Fantom Blockchain Review
As you can see in my previous articles that was mentioned about Blockchain, I personally think that blockchain is not a revolutionary technology that can change the world completely. However it is still the first step of blockchain, you can not hope for the best at first try like hope for a baby to walk before crawl. Using blockchain in DeFi currently suffers many shortcomings but I see a little but steady progress everyday and amount of cash flow that floods into DeFi not only the mainstream one like Ethereum, but alternative ones.
For examples, Solana that got TVL at $152 Million in March 2021 but today grows swiftly to $1.2 Billion today.
Also Polygon that got TVL $360,000 at the beginning of the year to $4.6 Billion today.
Moreover, Avalanche that got TVL $3.6 Million in February to $6.8 Million totay.
Surprisingly, the cash flow that floods into DeFi does not switch from Ethereum but a new cash flow from tradiotional finance. Seeing TVL of all blockchain rises promptly from $22 Billion to $219 Billion presently.
In this article, I would like to review one of the alternative blockchains that everyone keeps an eye on. It is Fantom. So this content includes only rough details about it but I guarantee that you will understand why it is so interesting and I will be your guide to intruduce some appealling platforms in Fantom.
What is Fantom
Fantom is a blockchain created by Korean, Ahn Byung Ik, in 2018 and deployed on mainnet in December 2019. From the data in Fantom Foundation, the distinctive points of Fantom are Lachesis Proof of Stake that can support fast, secured, and low-fee transactions by not decrease a decentralization.
According to the graph above, Fantom is leading to be a rank 6 in TVL of blockchain at $5.23 Billion higher than Polygon. Furthermore, renowned Dapps from other chains are both opening and preparing to settle in Fantom such as AnySwap, Geist Finance, SpookySwap, Beefy Finance, Curve, SushiSwap, Autofarm and Yearn Finance.
What is Lachesis
According to data from Certik, a well-known DeFi and blockchain audit firm, it describes a labyrinthine blockchain problem which is developers can only select 2 out of 3 strengths for blockchain called “Blockchain Trilemma” including Security, Scalability, and Decentralization. For exmaples:
- Ethereum chooses Security and Decentralization so that it can not support a numerous transaction with a low fee. Developers has to resolve by Layer 2 solution.
- Solana and Binance Smart Chain choose Security and Scalability so that they will be mostly centralized.
- Fantom, differently, use Lachesis proof of work which uses Asynchronous Byzantine fault-tolerance (aBFT) consensus mechanism. Hence, it will win almost all strengths with a decentralized and scalable blockchain but security decreases from 51% attack resistance to 34% attack resistance but still nearly impossible to hack.
Partnership
Fantom gets attentions from famous celebrities in blockchain. Andre Cronje, founder of Yearn Finance with $4.57 Biliion TVL, is currently in the DeFi architect and helps promoting Fantom. In addition, Quantum FinTech Group and Formula one racer in Alpha Tauri partner with Fantom. Besides PETRONAS Sepang Racing team also partner with Fantom in Italian Grand Prix in Mugello this year too.
Marketing
One of the supportive reason that brings Fantom soar rapidly that nobody can deny excluding great design blockchain and well-known partners is that Ethereum Virtual Machine (EVM) support therefore various blockchain developers from other chains like Ethereum, BSC or Polygon can copy and paste codes to run in Fantom without big change of codes. Moreover, Fantom announces 370 Million FTM incentive program to reward Dapps to get TVL more than its criterias:
$5,000,000 to $50,000,000 TVL = 1,000,000 FTM
$50,000,000 to $100,000,000 TVL = 1,800,000 FTM
$100,000,000 to $200,000,000 TVL = 5,000,000 FTM
$200,000,000 TVL and above = 12,000,000 FTM
Differently from other chains that persuade users, so Fantom will get many experienced Dapps instead and this will be a longer-term growth for Fantom.
Fantom platforms review
- Geist Finance: TVL $2.77 Billion. This a lending protocol for borrowers and lenders so that lenders can stake their money to earn $GEIST and interest.
2. SpookySwap: TVL $429.17 Million. This is a Decentralized Exchange (DEX) using Automated Market Maker (AMM) for users to swap their desired tokens, also users can become a liquidity providers by adding liquidity for helping the platform to earn $BOO and trading fee. $BOO holders can sell it or stake it for earning additional tokens for other participated platforms. Besides, Bridge and NFT are on its roadmap.
3. Beefy Finance: TVL $280.7 Million. This is a yield optimizer protocol that brings governance token from being a liquidity provider to reinvest in the same pool. Users from SpookSwap or participated protocols can brings their own LP to stake there, Beefy will do it all for them with a 4.5% performance fee from profit.
4. Scream: TVL $267 Million. This is also a lending protocol for borrowers and lenders same with Geist Finance. Its governance token is $SCREAM.
5. SpiritSwap: TVL $258 Million. This is also a DEX like SpookySwap and lending protocol like Geist Finance. $SPIRIT is a Governance token that is received by becoming liquidity providers. $SPIRIT can be locked in protocol to earn additional reward as a $InSPIRIT to boost pair in SpiritSwap.
6. Beethoven X: TVL $233 Million. This is an Index fund protocol that users can choose their own satisfied funds. It has a numerous strategies of investment such as The Grand Orchestra that invest in $FTM, $ETH and $BTC equally at 33.33% when the price change in proportion, Beethoven will rebalance this port itself. There are 2 to 9 tokens that can include in one fund. Moreover, Users also receive $BEETS for using protocol.
Summary
Fantom is a brand-new and high-growth blockchain with a interesting APR for stablecoin at 55% so that it is still has a lot of great opportunities and many Dapps are also preparing to settle down here. With a marvelous technology of Lachesis proof of work, it is a breakthrough in DeFi but lack of stress test or long time real experience usage. It sill need time to prove its own strength. And Finally, Investment in DeFi has plentiful risks for users in surveillance, so you should look through in Docs of each platforms to understand usage and tokenomics and follow their Telegram, Twitter, and Medium to get latest news.
I hope readers could get something worth in this article. Enjoy in DeFi : )
