Thread by @shivsakhuja

Recently, I wrote about how I like the Fantom ecosystem, and how I'm bullish on $FTM.

One interesting farming opportunity in the Fantom ecosystem is @tombfinance.

If you own $FTM, here are some great strategies that can yield 1000-2000% APY.

👻 Explained below 👇

1/ Here's my post explaining why I find $FTM interesting:

https://twitter.com/shivsakhuja/status/1468292656597897218?s=21

2/ @tombfinance has a token called $TOMB, which is pegged to the value of $FTM.

The peg deviates quite a bit at times, but in the long run, it should trend towards the value of $FTM.

You might be wondering why one would need a token that’s pegged to the value of $FTM.

3/ Why not just use $FTM instead?

The general idea is to create a mirrored, liquid token that can be moved around and used for transfers and payments.

Since a lot of FTMs supply will likely be locked up in staking to secure the network.

See their explanation:

4/ The tomb ecosystem has 3 tokens:
$TOMB, $TBOND and $TSHARE.

$TOMB is pegged to FTM, and the other two exist to help maintain that peg through incentives.

So how does the TOMB peg algorithm work? 👇

5/ Case 1: $TOMB > $FTM:
- The protocol mints $TOMB and distributes it to $TSHARE holders.

Case 2: $TOMB < $FTM:
- You can buy $TBOND by burning TOMB.
- Then in the future, when TOMB > FTM, then you can redeem TOMB using TBONDs

Case 2 is a bit confusing. Here’s an example:

6/ Suppose TOMB = 0.8 FTM currently. You know that eventually it will go back to being >1 FTM.

So you could benefit from this in 2 ways:

Method #1
1. Buy TOMB at 0.8 FTM
2. Wait
3. Sell TOMB at 1.15 FTM

Profit = 1.15 - 0.8 = 0.35 FTM (~43%)

7/ Method #2 (from docs):

1. When TOMB = 0.8, burn 1 TOMB to get 1 TBOND

2. When TOMB = 1.15, redeem 1 TBOND to get 1.105 TOMB

In the example above, you spend 0.8 FTM, but when you redeem your TBOND, you get back 1.15 * 1.105 = 1.27 FTM.

Profit = 0.47 FTM (~58%).

8/ Clearly method 2 has a higher ROI, which incentivizes people to buy $TBOND and this should help stabilize the peg.

tl;dr: when the peg is below (TOMB < FTM) you should buy TBONDs.

Now let’s discuss some strategies in the TOMB ecosystem that you can use to profit.. 💰

9/ Strategy #1: $TOMB - $FTM LP + farm LP tokens (500-1000% APY)

1. Buy TOMB on SpookySwap

2. Provide liquidity to the TOMB-FTM pool

3. Go to Tomb “Cemetery” & stake your TOMB-FTM LP tokens. You will earn TSHARE (~200% APR)

4. Stake these TSHARE in the “Masonry” (~200% APR)

10/ Strategy #2: $TOMB - $FTM LP + autocompounder (500-1000% APY)

This is like #1, except simpler + it will auto-compound.

1. Buy TOMB on SpookySwap

2. Provide liquidity to TOMB-FTM pool

3. Deposit TOMB-FTM LP tokens to an auto compounder like @beefyfinance.

11/ Strategy #3: Delta neutral farming (400%+ APY)

Same as strategy 2, but you also short FTM for an equivalent amount.

This is a great strategy if you don't want exposure to $FTM price.

I wrote about this one here:

https://twitter.com/shivsakhuja/status/1472295936365785089?s=20

12/ Strategy #4: Arbitrage the $FTM - $TOMB peg

(opportunistic, variable returns)

1. When TOMB < FTM, Buy TBOND

2. When TOMB > FTM, Redeem TBOND, purchase and stake TSHARE.

I explained the mechanics of this above.

13/ Strategy #5: TSHARE-FTM LP + Farm (1,900% APY)

Higher APY, but $TSHARE is riskier than $TOMB.

1. Buy TSHARE on SpookySwap

2. Provide liquidity to the $TSHARE - $FTM LP

3. Deposit the TSHARE-FTM LP tokens to @beefyfinance (auto-compound)

You can also do step 3 manually.

14/

I found the $TOMB mechanics pretty complicated initially, but it's a good farming opportunity if you're bullish on $FTM.

I felt there wasn't a clear, simple explanation for it so I tried my best to do that here.

If this helped, please like / RT - help a farmer out 🌽

15/ I write daily threads about #DeFi and #Crypto protocols, strategies and concepts.

Follow along in my DeFi journey, and let me know what you're interested in learning more about!

#WAGMI