Sep 132020
 
how to buy sake from sakeswap

This is a guide on how to buy SAKE from Sakeswap, the newest Automated Market Maker (AMM) on the block with an extensive initial farming period to distribute the SAKE token to yield farmers and the broader community.

The idea behind SAKE is very similar to SUSHI – as you might have guessed, with the success of SUSHI, a lot of clones are coming into the market that promise something similar or a better version of the AMM on their Decentralized Exchange (DEX).

The SAKE team, based out of Asia, is promising an AMM with better fee capture for liquidity providers (LPs) on their exchange. The design follows in the footsteps of Mooniswap from 1inch team which was the first to implement this design and help capture more of the value to LPs away from the arbitragers who trade on these exchanges. This means for the same trading volume, you will earn a higher LP fees on Sakeswap than Sushiswap, all else being equal.

The Sakeswap team is yet to launch their AMM, but the idea would be similar to Sushiswap in that they would migrate the LP tokens to their new exchange. This is a risky endeavor. Yield farmers should make sure they are aware of these risks and unstake their LP tokens before migration if they are unsure of the risks.

How to Buy SAKE

Currently, the best place to buy SAKE is from Uniswap. Uniswap has the highest liquidity pool for SAKE. However, ultimately how you buy SAKE depends on which currency you are starting with.

Follow this guide to make sure you get the best price when buying SAKE:

  • If you already have ETH in your Web3 wallet like MetaMask, simply go to Uniswap and convert your ETH to SAKE.
  • If you want to start with a non-ETH token like LINK, SNX, LEND, YFI, etc. and convert that to SAKE, make sure to go to 1inch first and convert this token into ETH (you’ll get the best price execution there), then follow the step above for Uniswap. If in the future 1inch team integrates SAKE natively, you do not need to do the above step at all, i.e. you can execute everything from 1inch itself.
  • If you are starting from BTC or a non-ETH token, first go to Binance, convert this into ETH, then follow the first step (Uniswap).
  • If you are starting from fiat, first go to Coinbase, buy ETH and then follow the first step (Uniswap)

How to Farm SAKE

In the first few weeks since launch, you can simply farm SAKE instead of buying it from an exchange. This will help you earn SAKE without spending ETH.

Note that as with most yield farming, the SAKE-ETH pool has the highest rewards but also the riskiest due to impermanent loss. Make sure you understand this before farming in this pool. If you want to, then you can first buy SAKE based on the guide in the previous section, and then become a liquidity provider in this pool.

The image below shows all the pools that are available.

SAKE farm has many exchange pairs as you can see above. This reduces APY for farmers, but gives them more options. If you are farming SAKE, make sure you compare the yields to SUSHI as well for highest profitability.

One interesting thing with SAKE farming is that they started with a shorter 5 day “beta” period where the rewards were 0.5x. However, after this period, the rewards will go 10x so that is a drastic increase in APY and returns.

If you want to farm SAKE, keep an eye out on any changes in the pools over time. You can join their Discord for that.

Sep 122020
 
buy YFV

This is a guide on how to buy YFV, a clone of the popular YFI project from Andre. YFV, also called YFValue, is a suite of DeFi financial products, very similar to YFI. The main appeal of YFV is that it is still farmable, unlike YFI, and that it is considered a “cheaper” version of YFI given its lower valuation.

Whether that ends up being the right investment decision against the backdrop of YFI of course remains to be seen. However, as of now, YFV is mostly a YFI clone but may chart its own path in the future in terms of the products it offers.

One big difference currently with YFV vs. YFI is that YFV is still farmable. However, the farming pairs all have YFV as well, so it is risky. There are some Balancer pools, however, that only have 2% of YFV so the impermanent loss risk is much lower than 50% in Uniswap pools but you are still buying YFV to farm YFV.

At the end of this post, we’ll discuss how to farm YFV as well.

How to Buy YFV

YFV currently has liquidity in a number of decentralized exchanges (or DEXes as they are called). This means you need to make sure you are going to the right exchange to buy YFV in order to get the best price execution. This is doubly important for YFV because there are many YFV pairs against other DeFi tokens not just ETH.

For example, there are Balancer pools of BAT and YFV. Sometimes, the execution is better if you are able to convert your ETH to BAT, then use that BAT to buy YFV. This gets complicated to do yourself.

Luckily you can simply use the aggregator 1inch. This will do all the calculation for you and present you a price that finds the best execution in a single transaction. Best of all, it is able to split your order up between the different exchanges.

buy yfv on 1inch

In the example above, we are trying to buy YFV from YFI (i.e. trying to get as much YFV by selling YFI). You can see that on Uniswap you get 1473.7 YFV and on Balancer you get 1492.1. However, if you use 1inch, it will split the order up for you so you get 1528.6 YFV instead, higher than any individual exchange.

We therefore suggest going through 1inch to buy YFV instead of directly buying on Uniswap or Balancer.

If you are starting from BTC or other non-ETH tokens, you cannot use 1inch directly. In that case, convert your other tokens into ETH or another ERC20 on Binance and then use 1inch. If you are starting from fiat, you can buy ETH on Coinbase. We generally suggest using DEXes so you don’t need to go through account creation and KYC.

How to Farm YFV

If you want to farm YFV, you will first need to buy YFV as described above. Then, go to Balancer and add liquidity to one of the supported pools. You will get “BPT” tokens that you can stake to earn YFV.

As of this writing, the active pools are seed pool (USDC, DAI, USDT, TUSD) and BAL, YFI, BAT, REN, KNC, WETH, and LINK. You can find the full list on the YFV site. Remember impermanent loss if you want to farm YFV, or any other token for that matter.

Sep 122020
 
how to buy cream crypto protocol defi token

This is a guide on how to buy CREAM token. Cream is a crypto-financial protocol for lending and borrowing crypto-assets in a trustless manner by providing collateral that covers your loan, built on Ethereum. In the event that someone is unable to pay back their debt, the Cream protocol automatically sells the collateral to cover the debt.

If the above sounds familiar to you, that is probably because it sounds like Compound or Aave (LEND). And it is – Cream as a protocol is pretty much a fork of Compound.

So why should you buy CREAM when you can just buy COMP from Compound? For one, the valuation of CREAM is orders of magnitude less than COMP, so you’re getting a less popular protocol but at a much less price point. Second, Cream supports many more tokens than Compound. For example, the recently popular YFI token can be used as collateral on Cream but not on Compound.

In addition to the above, CREAM token and Cream protocol are a bit more in the Ethereum community’s general field of view at the moment (aka it is currently hot) due to an aggressive campaign of yield farming. You can earn CREAM token rewards simply by putting your capital into the Cream protocol or lending against it.

Finally, a decision to buy CREAM should be centered around future developments, and one of them is an Automated Market Maker (AMM), which is another hot crypto-primitive right now in the DeFi space. While it seems everyone and their grandma is building an AMM right now (we are looking at you Sushi), it can be an interesting profit center.

How to Buy CREAM

CREAM is becoming a popular DeFi token, and therefore its liquidity is fragmented. This means that many decentralized exchanges (DEXes) and also some centralized exchanges list CREAM. As an end user, you want to get the best execution price when you buy CREAM, i.e. the most CREAM tokens for your money. See our guide on buying DeFi tokens without KYC on why we recommend decentralized exchanges.

The best way to find the cheapest price for CREAM is to go through an aggregator like 1inch. You first enter the token that you want to use to buy CREAM and then the output of CREAM. 1inch does the rest to find you the best execution route. You don’t even need to start with ETH – start with whatever token you have.

For example, here we try to convert 1 YFI to CREAM. As you can see, 1inch checks over a dozen exchanges for you and pulls in the best price, while also taking care of the conversion from YFI <> ETH <> CREAM, all in a single transaction.

buy cream on 1inch

In the above example, 1inch is routing your order through multiple exchanges – in this case Uniswap and CREAM’s own AMM. You generally get much better prices this way than simply going to Uniswap.

If you are starting from Bitcoin or a non-ETH token, then Binance might be the simplest way to convert to ETH, and then follow the steps above. If you are starting with fiat, like USD, Coinbase might be the easiest way to convert your fiat to ETH and then follow the steps above to buy CREAM.

How to Farm CREAM

The good thing about CREAM is that you can also farm CREAM with very good APYs at the moment.

To farm CREAM, there are currently 3 mains ways:

  • Borrow or lend your crypto assets on CREAM
  • Stake Uniswap or Balancer LP tokens
  • Provide liquidity on CREAM’s AMM and stake the LP tokens

For example, the above is a sampling of APYs on Cream for their LP tokens on the AMM. As you can see, the pairs are unconventional but that is because they use the yield-wrapped token versions (e.g. yETH instead of ETH) instead of the plain vanilla asset type. This means you gain not just CREAM rewards but also the yield on the underlying asset, not to mention the 0.25% LP rewards.

Sep 122020
 

This is a guide to buy RARI token from Rarible Crypto, an NFT marketplace for art and collectibles on Ethereum. RARI is unique in that it is one of the first mainstream NFT platforms that has issued its own fungible ERC20 token in the form of RARI. The stated goal is to bring more of a community ownership within the platform itself and reward collectors and artists both in addition to the broader NFT community.

In the current DeFi hype cycle, NFTs have received less attention. With the introduction of tokens like RARI, this is changing. Several DeFi enthusiasts and community members are looking into the NFT space and see RARI as a way to gain exposure to NFTs.

NFTs are much broader than ERC20s in that they can represent anything from digital art to in-game items. Therefore, it is not easy to gain exposure to NFTs broadly. NFTs also have unique characteristics like low liquidity and infrequent sales – think real estate more than stock trading. Some rare NFT items may change hands only once every several years, like some of the rare CryptoKitties (founders, first year fancies, etc.)

Also, if you have been an active NFT collector or seller on the Rarible platform, make sure to check if you got any RARI tokens airdropped. The team took the pains to go through active NFT holders and traders’ addresses on Ethereum and airdropped them some RARI at launch. This is much more valuable now than at launch.

How to Buy RARI Token

If you want to buy the RARI token, the good news is it is just like any ERC20 token instead of an ERC721 token, which is the standard for NFT assets. If you are familiar with holding and trading tokens like LEND, SNX, LINK, YFI, etc. then RARI should be similar (you can store it in your MetaMask or Ledger/Trezor for hardware wallets).

To buy RARI token, first go to 1inch to check the price and exchanges. This is because RARI liquidity is currently fragmented so you want to go through an aggregator to make sure you are getting the best price on your trade.

1inch also takes care of any conversion from one token to another. Therefore, you tend to get significantly better pricing via an aggregator like 1inch than directly on say Uniswap.

In the example above, if you are converting 1000 LINK to RARI, then you get 1614.6 RARI on 1inch as compared to 1577.1 RARI on Uniswap.

If you want to buy directly on an exchange, check out Uniswap and Mooniswap that have the most liquidity for RARI at the moment.

If you are starting from fiat instead of crypto, Coinbase is a good onboarding place to buy your first ETH. If you are coming from the Bitcoin world, you could go through Binance to convert your BTC to ETH and then into the DeFi and RARI worlds.

This is the RARI token address on Etherscan. Always double check this to be sure you’re buying the right token.

Sep 102020
 
Buy Sashimi or Farm Sashimi

This is a guide on how to buy Sashimi, or farm Sashimi especially the first 14 days after launch when the rewards are high. Sashimi is a new DeFi token on Ethereum which can be farmed or bought and was released recently.

Sashimi is a Sushi clone but it being built by a non-anonymous team and there is no dev fund. This is important to the community due to way in which SushiChef, the creator of Sushi, sold the development share of SUSHI and exited the project (we think it was not technically an exit scam but very close).

The way Sashimi is intended to work is very similar to Sushi in that you stake your LP tokens, you get 10x farming rewards in the first 2 weeks, and then the team can migrate your LP tokens to a new exchange. To their credit, they did not clone the exchange but rather want to build something with added functionality than simply a Uniswap clone.

More importantly, Sashimi has the backing of the Aelf team. Other than the highly questionable choice of incentivizing SASHIMI/ELF LP token on Uniswap, this should be a good thing. After all, the team is not anonymous and have a real-world reputation if they tried to pull a fast one like SushiChef.

How to Farm Sashami

Currently, there are 11 LP pairs with which you can farm SASHIMI. Following best farming practices in DeFi, if you don’t want to farm with the token itself (since the impermanent loss can be brutal), that’s 9 LP pairs. We will also assume you are less interested in ELF-ETH pair since it already pumped over 100% since Sashimi launch. That leaves 8 major pairs: WBTC-ETH, USDT-ETH, USDC-ETH, DAI-ETH, YFI-ETH, LEND-ETH, LINK-ETH, SNX-ETH.

As we previously mentioned, other than the questionable ELF pairs (but understandable, to be sure) these are all good pairs to farm with. They know their audience – YFI, LEND, SNX are the triumvirate of yield farming right now, and the team has chosen them all for farming, in addition to the stablecoins. They also left out impractical pairs like UMA-ETH and BAND-ETH that Sushi adopted.

How to Buy SASHAMI

You can of course buy SASHIMI directly if you believe in the project or want to speculate on its price. Another reason to buy SASHIMI would be to farm in the SASHIMI-ETH pool or SASHIMI-ELF pool. Remember these are high risk, so don’t be attracted just to the high APYs and be sure you can withstand extreme impermanent loss that may easily become permanent loss.

Currently, the most liquid pool for SASHIMI is Uniswap. You can go directly there and buy SASHIMI with your ETH. However, if you want to do a trade with a non-ETH token, make sure to first check the price in an aggregator like 1inch.

For example, if you are starting with LINK, YFI, SNX, RLC, etc. and want to buy SASHIMI, just go to 1inch first and check the prices (as of this writing, they haven’t natively listed SASHIMI yet but you could check converting to ETH and then use Uniswap).

Important Links

Website: sashimi.cool and connect your Web3 address like MetaMask to view the farms.

Token Contract on Etherscan – always double check against this token when you are buying or selling since anyone can create a fake token with the same name.

MasterChef Contract – similar to SushiChef contract. If you’re technical, always check a diff of this against the SushiChef contract.

Aug 282020
 
 sushi from sushiswap, clone of uniswap

This is a guide on how to buy SUSHI from Sushiswap, or in the early days how to farm SUSHI as well. Let’s look at more details on SUSHI and where it sits in the broader DeFi ecosystem specifically around decentralized exchanges (DEXes).

What is Sushiswap and SUSHI?

Without mincing words, Sushiswap is a Uniswap clone, but with a token. Yes, they want to take on Uniswap, the DeFi AMM (Automated Market Maker) juggernaut head on. They think the token, SUSHI, can provide that competitive advantage as well as initial liquidity migration from Uniswap.

However, don’t be fooled by that simple vision. After less than 12 hours of launch, the protocol has over $270 million locked in its contracts. That’s right, $270,000,000 is sitting in its smart contracts right now, less than 12 hours after launch. Clearly it has attracted some early yield farmers but also hopefully long-term users.

The plan to bootstrap Sushiswap is devious or ingenious depending on your point of view:

  • Give away most of the SUSHI tokens to yield farmers, some of the most active crypto traders and users.
  • Yield farming is done via Uniswap-LP tokens. In 2 weeks after launch, the Uniswap-LP tokens will be liquidated and converted to Sushiswap-LP tokens, thus providing initial liquidity.
  • LP fee is 0.25% and 0.05% per trade goes to holders of SUSHI tokens, thus incentivizing them to hold on to SUSHI tokens as a form of revenue stream based on the exchange’s usage.

In a nutshell, Sushiswap is Uniswap with a token before Uniswap could ever come up with a token. Unlike Uniswap, Sushiswap isn’t VC funded and can move at a much faster pace than VC backed startups.

How to Farm SUSHI

You can currently farm for SUSHI instead of buying SUSHI from the market. You can do this by staking select Uniswap-V2 LP tokens into Sushi staking smart contracts.

Warning: Sushi smart contracts are not audited yet and therefore are high risk. Don’t put in more than you can afford to lose.

You can farm SUSHI via Uniswap-LP tokens of the following DeFi tokens: USDT, USDC, DAI, sUSD, UMA, BAND, LINK, AMPL, COMP, LEND, SNX, YFI. All of these are ETH pairs, e.g. YFI-ETH Uniswap V2 pair. You can go to the sushiswap app to start farming SUSHI.

As you can see above, the APY is quite high – in the 1000%s range. This is not sustainable in the long-term so plan accordingly. Also, for the first 2 weeks, the rewards are 10x so take that into consideration if you want to farm for long or deciding when to start. You also get 2x the rewards on SUSHI-ETH Uniswap V2 LP token to incentivize more liquidity for SUSHI.

How to Buy SUSHI

Instead of farming SUSHI you can buy SUSHI from decentralized exchanges instead.

Currently, the most liquid DeFi exchange in general is Uniswap which trades SUSHI. However, as you can imagine, you can also buy SUSHI from the Sushi exchange. However, you should always check an aggregator like 1inch to make sure you’re not missing a better price. This is especially important if you are going from a non-ETH token like LINK or YFI into SUSHI since Uniswap may not have the best liquidity for all these paths.

Update: Binance has listed SUSHI! You can trade there to save on some of the gas fees from Uniswap (currently around $20 per trade on Uniswap)

Step-1: Go to 1inch and enter the token you want to start with as input and SUSHI as output.

Step-2: Find the exchange path suggested by 1inch. If it is 100% Uniswap, just go to Uniswap instead to trade and save on gas. If it is not 100% Uniswap, then execute the trade directly on 1inch.

Step-3: Connect your Web3 wallet like MetaMask to 1inch and execute the trade. Alternately, just go to Uniswap, connect your MetaMask, and trade there if you are going there directly.

In case you don’t have ETH, you can purchase from Coinbase or Binance.

These are early days of Sushiswap but it is a really interesting project and the entire DeFi space will learn a lot from this experiment.

Aug 192020
 

This post explores the bull case for YFI in a broader crypto bull market. The intention here is not simply a price prediction but to aid in analysis by crypto investors.

Warning: This is a post about the bull case for YFI. The bear case is $0 e.g. with a severe smart contract bug. Please do your own research and never invest more than you can afford to lose. Take this warning seriously.

YFI Basics

At the time of starting this post, YFI was around $5000. Currently, it is $12,000 and climbing, just zooming past Bitcoin. That’s right, currently 1 YFI > 1 BTC in terms of price.

YFI price is currently more than BTC

Before diving further, let us get the basics out first. YFI is a token from the yearn/iearn ecosystem of products launched by Andre Cronje, a DeFi prodigy famous for “testing in production” (there are risks but he moves at a pace unseen in the rest of the DeFi world).

YFI is often called the “Bitcoin of DeFi” for good reason. Unlike most VC-backed projects that aim to dump on retail investors after the initial hype, YFI has its hands clean. There are no VCs to answer to. There was literally no pre-mine. There is no allocation for developers or future team. There was no allocation even for Andre, the developer! (Satoshi vibes anyone?)

You could farm YFI at launch, so the most active DeFi traders who were early into yield farming were the ones who got their YFI. Many of course soon bought on exchanges as well. YFI remains one of the fairest launches and is a really well distributed token. You can read more about YFI token in our earlier post.

YFI Token Economics

Before diving into the earnings and revenue model, let us first look at the token economics of YFI.

YFI token economics is simple: The maximum supply of YFI is 30,000 tokens. You cannot farm for more YFI anymore.

This has been decided via a governance vote, which is a major strength of the ecosystem. The initial indication was that you could continue to farm YFI but the community decided against it. So the maximum YFI supply has been reached for now.

The other important thing to keep in mind is that YFI is a dividend paying crypto token. The dividends do not come from inflation, but rather from earnings that the protocol generates.

Lastly, YFI is a governance token. The holders of YFI have a real say in what proposals are considered by the community and what gets implemented.

YFI Business Model

With the above information, you can treat the YFI protocol and ecosystem very loosely as a company for the purposes of our analysis. The business model of YFI is asset management. To this end, the YFI ecosystem has several products launched and several in the pipeline.

For now, consider just the y-vault. y-vault is a two sided marketplace for capital providers and capital deployers. Let us understand the motivations of both these groups of people to understand how YFI holders ultimately benefit.

Capital Providers to y-vaults

For capital providers, y-vault provides an easy way to gain exposure to the highest yield opportunities in DeFi without having to worry about managing all the details themselves and without having to pay a ton of gas fees at every step.

As an example, consider the following simple situation: you have some idle capital that you want to put to use, say in USDC. You decide to lend it out on Compound for a measly APY but also some COMP rewards. You could probably do better, but you are not that sophisticated in DeFi yet.

Instead, you can simply deposit your USDC to the y-vault and it will automatically shift your money into the highest farming strategies. For example, it may move your money to Aave or continue to farm on Compound, but it might also move your money to Curve yPool and earn CRV to get a higher yield.

As another example, consider a more sophisticated DeFi investor who keeps up with all the latest trends and yield opportunities. Say you discover Curve CRV mining is the optimal strategy for you. However, you only have a few tens of thousands of USDC, so you pay a ton of gas in claiming CRV each time and selling CRV for USDC each period. This fee can be significant over the life of your investment.

Worry not – if you deposit your USDC into the y-vault, it will pool all the capital and make these gas-expensive transactions once for everyone, so you pool the transaction fees as well, thus saving you a lot of money in the process.

Therefore, capital providers to y-vaults have two primary motivations:

  • Not having to worry about finding the best yield strategy and instead letting y-vault give them the best yield over time.
  • Not paying for gas fees with the optimal yield strategy that can significantly lower returns otherwise.

Capital Deployers to y-vault

Capital deployers develop “strategies’ that determine how the capital is deployed. Their job is to come up with better yielding strategies over time with similar or lower risk, so that capital can move towards their strategy. The more capital deployed in a strategy, the more the creator of the strategy makes.

Currently, Andre the founder is creating all strategies and giving them away for free. In the future, you could have more sophisticated capital deployers and strategies across multiple protocols and across spot and derivatives markets.

Strategies can be somewhat complex. Here is a flowchart of how the LINK vault works to maximize yield, courtesy of ChainLinkGod.

This of how efficient it is for someone to just lock up their LINK in this LINK vault and not worry about the strategy and instead just get more LINK over time from yield and protocol incentives.

Once you understand the above business model, it should be obvious how attractive YFI can be. YFI holders get fee from this model. Currently, the fee is set at 0.5% withdrawal fee and 5% “gas action” fee but this can be changed in the future via governance. Over time, y-vaults can become fully functioning crypto-asset managers in a completely decentralized and community-driven way.

YFI Price Model

We model the bull case in this spreadsheet where you can change your assumptions and arrive at a price.

YFI Tailwinds

In a crypto bull market, there is a lot going on for a product like y-vault and the holders of YFI get immense benefits from all the yield farming hype. Remember, even the currently simple strategy for farming CRV on curve has over 100% APY.

  • AUM (Assets Under Management) grow exponentially in an exponential crypto market. If SNX goes 10x, then the SNX locked in the SNX vault goes 10x too, so the 0.5% withdrawal fee is worth 10x.
  • Gas performance fee goes very high as new yield farming opportunities arise. Whenever the protocol harvests a governance token or another yield farming token and sells for the vault’s underlying token, the 5% fee is charged. This can be substantial.
  • Low overhead for the protocol. Andre is a prodigy and his work directly benefits YFI holders.
  • New product launches. There are talks of insurance products. There are talks of a venture-style investment product. Some contracts are already deployed. All these benefit YFI holders in the end. The DAO can be wrapped up within the yearn ecosystem and YFI holders reap the fees.

If you want to buy YFI, make sure to check the price on 1inch before buying directly on Uniswap or Balancer. See our post on how to buy YFI for more details.