This article covers how I’m using the Harmony One Blockchain and Tranquil Finance Defi protocol to gain maximum exposure to $one through liquid staking and $stONE.
Disclaimer: The content of this post is intended as an example strategy and meant as entertainment not investment advice.
Harmony One Protocol overview
There’s a large developer grant and a lot of farming incentives on Harmony Blockchain. This should attract more dapps and more TVL.
Harmony Protocol vs other blockchains
Harmony’s ~1B+ TVL is still relatively small, so Harmony One has room to grow.
TVL of other chains:
ETH ~ $160B, Luna: $19B, Avax: $12B, Polygon: $6B.
How to use Harmony One
If starting on Ethereum mainnet, you can bridge over $ETH using https://bridge.harmony.one/.
Using the bridge, your Harmony address will be airdropped a small amount of $ONE – good for a few transactions.
You can also buy $One and bypass Etehreum fees.
To get started, use my referral link on Crypto.com https://crypto.com/app/r6rqfnbkn7 and we’ll both get $25 USD 🙂
How to add Harmony to MetaMask: https://docs.harmony.one/home/network/wallets/browser-extensions-wallets/metamask-wallet
The swap process
For your first transaction, use SushiSwap on Harmony network to swap ETH to ONE and be sure to not stake/swap all your Harmony ONE crypto. (Keep at least ‘1’ one for transaction fees.)
Our Goal For Harmony One Position
Monitoring Defi can be a full time job, so I want to keep it simple and achieve:
– Gain exposure to native token, $ONE price increase
– Do more than “just Hodl” and get a decent APY on $ONE
– Take a position that isn’t hard to monitor or at high risk of IL.
Introducing Tranquil Finance & Liquid $one Staking
Similar to how Lido Finance created stETH, stSOL, and bLuna, Tranquil finance created stONE, which is liquid staked ONE.
At the time of writing, you earn 9.57% APY on $stONE. Since $stONE is liquid you can lend it out on Tranquil.finance and earn an additional 3.55% APY (some of which is paid in Tranq tokens, some in stONE). But it doesn’t end there.
Because of these early incentives, Tranquil is actually paying users in $TRANQ to borrow money –so, now is the time to get even more degen with the defi yield farming.
You can use the stONE you’re lending as collateral to borrow other assets. You can even borrow more stONE, which right now is being lent out at a POSITIVE APY of 8%+
Impermanent Loss and Liquidation Risk $one / $stONE
Theoretically, since you’re lending/borrowing the (kinda) same asset your liquidation risk is *ALMOST non-existent. You could continue to loop this but then you’re exposing yourself to a lot of TRANQ/stONE IL
Reason: when “borrowing for profit” you are earning your gains in the $TRANQ and losing in the underlying token.
Ex: Borrowing stONE (losing ~3% APY on stONE, getting paid 11% APY in TRANQ)
Personally, I’m keeping it simple – staking my ONE to get stONE, lending stONE, and borrowing ~50% stONE to give myself some exposure to TRANQ token.
Once incentives are down for borrowing, I’ll close my borrowing position and perhaps just lend. Or switch into LPing the stONE/ONE pair on SushiSwap which is currently at 15%+. (LPing is also a decent strategy right now).
Ok, that’s all for now. Thanks for reading!
Follow Mark on Twitter
For more DeFi strategy and tips, follow Mark on Twitter: https://twitter.com/NewMarkNFT
Read about Mark’s NFT launch: https://peerthroughmedia.com/how-to-make-nft-collection/
More DeFi articles from Peer Through: https://peerthroughmedia.com/category/crypto/defi/