Crunchy Showcases Its Core Strength With Self-Service Yield Farm Setup: 50+ Farms Up In A Few Days

by | Jul 5, 2021 | DeFi, Latest

Crunchy showcases its core strength with self-service yield farm setup: 50+ farms setup in a few days. Creating a LP yield farm pair on Tezos has just become as simple as filing out a form.

Note: XTZNews provides information for public visibility only and does not endorse any applications, systems, cryptocurrencies, or tokens mentioned on the website. Any information, or content found within the website XTZ.News is not intended to be investment or financial advice. Find our full disclaimer here.

Crunchy Yield Farms

Crunchy Network, the provider of DeFi as a service, just took another giant step for Tezos DeFi (Decentralized Finance). DeFi applications are financial applications that work through smart contracts on a decentralized blockchain without the need for a third party. This way 2 parties can interact according to preset rules without the need to trust each other.

The DeFi fire starter on Tezos was the launch of Quipuswap which gave birth to one of the first crucial components of DeFi that really accelerated Tezos DeFi as a whole.

With Quipuswap live, we have a decentralized exchange where anyone can simply set up trading pairs to enable trading these tokens. Without the possibility to trade tokens, price discovery is impossible and no one will assign value to tokens.

Once Quipuswap was live and enabled trading of any Tezos-based token, a lot of projects launched on Tezos that distributed a large variety of tokens through airdrops, presales, and yield farming distribution. It’s undeniable, with the birth of Quipuswap a vibrant market started to grow swiftly. Very soon after this, yield farms started to launch. SalsaDAO being the first of many.

In yield farms, holders of specific tokens can stake these tokens and earn more tokens. Yield farms are set up for a variety of reasons. Projects can distribute tokens, create incentives for people to provide liquidity, or other creative financial solutions.

For example, holders of token A can stake their tokens and receive more of token A, (or other tokens. For example governance tokens). This way, token A is further distributed as a loyalty reward. Yield farms create a great incentive to hold.

Another common reason to set up a yield farm is the fact that you can use it as an incentive to provide liquidity to trading pairs on decentralized exchanges.

Holders of token A can be required to provide liquidity on Quipuswap for example, and allow the Liquidity Pool (LP) tokens that are obtained by providing liquidity to be staked and earn more of token A. This enables an asset to become more liquid on the decentralized exchange.

Yield farms are currently a big part of the fast-emerging DeFi ecosystem on Tezos. Plenty DeFi farms being one of the biggest, and SalsaDAO the longest-running.

To create a yield farm, you’d either have to be able to launch your own farm smart contract, or be dependent on existing farms to launch your yield farm on their platform.

Crunchy changed that. Creating a LP yield farm pair has just become as simple as filling out a form.

“Anyone can easily create a farm with their Quipuswap pair and reward token. Our farms work with both FA1.2 and FA2 Quipuswap pairs, as well as both FA1.2 and FA2 reward tokens.”

Once the form is filled out, you press “create farm”, sign the transaction with your wallet, and the farm is created. (The wallet that you use, should obviously hold the number of reward tokens that you have submitted in the form for distribution.)

Currently, there are close to sixty yield farms that are live on the Crunchy platform. Some of them with a current yearly yield percentage of over 15,000%. (Before you ape in, make sure you understand the risks of adding liquidity to a trading pair, the risk of rug pulls, the risk of highly volatile young tokens, and the risk of low liquidity pairs, just to name a few.)

DeFi can be rewarding, but it remains a high-risk field to play.

DeFi As A Service

Crunchy Network offers DeFi as a service. And for that service, a fee will be paid by the yield farm creator. To create a farm, you will need CRUNCH, which is the main token of the Crunchy network, and a percentage of the deposited reward tokens will be charged.

This means that for every farm created, a sum of CRUNCH tokens are required and burned by the creation of the farm.

Post Disclaimer

Any content found on this website named is an opinion of the author who produced the content and is for information purposes only. Any information, or content found within the website is not intended to be investment or financial advice. Find our full disclaimer here.