1/17
@beefyfinance Escrowed Fantom #beFTM
What is it?
Who should invest in it?
Who should not?
When to buy, when to mint?
A thread 🧵
(No financial advice is being offered of course)
@beefyfinance Escrowed Fantom #beFTM
What is it?
Who should invest in it?
Who should not?
When to buy, when to mint?
A thread 🧵
(No financial advice is being offered of course)
2/17
What is it?
It represents $FTM which has been delegated and max locked to Beefy's Fantom Network Validator Node.
You cannot redeem it for FTM, but you can trade it.
Beefy's node is ID 92. At time of writing it is the 21st largest node.
What is it?
It represents $FTM which has been delegated and max locked to Beefy's Fantom Network Validator Node.
You cannot redeem it for FTM, but you can trade it.
Beefy's node is ID 92. At time of writing it is the 21st largest node.
3/17
When #beFTM is minted 1:1 with FTM, that FTM is delegated on a 1 yr rolling perpetual lock to receive maximum staking rewards.
Over 6 M FTM has already been delegated in this way (as can be determined by the beFTM Total Supply)
When #beFTM is minted 1:1 with FTM, that FTM is delegated on a 1 yr rolling perpetual lock to receive maximum staking rewards.
Over 6 M FTM has already been delegated in this way (as can be determined by the beFTM Total Supply)
4/17
As with all FTM Validator delegation, 15% goes to the node owner, which is the @beefyfinance Treasury.
Building their warchest to continue development and releasing new products, but that's a thread for another day.
As with all FTM Validator delegation, 15% goes to the node owner, which is the @beefyfinance Treasury.
Building their warchest to continue development and releasing new products, but that's a thread for another day.
5/17
The remaining 85% of max validator rewards goes to #beFTM stakers. Stakers have 2 options, earn claimable $FTM rewards or have those rewards used to market buy and compound more beFTM. Creating constant buy pressure to support the FTM peg.
The remaining 85% of max validator rewards goes to #beFTM stakers. Stakers have 2 options, earn claimable $FTM rewards or have those rewards used to market buy and compound more beFTM. Creating constant buy pressure to support the FTM peg.
6/17
The peg. The thing which will probably get the most discussion but be of low importance for the appropriate investors (more on this later).
Each #beFTM is fully backed by 1 $FTM.
In a disaster scenario, Beefy can retire the product, forfeit rewards to receive FTM back.
The peg. The thing which will probably get the most discussion but be of low importance for the appropriate investors (more on this later).
Each #beFTM is fully backed by 1 $FTM.
In a disaster scenario, Beefy can retire the product, forfeit rewards to receive FTM back.
7/17
This will almost definitely not be used due to the incentives for buying and staking #beFTM
Each beFTM gets at minimum 1 $FTM worth of staking rewards regardless of the price.
So beFTM peg and staking APY are inversely correlated as rewards are always in the form of $FTM
This will almost definitely not be used due to the incentives for buying and staking #beFTM
Each beFTM gets at minimum 1 $FTM worth of staking rewards regardless of the price.
So beFTM peg and staking APY are inversely correlated as rewards are always in the form of $FTM
8/17
All #beFTM delegated validator rewards are used to reward beFTM stakers. All beFTM is not staked though as there are also incentives to provide liquidity.
Of the $10 M beFTM total supply, only $4 M is staked.
The rest is collecting $SOLID rewards
All #beFTM delegated validator rewards are used to reward beFTM stakers. All beFTM is not staked though as there are also incentives to provide liquidity.
Of the $10 M beFTM total supply, only $4 M is staked.
The rest is collecting $SOLID rewards
9/17
So instead of the base ~14.4% APR for 1 year locked $FTM delegation, #beFTM stakers can get more than double that at 32% APY (not counting the active #launchpool boost, another tool in Beefy's bag to incentivize beFTM)
So instead of the base ~14.4% APR for 1 year locked $FTM delegation, #beFTM stakers can get more than double that at 32% APY (not counting the active #launchpool boost, another tool in Beefy's bag to incentivize beFTM)
10/17
If you desire even moo-ore nitty-gritty details you can see @beefyfinance's own 🧵
If you desire even moo-ore nitty-gritty details you can see @beefyfinance's own 🧵
https://twitter.com/beefyfinance/status/1499931614742253569
11/17
Who should invest in #beFTM?
This is very easy IMO. Do you want long-term passive $FTM rewards from REAL yield? This is the product for you.
Either compound more beFTM or switch to the earnings pool to get passive $FTM rewards to use as you please.
Who should invest in #beFTM?
This is very easy IMO. Do you want long-term passive $FTM rewards from REAL yield? This is the product for you.
Either compound more beFTM or switch to the earnings pool to get passive $FTM rewards to use as you please.
12/17
Who should not invest in #beFTM?
Short term investors should avoid beFTM. It is soft pegged to $FTM, but there is no guarantee you will be able to sell for 1 FTM.
Long term, temporary depegging only represents a discount buying opportunity.
Who should not invest in #beFTM?
Short term investors should avoid beFTM. It is soft pegged to $FTM, but there is no guarantee you will be able to sell for 1 FTM.
Long term, temporary depegging only represents a discount buying opportunity.
13/17
But for users chasing a short term farming opportunity, you may end up with less value if the rewards eventually decrease and mercenary farmers all drop out at the same time.
But for users chasing a short term farming opportunity, you may end up with less value if the rewards eventually decrease and mercenary farmers all drop out at the same time.
14/17
#beFTM at full peg and beFTM at half peg generate the same amount of $FTM rewards.
So below peg beFTM just generates a higher APR which incentivizes buying/restoring the peg.
Investors will learn in time what to expect and the peg will be maintained.
#beFTM at full peg and beFTM at half peg generate the same amount of $FTM rewards.
So below peg beFTM just generates a higher APR which incentivizes buying/restoring the peg.
Investors will learn in time what to expect and the peg will be maintained.
15/17
Lastly, buy or mint?
This is simple. If #beFTM is below the $FTM peg, buy at a discount.
If beFTM is at or above the peg, mint beFTM with ftm, and even sell and repeat if still over peg.
Lastly, buy or mint?
This is simple. If #beFTM is below the $FTM peg, buy at a discount.
If beFTM is at or above the peg, mint beFTM with ftm, and even sell and repeat if still over peg.
16/17
In conclusion,
#beFTM is a very exciting product where users can get pure $FTM gains from real yield at minimum 14.4% APY and likely double that most of the time.
In conclusion,
#beFTM is a very exciting product where users can get pure $FTM gains from real yield at minimum 14.4% APY and likely double that most of the time.
17/17
Beefy increases the security of @FantomFDN's blockchain.
Investors get a great $FTM yield opportunity.
@beefyfinance becomes more sustainable from the node rewards.
$BIFI stakers benefit from all of the above.
Beefy increases the security of @FantomFDN's blockchain.
Investors get a great $FTM yield opportunity.
@beefyfinance becomes more sustainable from the node rewards.
$BIFI stakers benefit from all of the above.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
