Project Spotlight: Crunchy – DeFi As A Service
In this text-based interview, we look deeper into Crunchy Farms and their DeFi as a service project, which hopes to foster rapid DeFi growth on Tezos.
Disclaimer: DeFi is high risk and the following article contains no financial advice. It is recommended that thorough research is undertaken on any DeFi/blockchain applications, utilizing multiple sources, before participating with any blockchain projects, or tokens in this space. Read our full disclaimer here.
Crunchy is a Farming/DeFi as a service project coming out of Tezos. Other projects are able to tap into the advanced Crunchy Farming/DeFi toolset and pick and choose different features to implement into their farming and DeFi projects.
Some of the features available will be a first on Tezos and Crunchy have innovative solutions such as ‘meat lockers’, ‘slow cookers’, ‘pie slicers’, ‘token blenders’ and ‘egg timers’.
If this all sounds confusing, don’t worry as Crunchy has put together one of the more comprehensive documentation pages here, where these solutions are explained.
The farming solution allows Tezos-based projects to ‘Create configurable farms for users to stake LP tokens and receive rewards.’
In another example, the Pie Slicing solution allows users to: ‘Slice an NFT into fungible FA2 tokens. Buy them. Trade them. Sell them. Swap them. Airdrop them.‘
Crunchy basically offer a full suite of products for projects looking to start on Tezos in the DeFi space. In return Crunchy take fees in the form of a flat fee + % of deposited reward tokens. The flat fees are paid in CRUNCH and projects have the opportunity to burn more CRUNCH in exchange for a lower % fee.
CRUNCH is the utility token of the platform and crDAO (Crunchy DAO) is the governance token. The initial capped supply of crDAO is just 12,000.
‘Initially users will be able to obtain CrDAO by earning it on one of three yield farms. There will be a XTZ/CRUNCH QPT farm that yields 5,000 CrDAO. There will additionally be farms on XTZ/KUSD QTP and XTZ/wWBTC QTP that will yield 2,500 CrDAO each.’
Flash Sale and Pre-Sale
Back in early May a flash sale was conducted which sold out and $7 million CRUNCH was purchased. Soon after, also in early May a pre-sale was conducted and 18,900,000 CRUNCH was purchased as 1 XTZ = 100 CRUNCH, therefore 189,000 XTZ was raised.
All proceeds from the presale were used to fund the CRUNCH liquidity pool on Quipuswap to help bootstrap the project. Users who participated in the presale received 50% of the CRUNCH after purchase and 50% were locked for another 30 days and unlock on June 9th.
Soon after the unlocking of 50% of the presale tokens farming is expected to take place.
The Crunchy Interview
What is the team behind Crunchy?
Currently, the team is officially just me. I do have a few others helping out behind the scenes, so it’s possible they may become official team members at some point.
What inspired you to create Crunchy?
I sort of stumbled into the Tezos DeFi community – which is brand new and gaining a lot of traction – and realized that there are a lot of projects out there and people with good ideas who lack the means to implement them.
Writing good smart contracts is not an easy task – just look at all the contract hacks and issues EVM has faced. Small mistakes can have serious and costly consequences.
On top of that, new tokens were popping up every day. And people were literally throwing money at them with no regard or idea if it was legit. And yeah some were scams and some rug pulled.
So I guess it was really those 2 things together, the need projects had for DeFi building blocks and the need users had for some ways to measure if projects and tokens can be trusted, are what inspired me to create Crunchy. And the idea came together quite quickly.
I would say it went from a passing thought to having the wiki up and generating interest in a matter of a couple days.
What is the purpose of the CrunchyDAO in the Crunchy ecosystem?
There will be a crDAO token which will be able to be farmed on one of 3 farms. Once all crDAO are farmed, the DAO (or Crunchy DAO) is formed of all crDAO token holders. The purpose of the DAO is to help guide the direction of Crunchy.
The DAO will also have a treasury role in that they may decide with a passing vote to mint more crDAO, they may vote on and adjust the Crunchy service fees, and the DAO will be the custodian for all paid service fees and will be able to propose and vote on what ultimately happens to those fees.
Is there an equivalent to Crunchy on other platforms i.e. Ethereum/Binance Smart Chain? Pancake swap etc? Or is Crunchy much more than that
There is not a direct 1:1 equivalent that I have seen, though there certainly could be and I just haven’t seen it. Some aspects of Crunchy as similar to other platforms for sure. Some aspects as similar to Pancakeswap and all the pancake swap clones for example.
Our Meat Lockers are a similar concept to what Unicrypt offers in their Liquidity Lockers. Unicrypt also offers Farming as a Service. And there are some standalone Ethereum apps that allow you to fractionalize an NFT, to name a few examples.
Other farms such as ‘Farm’ and ‘Tezonians’ have started to use Crunchy as a base, what exactly does this entail and what features do they use?
$FARM and Tezonians are both utilizing our white label service for their farms. What this means is the power of Crunchy contracts + their branded UI.
Crunchy provides the contract deployment, setup & initialization, and assistance with connecting their UI to the blockchain and the contracts. Their teams do the UI and design, marketing, etc.
How does other farms using Crunchy benefit the Crunchy eco-system potentially Crunch holders?
Crunchy will collect a service fee on most products and services. Fees will be in the form of a flat fee (of CRUNCH) + a percentage. For farms this percentage will be a percentage of the farm rewards.
The structure will also be tiered; spend more CRUNCH upfront and get a lower percentage fee. Once the crDAO is fully formed, crDAO token holders will be able to propose and vote on what happens to these collected service fees.
Is there a fee these external farms have to pay to use the Crunchy ecosystem?
Yes, most of our services will carry a standard nominal fee, with a tiered structure where you can get a percentage discount by spending more CRUNCH upfront. Tentatively the structure is going to be:
- 100 CRUNCH + 1.5%
- 1,000 CRUNCH + 1.0%
- 10,000 CRUNCH + 0.5%
We are providing all of the contracts, UI, maintenance, feature upgrades, etc.
White label deals have a higher fee and are negotiated on a case-by-case basis.
Does Crunchy get any fees from other farms using Crunch in their systems?
No, CRUNCH is out there in the market, free for anyone to use. If someone wants to use the CRUNCH token in their project we would be flattered and certainly would not charge them for using the token.
When does farming start? What kind of farms are you opening first?
June 9 is when the other half of presale tokens unlock, so farming should hopefully start soon after that. The first farms we will run ourselves are farms for the crDAO token. This will be across 3 farms on XTZ/CRUNCH, XTZ/KUSD, and XTZ/wWBTC.
Do you have any collaborations with any other Tezos DeFi/NFT teams etc? If so do you have any plans to interact? It was mentioned you guys were involved with the SOIL team and Tezonians? Anyone else in the pipeline?
Well my full time day job is working as a Senior Engineer at TQ Tezos. I work on a number of NFT related projects there, including OpenMinter. I’ve also authored TZIP-021 which is the rich metadata standard for FA1.2 and FA2 tokens.
In DeFi land I have had a number of projects interested in the presale contract that Crunchy used. I am doing the presale contract for GOeureka and am a technical advisor to them.
Back to Crunchy, I have had several projects reach out interested in utilizing some of the services that Crunchy will offer. Some are waiting for them to launch on the site, and some will be using our services white labelled – which is Crunchy contracts + your UI.
We are also doing white label with SOIL right now. That is live and running. We’re also going to be doing white label with Dos Esposas Restaurante. Tezonians will be using our services (as they mentioned on twitter), and that is also a possible white label deal.
The $WEED token project has announced they will use our services. Bazaar announced they will use our services. I have had discussions with an upcoming IDO platform looking to use the Meat Lockers.
I am sure others have said they will use Crunchy and I just can’t recall them all right now. This is what I can recall off the top of my head. I constantly get DMs from people and projects interested in what we’re doing.
Why did you want to start with such a very low supply of CrunchyDAO?
I want it to be a rare supply because I want it to be valuable enough that only who really care and have the desire to be active and take part in the DAO will seek to obtain it.
Some of this model I am also following what Yearn did with respect to distribution of YFI across multiple farms including stablecoin farms, limited supply, etc. I think the model worked very well there and can here too.
What kind of governance actions can CrunchyDAO holders take?
They will be able to propose and vote on service fee changes, what happens with collected service fees, minting more crDAO, user incentive initiatives (there is a fairly large pool of CRUNCH for user incentives), and ultimately even guide the roadmap.
Do you have any plans to interact with NFTs/Games within the Tezos ecosystem?
As I think you know I am a partner in Chain of Insight and we’re currently running the Project Uanon puzzle game. Chain of Insight is gaming focused so I’m always going to have interaction with the gaming part of the ecosystem.
As for Crunchy, we have our Pie Slicer which will allow anyone to deposit an NFT and receive back a supply of fungible tokens that represent shards of that NFT. This opens the door for all kinds of new economies and interesting things beyond the obvious just trading them like tokens.
Though that is interesting in itself. High value art NFTs are a prime and obvious example of something you might slice. But I think games can really benefit from this too. Think for example of a game with parcels of land that are NFTs and people own these parcels.
With Pie Slicer, someone could take their parcel of land, slice it up and have a community own that parcel instead of just an individual.
They could place a DAO then around the slices and conduct proposals and votes on what to do with their collectively owned parcel. This is one example, the possibilities are pretty endless.
We’re also going to have a token Blender service. This allows anyone to create a recipe of input tokens in a certain ratio yield an output token.
Classic Tezos example here, you’ve got a BEEF token, a CORN token, and a SALSA token. You blend them together and create a TACO token. But I think this is potentially a great thing for games too.
You can have in game NFTs of base items and resources that users collect and then allow them to forge them together in various way using the Blender service to yield new in game items.
In the token distribution does the 40% user incentives include things like farming yields?
Potentially yes. The 40% is not fully planned out exactly what all the incentives will be or how much. Bounties will be a part and potentially farms that yield CRUNCH will be a part too.
In the docs it mentions the ability to create your own farm easily… Could you please elaborate a bit more on this? Will Crunchy in effect become a Tezos farm creation tool, where we will see many different farms popping up all with different names etc? Sort of like a farming hub with all different farms under one roof?
That is exactly correct. And not just with farms, but with all our products and services.
Projects and developers will be able to come and through our self service app, create all of these things for their own needs and goals. And end users will also come to the app to interact with all of the stuff being created. This is what we mean by DeFi-as-a-Service.
Will you be creating any farming metrics tools so people will be easily be able to calculate things like APY’s on each of the farms etc
All the farms hosted on Crunchy will show APY, liquidity, liquidity over time, earnings, earnings over time, top farmers, transaction histories, etc, etc. All the goodies and data you could want.
Anything else in the mix, lotteries, prediction games etc?
Outside of the 5 or so services on the current roadmap, I’m not sure. Lotteries and games might make good user incentives and we might consider them but they’re not really in line with the DeFi-as-a-Service platform.
Although if we allow anyone to come an make lotteries for their projects that would be a DeFi-as-a-Service product.
The simple answer is I honestly haven’t thought about it for 2 reasons, 1) I am focused on the current roadmap and 2) the DAO will help guide future direction and additional products.
Do you plan to expand your team in the future?
Yes quite possibly and almost certainly at some point I will have to; I can’t do everything on my own if Crunchy grows
What’s the best way for people to connect, interact and prepare for Crunchy?
Follow us on twitter, check us out on telegram, and in my opinion the absolute best way is to get in our Discord.
Any final thoughts?
Yes just a HUGE thanks to everyone in the community who believes enough in this project to buy CRUNCH. We sold out the presale in under 2.5 hours, and I was just floored and completely blown away.
None of this would be happening without the support of everyone who has given it.
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