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DeFi Slate Family:
After a huge collapse in the #DeFi markets over the last 7-days, we are seeing signs of recovery.
The good news is, price action won’t stop us from building, building and building more.
Recently yield farming has become extremely intense, and honestly confusing.
And thats where Akropolis comes in very handy. The protocol & team makes using the platform simple and effective.
We’ve got a new sheriff in town about to open up their pools for everyone after a smooth & audited guarded launch.
Welcome to the DeFi Metropolis, Akropolis👨🏽🌾
Tap In Tuesday: Akropolis 101
Akropolis has been working mighty hard ahead of their recent Delphi mainnet launch. The team has built a platform with quite a few use cases, giving the honest farmer plenty of room to work with. Here’s the quick ‘n dirty on what Akropolis can do:
Delphi is effectively a yield farming tool, meant to bring all the services of other platforms to one place. Another term for this is an aggregator. With very little technical experience needed, users can operate and control high APY % savings accounts, dollar cost averaging (D-C-A’ing), and yield generating farms.
Using Delphi is pretty simple actually, head on over to the protocol and click ‘Save’ on the left.
Then, all you need is DAI or USDC and you can deposit into the pools to earn an APY much higher than your local bank account. Just press the ‘Allocate’ button and enter the amount of DAI, USDT, USDC or BUSD that’d you would like to enter in the pool!
Unfortunately, Delphi is still in its guarded launch for another 36-48 hours…However, as soon as these caps are lifted, you’ll be able to get fully immersed in the pools!
If you’re an $AKRO holder already, you can stake your AKRO by pressing ‘Stake’ on the left side of the main menu page & you’ll be redirected to this screen below. Again, the caps will be lifted very very soon so you’ll be able to fully get in these pools. The staking rewards for each epoch can be found here.
You actually earn $ADEL, the governance token of Akropolis, as well as $AKRO tokens. A double whammy for you stakers.
Oh btw, you should join the Akropolis discord, I’m quite active in there!
What is Sparta?
(Directly from the wiki, here)
Sparta is a credit pool where users can get access to loans without the need of large collaterals. Its mechanics allows the Sparta users to get an undercollateralized loan, as well as provide funds at a percentage of interest.
Sparta model solves the over-collateralization problem in DeFi. With it, users can get access to a loan with 50% collateral. One of the advantages of our pool is that we have a collective responsibility and staking guarantee approach. Because the users are being rewarded for voting for good participants, they act as native risk assessors in the system, supporting its stability.
Additionally, we implemented a bonding curve (Continuous Token Model with ASPT) to our pool. This gives an additional incentive for users to join the pool at the start of it. It also allows them to leave the pool at any moment without the problem of locked funds due to lack of liquidity assets.
But what is a bonding curve?
A bonding curve is a mathematical curve defining the price/supply correlation. A user enters and exit the DAO by buying and selling ASPTs on a price determined by this curve.
Using Sparta To Earn Yield / Passive Income
The current yield farming craze is upon us with new pools popping up boasting 4-figure APYs on unaudited contracts. Participating in yield farming requires capital, knowledge, effort and risk management. In this section, we’ll show you how you can use Sparta to kickstart your yield farming.
As mentioned above, Sparta solves the over-collateralization issue in DeFi, giving users the opportunity to get a loan with just 50% collateral. This works because there is a “community grant” in which members of the DAO put up the rest of the collateral to fund the loan. So how does this help you get started on your farming career?
Well, you can use your loan to invest in yield producing pools.
Say you have 1000 DAI and you want to take a loan of 2000 DAI to have double the amount of capital to generate yield with - here’s where Sparta comes in handy. When you arrive on the Sparta UI, you can opt to deposit your 1000 DAI in passive, lower risk lending or, more active higher risk lending. View more detailed, step-by-step instructions here.
We will touch on this later in this piece. When you complete your deposit, you are then able to get a loan for double your collateral (in this case, 2000 DAI). Currently, the liquidity pool is at ~ $143,000 in total liquidity with 137 members of the DAO.
Now that you have your 2000 DAI, you can go ahead and use that DAI to earn yield! One suggested way to do is to go to Delphi & use any of the DAI savings pools to earn passive income. Another way is to go to iearn curve deposit & deposit your DAI to yCRV, then head to yearn.finance vaults & deposit that yCRV into the vault!
You are able to earn yield on 2x the original DAI you had.
Of course, the second half of getting a loan is repaying the loan. Ideally in this example, you can use the 2000 DAI to get a return of 100-200 DAI over 60-90 days & return your principal 1000 DAI + small interest, and keep the yield you generated!
Because of the under-collateralized nature of the loans, there is a strict procedure for repayment. Loans will be liquidated 90 days after the issuance and the deposited collateral will be burnt and shared amongst the stakers who secured the loan.
Using Sparta To Bootstrap Projects
New businesses pop up everyday looking for funding. There are many options out there for funding, but as of recently the DeFi funding options are extremely enticing. Especially when dealing with teams who are strapped for capital in the beginning (most every team).
So, how can Sparta help?
Think of taking an under-collateralized loan as a business owner like a VC pitch, except instead of pitching to VCs, you’re pitching your reputation and good-will to the community of ASPT (Sparta’s governance token) holders in an effort for them to help collateralize your loan.
This opens up opportunities to those who exist in underbanked nations or societies, as well as those who are looking to bootstrap a business with very limited capital. In many nations where banking is a privilege, not a right, Sparta comes in handy. By offering a permissionless, borderless platform with access to capital and decentralized banking, Sparta gives the power back to the people.
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Check out some previous interviews:
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Wiretap Wednesday: Farming $SUSHI Like A Chad Degen
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