrastructure for Andromeda, and a platform on top of which other applications can be built.
In addition to all of these options, expect to see some of the largest, most successful DeFi projects in the blockchain world deploying on the Metis Andromeda network in the weeks and months to come. We’re so excited for what’s to come.