Category: Defi Projects

In our previous episode, we covered the basics of smart contracts and their role in lending and borrowing in DeFi. In this episode, we delve into the mechanics of how lending and borrowing actually works, the role of interest rates, stablecoin usage, and yield farming strategies in the DeFi space.How DeFi lending and borrowing works in a nutshell⬇️ (incase you missed the first episode)This occurs in two simple processes;Lending: Users deposit their assets (e.g., ETH, DAI, USDT) into a lending protocol. The protocol pools these assets and makes them available for borrowers. Lenders earn interest based on the supply and demand dynamics of the protocol.Borrowing: Users lock up collateral in the protocol. The protocol determines the maximum borrow amount based on the collateral’s value. Borrowers pay interest on the borrowed amount and must maintain collateral above a certain threshold to avoid liquidation.Interest Rates and Yield Farming in DeFiInterest rates in play a crucial role in the DeFi, which affects both lenders and borrowers. They are determined by the interplay of supply and demand within the protocol and can vary significantly between different assets and platforms.Types of Interest Rates:Variable Interest Rates: Also known as floating rates, these rates which are set algorithmically fluctuate based on market conditions, in other words it is based on the demand and supply for a particular asset.Stable Interest Rates: Also known as fixed rates, these are rates that are fixed for a certain period, which are very predictable for borrowers or suppliers. This type of interest rate is beneficial for borrowers who prefer certainty in their repayment plans, as they are not subject to market volatility.Some factors that influence interest rates includes supply and demand, protocol specific factors, market conditions and protocol incentives.Yield Farming: Maximizing Returns in DeFiYield farming, also known as liquidity mining, is a strategy where users provide liquidity to DeFi protocols in exchange for rewards. It has become a popular method for earning returns in the DeFi space.How Yield Farming Works:Providing Liquidity: Users deposit assets into liquidity pools on DEXs or lending protocols. These pools facilitate trading and lending activities within the platform.Earning Rewards: In return for providing liquidity, users earn a share of the transaction fees generated by the platform. Additionally, many protocols offer extra rewards in the form of native tokens (e.g., COMP for Compound, AAVE for Aave).Compounding Returns: Yield farmers often reinvest their earnings into the same or other protocols to compound their returns. This can involve complex strategies, such as moving funds across multiple platforms to maximize yield.Popular Yield Farming Strategies:Liquidity Provision on DEXs: Users provide pairs of tokens to DEX liquidity pools (e.g., ETH/DAI on Uniswap) and earn a portion of the trading fees.Lending and Borrowing: Users lend their assets on lending platforms like Plend, Aave or Compound to earn interest. Some also borrow assets and use them to participate in additional yield farming opportunities, leveraging their positions.Staking: Users stake their tokens in various protocols to earn staking rewards. This is common in platforms that require staking for governance participation or security (e.g., staking AAVE in Aave’s Safety Module).Key Factors and Terms in Lending & Borrowing in DeFiAPY (Annual Percentage Yield)Definition: The real rate of return earned on an investment, taking into account the effect of compounding interest.Importance: APY is a crucial metric for lenders as it shows the potential earnings from depositing assets into a lending protocol.2. APR (Annual Percentage Rate)Definition: The yearly interest rate charged on borrowed funds without considering compounding.Importance: Borrowers use APR to understand the cost of borrowing from a protocol.3. CollateralDefinition: Assets that a borrower must lock into a DeFi protocol to secure a loan.Importance: Collateral protects lenders and the protocol from default risk by ensuring there is a safety net if the borrower cannot repay the loan.4. Over-CollateralizationDefinition: Requiring borrowers to provide collateral worth more than the loan amount.Importance: This practice mitigates risk by ensuring that the collateral value exceeds the borrowed amount, protecting against market volatility.5. Health FactorDefinition: A numerical representation of the safety of a loan, where a value above 1 indicates a healthy position, and a value below 1 triggers liquidation.Importance: It helps borrowers and lenders monitor the risk of a loan position.6. LTV (Loan-to-Value) RatioDefinition: The ratio of the loan amount to the value of the collateral.Importance: LTV helps determine how much a user can borrow against their collateral. Lower LTV ratios imply safer loans.7. LiquidationDefinition: The process by which a protocol automatically sells a borrower’s collateral when its value falls below the required threshold.Importance: Liquidation ensures the protocol remains solvent and lenders are repaid even if a borrower’s collateral drops in value.8. Utilization RateDefinition: The ratio of borrowed assets to total available assets in a lending pool.Formula: Utilization Rate = (Total Borrowed Assets / Total Supplied Assets) * 100Importance: High utilization rates often lead to higher interest rates to attract more liquidity and balance the pool.9. Interest Rate ModelsDefinition: Algorithms used by DeFi protocols to adjust interest rates based on supply and demand.Importance: These models ensure that rates are dynamically set to balance the availability and borrowing cost of assets.10. StablecoinsDefinition: Cryptocurrencies pegged to the value of a fiat currency (e.g., USDT, USDC, DAI).Importance: Stablecoins provide a stable medium of exchange and store of value, reducing exposure to the volatility of other cryptocurrencies in lending and borrowing activities.11. Size/ReserveSize: Refers to the total amount of assets available in a lending pool or protocol.Reserve: The portion of the pool set aside by the protocol, often as a buffer to ensure liquidity.12. Reserve FactorDefinition: A percentage of the interest paid by borrowers that is set aside by the protocol to act as a reserve.Purpose: Ensures the protocol’s solvency and provides a safety buffer.13. Liquidation PenaltyDefinition: A fee charged to the borrower when their collateral is liquidated due to falling below the required threshold.Purpose: Compensates the protocol and liquidators for the risk and costs associated with the liquidation process.Liquidation MechanismsLiquidations ensure that loans remain adequately collateralized to protect lenders and maintain the protocol’s solvency.Here’s how liquidation typically works 👇🏾Collateralization: When users borrow assets, they must provide collateral that typically exceeds the loan value, a process known as over-collateralization. This collateral acts as security for the loan.Monitoring Collateral Value: The protocol continuously monitors the value of the collateral against the borrowed amount. This is essential because the value of crypto assets can be highly volatile.Triggering Liquidation: If the value of the collateral falls below a certain threshold (often defined by a Loan-to-Value (LTV) ratio), the loan becomes under-collateralized. The protocol then initiates liquidation to protect the lenders. For example, if a user borrows $100 worth of an asset and has provided $150 worth of collateral, and the collateral value drops to $120, the protocol might trigger liquidation to cover the loan and protect the lender.Liquidation Process: During liquidation, the protocol sells the borrower’s collateral on the open market or to designated liquidators at a discount to quickly repay the loan. The borrower typically incurs a penalty fee, and the remaining collateral (if any) is returned to the borrower.Liquidation as harsh as it sounds is very important in lending protocols, as it protects lenders, maintains a protocols solvency and helps to stabilize the overall market by mitigating the risk of defaults.Utilizing Stablecoins in Lending and BorrowingStablecoins are mostly utilized in lending and borrowing because it provides a stable medium of exchange that mitigates the volatility associated with traditional cryptocurrencies like $ETH or $WBTC. They are pegged to fiat currencies like the US dollar, offering price stability and predictability.Some advantages of stablecoins include:Price Stability: Stablecoins like DAI, USDT, and USDC are pegged to fiat currencies, reducing volatility risk.Liquidity: Highly liquid and widely accepted across DeFi protocols.Predictable Returns: For lenders, depositing stablecoins into lending protocols ensures that the interest earned is stable and predictable, unlike volatile crypto assets.Reduced Risk for Borrowers: Borrowing stablecoins allows users to avoid the risk of their borrowed assets increasing in value, which can happen with volatile cryptocurrencies. This stability makes it easier to manage loan repayments.Some use cases for stablecoins include:Borrowing: Borrow stablecoins against volatile crypto assets to reduce exposure to market swings.Lending: Lend stablecoins to earn predictable interest returns.ConclusionDeFi lending and borrowing involve straightforward processes but rely on complex mechanisms like interest rates and liquidation thresholds to ensure stability. Interest rates affect both lenders and borrowers, while yield farming strategies can enhance returns but come with risks. Stablecoins play a key role by providing stability and reducing volatility. Understanding these elements helps users navigate and optimize their engagement in the DeFi space effectively.💜Follow us on XJoin our discord community

Lending and Borrowing in DeFi 2: Understanding DeFi Smart Contracts and Their Role in Lending and BorrowingIn the first episode, we explored the basics of lending and borrowing in DeFi, highlighting the benefits, key platforms, and the overall process. In this episode, we’ll dive deeper into the backbone of DeFi: smart contracts. We’ll discuss what smart contracts are, how they function, and their pivotal role in enabling secure and transparent lending and borrowing in the DeFi ecosystem.What are Smart Contracts?Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They run on supported blockchain networks, with the most contracts being written and executed on Ethereum. Now, understand that in a smart contract, the terms are executed only when predefined conditions are met.Learn more about smart contracts hereKey Features of Smart ContractsAutomated Execution: Smart contracts eliminate the need for intermediaries by automating the execution of agreements when conditions are met.Transparency: All smart contract transactions are recorded on the blockchain, ensuring complete transparency and traceability.Immutability: Once deployed, smart contracts cannot be altered, which guarantees the integrity and security of the terms.Trustlessness: Parties involved do not need to trust each other; they only need to trust the code.How Smart Contracts Enable Lending and Borrowing in DeFiSmart contracts are fundamental to DeFi lending and borrowing platforms like Plend, Aave, and Compound. Here’s how they work:Collateral Management:Users deposit their crypto assets (e.g., $DAI) into a smart contract as collateral.The smart contract locks the collateral and verifies its value.2. Loan Issuance:Once the collateral is secured, the smart contract facilitates the borrowing of assets (e.g., $ETH).The terms of the loan, including interest rates and repayment schedules, liquidation threshold, loan-to-value ratio(LTV),etc are encoded in the smart contract.3. Interest and Repayments:Borrowers repay the loan along with interest directly to the smart contract.The smart contract ensures that lenders receive their interest payments on time.4. Liquidation:If the value of the collateral falls below a certain threshold, the smart contract automatically triggers liquidation.The collateral is sold to repay the loan, protecting lenders from default risk.Example Scenario:User A wants to borrow ETH from PlendUser A deposits DAI as collateral into a smart contract on Plend.The smart contract locks the DAI and allows User A to borrow ETH.User A repays the ETH loan with interest over time.If the DAI collateral’s value drops too low, the smart contract liquidates it to repay the ETH loan.For a more technical rundown of key details in a basic smart contract designed for a lending protocol, see below ⬇️PS: If you are not technical, you can choose to skip this part 🙂(a) Imports and LibrariesThis helps to manage dependencies and use the smart contract’s code more efficiently.import “@openzeppelin/contracts/utils/math/SafeMath.sol”;import “@openzeppelin/contracts/token/ERC20/IERC20.sol”;SafeMath: Prevents overflow and underflow errors in arithmetic operations.IERC20: Interface for interacting with ERC20 tokens (e.g., DAI).(b) Contract VariablesIERC20 public stablecoin;uint256 public collateralizationRatio = 150;uint256 public interestRate = 10;stablecoin: The ERC20 stablecoin used for borrowing (e.g., DAI).collateralizationRatio: The required collateral ratio (e.g., 150%).interestRate: Annual interest rate for borrowing.(c) Loan Structstruct Loan { uint256 collateral; uint256 debt; uint256 timestamp;}collateral: Amount of ETH deposited as collateral.debt: Amount of stablecoin borrowed.timestamp: Time when the loan was created.(d) Mappings and Eventsmapping(address => Loan) public loans;event Deposited(address indexed user, uint256 amount);event Borrowed(address indexed user, uint256 amount);event Repaid(address indexed user, uint256 amount);event Withdrawn(address indexed user, uint256 amount);loans: Maps user addresses to their loan details.Events: Log deposit, borrow, repay, and withdraw actions.(e) ConstructorInitializes the contract with the stablecoin address.constructor(address _stablecoin) { stablecoin = IERC20(_stablecoin);}(f) Deposit Collateral FunctionAllows users to deposit ETH as collateral.function depositCollateral() external payable { require(msg.value > 0, “Collateral amount must be greater than 0”); Loan storage loan = loans[msg.sender]; loan.collateral = loan.collateral.add(msg.value); emit Deposited(msg.sender, msg.value);}Allows users to deposit ETH as collateral.(g) Borrow FunctionAllows users to borrow stablecoins against their collateral.function borrow(uint256 amount) external { Loan storage loan = loans[msg.sender]; uint256 maxBorrow = loan.collateral.mul(100).div(collateralizationRatio); require(amount <= maxBorrow, “Borrow amount exceeds collateralization ratio”); loan.debt = loan.debt.add(amount); loan.timestamp = block.timestamp; require(stablecoin.transfer(msg.sender, amount), “Stablecoin transfer failed”); emit Borrowed(msg.sender, amount);}(h) Repay FunctionAllows users to repay their borrowed stablecoins.function repay(uint256 amount) external { Loan storage loan = loans[msg.sender]; require(amount <= loan.debt, “Repay amount exceeds debt”); loan.debt = loan.debt.sub(amount); require(stablecoin.transferFrom(msg.sender, address(this), amount), “Stablecoin transfer failed”); emit Repaid(msg.sender, amount); }(i) Withdraw Collateral FunctionAllows users to withdraw their collateral after repaying their debt.function withdrawCollateral(uint256 amount) external { Loan storage loan = loans[msg.sender]; require(loan.debt == 0, “Debt must be repaid before withdrawing collateral”); require(amount <= loan.collateral, “Withdraw amount exceeds collateral”); loan.collateral = loan.collateral.sub(amount); payable(msg.sender).transfer(amount); emit Withdrawn(msg.sender, amount); }(j) Interest Calculation FunctionCalculates the interest on the debt over a given duration.function calculateInterest(uint256 debt, uint256 duration) public view returns (uint256) { return debt.mul(interestRate).mul(duration).div(365 days).div(100); }(k) Get Loan Details FunctionReturns the loan details for a given user.function getLoanDetails(address user) external view returns (uint256, uint256, uint256) { Loan storage loan = loans[user]; return (loan.collateral, loan.debt, loan.timestamp); }UsageDeploy the Contract: Deploy the contract on a blockchain network (e.g., Ethereum) with the address of the stablecoin (e.g., DAI).Deposit Collateral: Users can deposit ETH as collateral.Borrow: Users can borrow stablecoins against their deposited collateral.Repay: Users can repay their borrowed stablecoins.Withdraw Collateral: Users can withdraw their collateral after repaying their debt.This is just a basic implementation or usage of the smart contract code above, you can easily use this or even try to test it out. But in a real case scenario, you’d want to do more research, add more features, vet the code and add security checks to make it more robust and secure.Advantages of Smart Contracts in DeFiEfficiency: Automated processes reduce the time and cost associated with traditional financial intermediaries.Security: Code-enforced rules and immutability provide a high level of security.Global Access: Anyone with an internet connection can participate in DeFi, promoting financial inclusion.Innovation: Smart contracts enable the creation of complex financial products and services without the need for centralized institutions.Challenges and RisksSmart Contract Bugs: Errors in a code can lead to vulnerabilities and potential losses, especially when deployed on a main network.Market Volatility: Fluctuations in crypto asset values can affect collateral and loan stability. This makes it very important to monitor your assets and mitigate risk of liquidation.Regulatory Uncertainty: The evolving regulatory landscape may impact DeFi operations as regulations are unknown and not clear to users yet.Future Trends in Smart ContractsCross-Chain Interoperability: Plend is at the top of this innovation as we are enhancing smart contract functionality so users can move liquidity across different blockchains seamlessly.Improved Security Audits: More rigorous auditing practices to minimize bugs and vulnerabilities.Enhanced User Interfaces: Simplifying interaction with smart contracts for non-technical users.ConclusionSmart contracts are the cornerstone of DeFi, enabling secure, transparent, and efficient lending and borrowing. By automating processes and eliminating intermediaries, they unlock new possibilities for financial innovation and inclusion.At Plend, we are focused on eliminating the issues that users face while interacting with native DeFi protocols such as smart contract and economic risks, coupled with liquidity fragmentation.Try out the Plend testnet here.Make sure to follow on X to get the latest development updatesJoin the community on discord 💜🫂

IntroductionDecentralized Finance otherwise known as DeFi is revolutionizing the financial sector by creating a global, open and permissionless financial system. This is achieved through the use of blockchain technology which creates a platform for building decentralized apps that allows anyone from any part of the world to transact in a peer-to-peer manner. At the heart of this revolution are lending and borrowing protocols, which enables users to lend and borrow assets without any intermediary or middleman.This article explores how Lending and Borrowing works in DeFi, its benefits, key platforms, challenges and future trends.How Lending and Borrowing worksLending and Borrowing in DeFi leverages blockchain technology and smart contracts to create a financial system that allows anyone to interact and execute transactions with a decentralized app or protocol that offers L&B services.LendingThis usually involves a user depositing their crypto assets or tokens into a smart contract on a lending platform. These assets that are deposited by the user are now available for anyone to borrow, in return, the lender can earn an interest which is paid by the borrower.This is an entirely transparent process with all the transactions on-chain.BorrowingTo borrow an asset, a user MUST provide a collateral which is often in the form of other crypto assets.Here’s a typical example:User A wants to borrow $ETH from a protocolUser A has $DAI in his wallet and the protocol accepts the token as collateralUser A puts down $DAI as a collateral on the protocol and proceeds to borrow $ETHNote that the collateral that is put down by the borrower has to exceed the value of the loan(asset borrowed). This is a strict mechanism that essentially protects the lender in case of a market downturn. The borrower pays an interest on the loan and if the value of their collateral drops below a certain threshold, it triggers a liquidation which is used to repay back the loan.All processes of liquidation and repayment are automatic and executed by smart contracts owned by the protocol.Key Platforms and ProtocolsSince the inception of decentralized finance, here have been some platforms which have emerged as the key protocols and leaders in the lending and borrowing space.AaveAave is a decentralized non-custodial liquidity market protocol where users can participate as suppliers or borrowers. The suppliers provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralized (perpetually) or undercollateralized (one-block liquidity) fashion.The Aave protocol is one of the biggest DeFi protocols with over $20b of liquidity locked. It is also completely open-sourced which means that anyone with the technical know-how can build a third-party service or application with the protocol.PS: The Plend Protocol is making use of the Aave contracts as an initial step to build the platform as the Aave contracts have been battle-tested and is one of the most forked for lending protocols.You can read more about Aave here2. Compound FinanceCompound is an EVM compatible protocol that enables supplying of crypto assets as collateral to borrow a “base” asset. It allows users to earn interest on their crypto by supplying assets to liquidity pools. Compound’s interest rates are algorithmically adjusted based on supply and demand.The protocol is also widely used by many projects and open-sourcedRead more about the Compound Protocol here3. MakerDAOMakerDAO is a decentralized protocol that is widely known for its stable coin $DAI, which anyone can generate by collateralizing their crypto assets. To put into simple terms, you can get $DAI by locking up your $ETH as a collateral on the platform.Most DeFi lending and borrowing platforms make use of MakerDAO’s $DAI stable coin for generating yield as its best suited for that.You can read up more about the platform and how it works in depth hereBenefits of Lending and Borrowing in DeFiParticipating in lending and borrowing opens a whole new door to a revolutionary financial system and offers several advantages over traditional financial systems.Some benefits include:AccessibilityMost DeFi platforms are open to anyone with an internet connection and crypto wallet. This creates a gateway for billions of people all over the globe who are excluded by traditional financial services to participate regardless of their geographic location. Individuals can lend their assets to earn interest or borrow funds by providing cryptocurrency as collateral or even depositing their assets in liquidity pools to earn competitive yields.2. TransparencyAll transactions in DeFi are transparent and can be publicly viewed on the blockchain where it is permanently recorded, reducing the risk of fraud. This transparency also involves users gaining access to real-time data and analytics on lending rates, total value locked (TVL), collateral ratios and more which helps the user make informed decisions based on the current market conditions.3. Enhanced SecurityThis also stems from transparency, as the open nature of lending and borrowing protocols allows the community to scrutinize and audit the platform continuously. This particular collective oversight by community members and interested individuals helps identify and mitigate vulnerabilities more than a closed centralized financial system that offers interests in L&B.Risks and ChallengesWhile we have opportunities presented to us by Lending and Borrowing protocols in DeFi, there also comes risks which sometimes are overlooked during the protocols audit or even a hack.Some identifiable risks include the following;Smart Contract VulnerabilitiesMarket VolatilityRegulatory UncertaintiesFuture TrendsAs the decentralized finance space continues to evolve, so do new technologies, tools and trends with innovative applications.Let’s evaluate some trends which has been spurring in recent time 👇⛓️Cross-Chain Lending SolutionsAs DeFi expands across multiple markets and blockchains, cross-chain solutions are becoming increasingly vital. These solutions enable the seamless lending and borrowing of crypto assets across different blockchain networks, addressing one of the key limitations of the current ecosystem — fragmentation.The DeFi ecosystem is currently fragmented, with multiple blockchains operating independently. This fragmentation presents several challenges:Limited Asset Utilization: Users can only lend or borrow assets within the same blockchain, limiting the potential for asset utilization and liquidity.User Experience: Managing assets across multiple blockchains can be complex and cumbersome for users, requiring multiple wallets and interfaces.Liquidity Fragmentation: Liquidity is spread thin across different blockchains, reducing the overall efficiency and effectiveness of lending and borrowing platforms.Cross-chain lending solutions address these challenges by enabling the interoperability of assets and liquidity across multiple blockchains. These solutions utilize various technologies and mechanisms to facilitate the movement of assets between blockchains which include decentralized bridges, wrapped assets, and interoperability protocols and cross-messaging platforms.The benefits of cross-chain lending solutions includes:Increased Liquidity: By enabling assets to move freely between blockchains, cross-chain solutions aggregate liquidity from multiple sources, enhancing the overall liquidity available for lending and borrowing.Enhanced Asset Utilization: Users can leverage their assets across multiple blockchains, maximizing their earning potential and improving capital efficiency.Improved User Experience: Cross-chain solutions simplify the user experience by providing seamless access to lending and borrowing opportunities across different blockchains through a unified interface.Broader Market Reach: Platforms can tap into the user bases of multiple blockchains, increasing their reach and potential user adoption.Plend Finance is building a top-tier cross-chain lending protocol which not only enables users to lend their assets across multiple blockchains but also aggregate the liquidity and real-time data from available markets and deliver the best rates to the platform users.The platform is currently on testnet and everyone is welcome to interact and test out the Plend protocol and explore its features.👤Improved User Experience and InterfaceIn order to attract more users, DeFi platforms are now focusing on improving the user experience and interface, making it easier for users to navigate and use these platforms. This can be seen in some lending and borrowing protocols which allocate resources to constantly improve the quality of their UI and provide intuitive landing pages for even newbies to grasp the concept of various terms used in L&BFor example, using the Plend UI, the dashboard displays terms like NET APY, Net worth, Health Factor, Users Deposits & Borrows and Risk details. All these makes it easy for some to get knowledgeable and avoid complicated issues and make informed decisions.Another future trend worth mentioning is the increased integration of traditional financial systems. This includes the partnership formed by DeFi platforms and traditional finance institutions to bolster the adoption of these protocols and the use of their platforms. For example, a DeFi platform partnering with a fintech or payment platform to introduce on-ramp/off-ramp of assets or stablecoins.ConclusionLending and borrowing in Decentralized Finance (DeFi) represent a transformative shift in the financial sector, providing a global, open, and permissionless financial system powered by blockchain technology. By enabling peer-to-peer transactions without intermediaries, DeFi lending and borrowing protocols offer numerous benefits such as increased accessibility, enhanced transparency, and improved security.Plend Finance is at the forefront of these innovations, building a top-tier cross-chain lending protocol that aggregates liquidity and real-time data from multiple blockchains to deliver the best rates to users.Explore the future of DeFi lending and borrowing with Plend and join us in shaping the next generation of decentralized financial services.Try out the Plend testnet here.Make sure to follow on X to get the latest development updatesJoin the community on discord 💜🫂

GT — 2024 Part 1We live in the lab.Hello Geniuses! In 2024, we have been cooking with GAS.We’ve arrived at the midpoint of 2024 and it feels like a great time to review all of the happenings across GeniusTeam products and services!⚪ GeniusTeamWe’re happy to see GT grow in multiple ways throughout 2024. In a big milestone for our group, we’ve picked up our first external development contract, helping an upcoming blockchain project prepare for release.We’ve also grown the GT squad for the first time! Our new graphics team (GT-GFX) will be working across projects in the GT portfolio, helping modernize and future-proof our visual interfaces. In addition to the GT-GFX team, we’ve onboarded an experienced designer/creator to help us with merch and brand development across GT!Along with growth, it’s also time for a change at GT.We will be sunsetting the Genius Contracts name/brand and putting our full force behind the GeniusTeam brand. GC branded accounts and channels for GC will simply convert to using SalsaDAO branding. This simplifies the structure for our Tezos offerings.What’s next: GC sunsetting. New design content & look-books.💎 SalsaDAO2024 has been a fun ride for SalsaDAO followers and VIPs. New rewards, new farms, new events, and new partners! The Tacos 2.0 event was a fun way to spark some activity on ArtDEX and teach newer participants about some SalsaDAO lore. Stay tuned for the upcoming Liquid Legends drop!We’re currently in the middle of upgrading & uplifting SalsaDAO features. We will be creating a new SalsaDAO HQ website which will be a special home base SalsaDAO users, with a new portfolio to track all of your positions across SpicySwap, Matter, ArtDEX, and more! This new site will also hold DAO functionalities.With the new SalsaDAO HQ, the existing salsadao.xyz site will be deprecated.Going further, we will be updating the SalsaDAO brand and logo with the help of our new designer. Big things are coming in 2024!What’s next: SalsaDAO HQ. Finish rebrand.🟠 SpicySwapFor SpicySwap, our 2024 focus has been on ensuring smooth UI and UX for users. This year on Spicy, we’ve shipped bunch of interface updates and a new token generator which has proven to be the easiest and cheapest to use on Tezos.Recently, we moved some priorities around to create SpicySwap Sprouts, a new token launchpad that is inspired by the mechanics introduced on pump.fun!Our goal is to make Sprouts the best launchpad, ever. What you see right now is just the start; we have some clever features coming in SproutsV2 that will really spice things up!Read more, and try Sprouts today.What’s next: More UX & QoL upgrades. SproutsV2.🟣 Tezos CartelTezos Cartel is GT’s new gem.Since taking over development of the TC project, we’ve worked to introduce a fully re-imagined UI/UX for the casino. Users have provided glowing feedback and we are excited to keep on growing the casino and its bankrolls.In terms of tech, this year we’ve shipped a new embedded wallet system and a top-tier mobile mode. Our goal is to make gaming on Tezos Cartel easy and fun, wherever you are!We have more big things coming for you on TC. Tezos Cartel will be the driving force behind our PFP renaissance on Tezos. It’s crazy that the best NFT chain in the world hasn’t had a real PFP season, and we’re here to fix that.What’s next: PFPHaus. Merch.🙂 ODDITYWe’ve recently launched a major update to the ODDITY Beta and Roadmap, delivering fixes and a better experience for testers. As you can tell, we are now setting our sights higher for ODDITY. We are preparing to onboard the GT-GFX team to this project to help with UI/UX design.With a new cross-chain focus, we will be building out our MVP and pitch so that we can start fundraising activities in 2025 to cover the smart contract audit.What’s next: Connect with VinylAPI. First exotic markets. Pitch.🐶 TezosInuIf you checked the chain, you know GT had a hand in the recent TezosInu memecoin launch. We didn’t really try and hide it, so if you opened TZKT at any point you already know.TezosInu is a fun side-project for GT that will be focused on growing the TEZINU memecoin on both Tezos L1 and Etherlink. We’ve already innovated with our Anti-Snipe IDO, which led to one of the fairest launches of all time. We’re happy to have almost 2000 holders of the token.We built TezosInu with native ticket wrapping at the contract level, so that we can have TEZINU on L1 and L2s, no wrappers required. Our plan is to release some DApps (fork some EVM contracts) on Etherlink that will heavily integrate the TEZINU token, and then launch new incentives on L2.The token has already been fair-launched and you can verify that we have only 2% of supply, so you can skip the FUD for this one folks! 🐶What’s next: Ticket Tools. InuSwap on Etherlink.⏯️ PauseLet’s take a break here. Up until now, we’ve detailed projects centered around Tezos, our home chain. That being said, GT was formed to be multi-chain and will continue to have a multi-chain strategy.We have been disappointed with some users who FUD because we create and build on multiple platforms. It’s unfortunate that people choose to react this way, but this only makes us appreciate those who truly support GeniusTeam even more.To those who support GT, thank you 🖤Onward and upward, let’s dive into upcoming projects across the entire crypto ecosystem.🟢 EZChainWe are crazy excited for EZChain.The GT-GFX team is currently 100% allocated to this project, and is already cooking up some heat. We will be releasing sneak-peek content soon so y’all can take a look as well.This year, we’ve released the new litepaper for EZChain which details our plans for integrating Rollkit & Celestia to make a high-performing casino chain. Stay tuned for the full whitepaper. We are still on track for our 2025 beta release target.What’s next: New designs. New brand & name. New pitch site.🍩 DoubleDipWe have a new focus for DoubleDip that is going to turn heads in the creator scene on Solana. A new Jabba longpost is coming soon, titled On Distribution.On Distribution is a thesis on how we think a distribution-focused NFT ecosystem will help grow the pie for all crypto-native creators. We’ve already detailed our plans for new products shipping soon under the DoubleDip brand.What’s next: New Longpost. Creator Channels.🕹️ Crypto GamesWe are planning to build crypto-native games using our new DynamicSPL system. DynamicSPL is a new token-type that is built on Solana’s popular Token Extensions program.Read more or try MorphoGame, a DynamicSPL proof-of-concept.Our goal this year is to create a testnet MVP for GUNGAME, an onchain auto-battler game built using DynamicSPL. If you remember the defunct salsadao.io pitch, GUNGAME is modeled after the SalsaStrike game we wanted to build on Tezos.What’s next: GUNGAME MVP.⚔️ Social AppsSince the release of pump[dot]fun, we have been in Jabba’s Test Kitchen cooking up some unique ideas for social games & apps.We can’t say much right now, but stay tuned for more.What’s next: [REDACTED]—We are one of the hardest working teams in crypto, and it shows in how much we ship. Our work in 2024 and beyond will continue to prove this.All Roads 🛣️

GC Drop — Liquid LegendsThe ArtDEX Mascot has arrived!Ready for another Genius Drop?We’re excited to announce that the Liquid Legends PFP collection will be dropping on ArtDEX soon! The Liquid Legends launch will be the next major ArtDEX event, following up the recent Tacos 2.0 event.In the spirit of community, this will be a fully fair-launched collection. Our goal is to build a strong base of holders and liquidity for our new flagship PFP. Let’s dive in 💧The New MascotLiquid Legends base artwork. Trait list drops soon!Liquid Legends will be the new mascot for ArtDEX, pointing to our innovations around NFT liquidity pools and high-frequency NFT trading. This collection is designed and drawn by a Tezos OG 💧Legends will be fair-launched using our NFTfi products like Liquify and ArtDEX Earn. As an extra incentive, royalties will be set to 0% when trading on ArtDEX. Details and teasers for traits are coming soon!Legends will come in Ultra, Rare, and Common tiers.An important note is that these will NOT be SP-enabled, but Liquid Legends holders will be targets for routine SP Crystal airdrops.Legendary TechBefore we move into the launch roadmap, we’d like to give a bit of background on the tech that Legends will depend on.Mixing NFT trading and DeFi has long been a guiding principle for the development of ArtDEX. We refer to this as NFTfi, but the term Hybrid DeFi has gained traction in recent months. Liquid Legends will be a native Hybrid DeFi collection, where the goal is to bootstrap liquidity in both classic NFTs and liquid NFT-backed tokens.We will use ArtDEX Earn to set up NFT yield farms, where users can earn rewards for providing NFT liquidity to ArtDEX. We will use Liquify to handle all conversion from Liquid Legends NFTs to lqLGND tokens.By introducing powerful DeFi primitives to the PFP space, we are able to craft a fully fair-launched drop that’s never been done before on any chain!Legendary LaunchIFO-inspired Fair NFT LaunchThe upcoming release & reveal event is officially called the Legendary Launch. The whole launch event is inspired by IFO-style launches that we have previously done, so don’t be surprised to find parallels with some of our other projects.The Legendary Launch will be a grand tour of what we’ve built across ArtDEX and SpicySwap! Let’s break it down. 👇Auction Phase: Ultras & RaresArtDEX Auctions are perfect for launching high-supply collections, like PFPs.The first phase of the Legendary Launch will be an auction of the rarest items in the collection.Out of 5,000 total items, 200 will be in the Ultra-tier and 800 will be Rare-tier. As we move toward release, we will be posting samples from the collection on our socials. Please note that 100 Ultras are reserved for the team.We will deploy two ArtDEX pools that use our new dutch auction curves, one for Ultras and one for Rares. To increase the suspense factor, all rares will be unrevealed until the completion of the entire auction phase. This means you can potentially get a high ranking PFP!⚠️ Important: We will take ZERO funds from the auction. All XTZ raised will be used for locked NFT liquidity.Hybrid Farming PhaseDon’t want to fight the market for rare Legends? Buy freely from the LP!To start, all XTZ raised from the Auction Phase will go directly into a new liquidity pool on ArtDEX with 2,000 Common items, as shown in the graphic. Any user will be able to immediately buy & sell Legends on ArtDEX when the pool goes live.The remaining 2000 Common items will turned into liquid tokens (lqLGND) using Liquify on ArtDEX. 👇These 2000 lqLGND tokens will be distributed in two farms, as noted above. These farms show the power of Hybrid DeFi; you can farm on ArtDEX or on SpicySwap as you please!As lqLGND is distributed, users can turn them back into solid NFTs via Liquify at anytime. Once the farms are finished, Liquid Legends will have a strong holder and liquidity base across both ArtDEX and SpicySwap.In total there are 200 Ultra, 800 Rare, and 4000 Common NFTs.—The Legendary Launch will be a grand tour of what we’ve built across ArtDEX and SpicySwap, and we simply can’t wait for it!Prepare yourself for Liquid Legends, the next bluechip PFP on Tezos 💧GC

ODDITY — UpdateThe latest info pack is live!GM Geniuses! Today we’re coming to you with a bunch of new info on ODDITY Finance, our upcoming perpetual markets protocol. If you need to review the initial details, check the previous article here.We are still marching forward in development, with the goal of deploying exotic perpetuals for our users. To this end, we have made some important changes to the project’s direction and roadmap! Read all about it 👇Pitch & BetaWe’re happy to share that we’ve fixed an issue preventing users from trying the Ghostnet Beta on Tezos. Users can now try out the 8H XTZ perpetual market on testnet. From our readings over the past few months, our TWAP Oracle system is working perfectly to deliver data on time for funding payments.We’ve also gone through and created an all new pitch site that you can tell all of your friends about! 🙂Multichain FutureWe are going multichain!Our original goal was to stay as an exclusive Tezos project. Due to lack of users & price action, we cannot move forward as a Tezos-only project.Fortunately, ODDITY is the perfect project to go multichain because perpetual markets work well with both small and large userbases. We will deploy markets and hook our API data on multiple chains, allowing ODDITY to grow with no baggage!The plan is to initially deploy on Tezos and Mavryk Network. Mavryk is a new layer 1 that aims to build interest and attract liquidity by creating a world-class digital commonwealth based on DeFi and real-world assets. Mavryk is built using the same VM and execution model as Tezos, so it will be simple to deploy across both chains.After launching our current contracts on Tezos & Mavryk, we will be translating our code to be compatible with EVM, so that we can deploy on popular chains like Base, Fantom, and Arbitrum. 🙂ODD TokenomicsAdmittedly, our token sale on Tezos didn’t attract many interested users. Still, we have only gotten more bullish on ODDITY after our latest development cycle. We’ve had conversations with potential tech partners which confirmed to us that we are on the right track. We’ve decided to rework the original tokenomics that we decided upon last year.Since ODDITY’s future is multi-chain, we are going to need a new token strategy that will work across all chains. We’ve settled on a two-tiered approach. Before full release, we will be issuing what we call the mother token, which is $ODD. Rather than give you rights to any yield, ODD will give you rights to receive satellite tokens for each chain as we deploy them.Example: if we are deployed across Tezos & Mavryk, then we would need to deploy $tzODD & $mvODD as satellite tokens. For satellite tokens, 100% of fees from the platform are paid directly to those who hold them. So all fees from ODDITY on Tezos would flow into tzODD.This gives us the flexibility to add things like staking & treasury to ODD tokenomics while keeping the yield tokens clean. We have not decided what chain to deploy ODD on, and will update the community when we do. We will reserve a percentage of ODD supply for TokenPack holders to claim. 🙂New PartnersODD x Vinyl APIsAs previously mentioned, we have been speaking with teams interested in perpetual markets and oracles. Our data needs go beyond simple token price feeds, so we have been working to find a partner that will help us with custom data delivery solutions.Vinyl API will be leading efforts to find data feeds from different industries, like sports betting & government. The Vinyl team is building us a scalable delivery system which will aggregate feeds & transform data that will eventually land in our onchain oracles.We can’t say much more, but we are excited to start working with our new friends at Vinyl to deliver data that is critical for our exotic markets. 🙂Note: we will reserve a percentage of ODD allocation for Vinyl.—ODDITY is moving along steadily. With a refreshed look and a new multi-chain focus, we are on the road to delivering exotic perpetuals that no other app has!We hope you’ll support our journey and try the Ghostnet Beta.Follow Genius Contracts on Twitter for all the latest updates.GC 🙂

We’re bringing ‘21 back.Spring is coming. Sentiment is rising. OGs are returning.We don’t want to jinx it, but it feels like 2021 again. We want to capture that feeling. So, we’re hosting a celebration of our own history on Tezos.Tacos 2.0 is next. Let’s dive in.Tacos?The history of the tezostaco.shop project is one filled with deep lore of the Tezos ecosystem. Back when your favorite Tezos founders were still in the trenches, trading new tokens in first era of DeFi on Tezos, a new project emerged from the shadows.Yep, that’s me.Before Genius Contracts, SpicySwap, Matter, ArtDEX, Tezos Cartel, and everything else, there was just Jabba. The tzTacos event was my first ever DApp and launch on mainnet.My goal was simple, create a new type of NFT with onchain metadata, and mint them infinitely to anyone who cared. The response was overwhelming, and I was hooked on Tezos development.The demand for tzTacosV1 led to tzTacosV2, which still has 20k XTZ locked in a contract (that I will someday get back with an onchain proposal). The success was a spark; I then went on a 3 day hackathon to develop and deploy sDAO/RSAL and the first yield farms on Tezos.The combination of yield farms, new tokens, and tzTacosV3 created a feverish surge of degenerate activity only exceeded by the rise of HEN. After tens of thousands of taco NFTs minted, the party finally ended, and the 3+ year journey of Genius Contracts truly began.EvolutionTacos 2.0 is a celebration. We can feel the recent energy surging back into the Tezos ecosystem, and we want to contribute. Further, there were some missed opportunities with the original tokenomics of the tzTacos event that we can improve on.The essence of the Tacos meta-game will not change. This is a PvP market, meaning that you are competing with other degens for your rewards.Please understand this before playing. It sounds scary but the buy-in costs will be low, so you’ll be able to join and interact with low risks.Player vs. Player (PvP)The core facets of the Tacos 2.0 PvP game are Minting and Farming. Mint Tacos and you’ll be able to pair your them with XTZ and provide LP in ArtDEX Earn to receive rewards.This pathing is similar to the tzTaco > RSAL LP farming path in the original tzTacos project. This time around we will be using the NFT LP farming system on ArtDEX, so there is no need for an extra intermediate token.Just like the original, the price of Taco NFTs will start at very small number and increase after every purchase.The other facet to this PvP market is that some users can choose to play by buying Taco NFTs and selling them into the LP on ArtDEX. This is expected, and should be understood by players before playing.RewardsWe are going to sponsor a pot of rewards for players.The initial farm on ArtDEX will be loaded with 500 WTZ, emitted over 1 month. Once the primary farm completes, we will load up a 3 month farm with 500 SP Crystals.Bonus for Taco holders.Again, this is a PvP market where other users can sell into the liquidity on ArtDEX. This means there will be Taco NFT bagholders at the end of all the farming, and we want to make sure they are taken care of.Once all farms end, we will apply 1000 SP across all existing Taco 2.0 NFTs. This ensures that holders get rewarded, in addition to short-term farmers and PvP sellers.Ex: If there are 10000 Tacos, each would gain 0.1 SP.A New LookWe want to touch on an important organizational update.One of our close contacts recently started up a small graphic design group, and we’ve been in the background trying to get them to help out GeniusTeam with our various projects.We’re proud to announce that this new team will be joining GT as a partner, with Tacos 2.0 being the first project they’re helping on. We’re excited to build an updated Tacos game with their help.—Tacos are back and tastier than ever 🌮️Keep following, and stay tuned for updates. Thanks for all the support!GC

GC Drop — The GameHubFrom Vegas, with love.Hello Geniuses! We hope you enjoyed your holiday season. Over the last few weeks, we’ve had a very Merry Shipmas! During Shipmas we’ve celebrated the Tezos community by shipping ArtDEX Earn, ArtDEX Auctions, Liquify, new features on SpicyHD, infrastructure updates, and more!The best part? Shipmas isn’t over.We’re proud to announce that a new casino is coming your way! Read on for all the details.The InspirationWe’ve wanted to re-open the SalsaDAO Gaming Hall for some time. After a recent team trip to an AWS re:Invent conference in Las Vegas, we were inspired by the bright lights of Vegas to rebuild our gaming hall from the ground up.Our goal is to bring Vegas to Tezos with a fresh new UI and new incentive structures.Under New ManagementTezos Cartel x Genius ContractsWith the rebuild, we needed a rebrand. In 2023, we started a general partnership with the Tezos Cartel team to support their project from the technology side.The GC team agreed that the Tezos Cartel brand would be a perfect home for the new casino. We’ve already launched their CartelID membership NFTs on ArtDEX, and we are assisting with the upcoming PFPHaus project, slated for early 2024 release.We’re happy to announce this expansion of our partnership, with Tezos Cartel becoming the new operations team for the rebuilt casino. The new casino will sit on the Tezos Cartel HQ website, and the TC team will be responsible for support, casino challenge events, and player rewards.The GameHubWhile the TC team will be managing operations, GC is still developing the new smart contracts and SDK, as part of the SalsaDAO GameHub protocol. The GameHub is an update to the previous Gaming Hall contract, so users can be assured our battle-tested core features still stand strong.Let’s review what’s new.Global GPPreviously, we tracked GP per currency and paid out players according to their amount of GP in each currency. This incentive structure was too tilted to early players, who could get cheap GP early and farm fees without playing anymore.We’ve changed GP to be a single global value per address, and you’ll only get global GP when you play with certain currencies. Going further, there will be no more automatic payouts for simply having GP.Player IncentivesWith GP payouts deprecated, we are launching new player incentives that are more aligned with the casino experience. The Tezos Cartel team will be in charge of distributing recurring airdrops to our most loyal players, in addition to running events like short-term GP Weekend contests.We will also be adding new negative house-edge games, where the user has a positive expected return from playing, rather than the house. Playing reverse-edge games will require burning one GamePass NFT per play; the GamePass will be one of the key rewards airdropped to players by Tezos Cartel.Along with reverse-edge game passes, players will be rewarded with SP-enabled NFTs that can be used to farm fees from SalsaDAO DApps.SalsaDAO VIP BenefitsGP payouts have ended, but we are keeping the bankroll invest & divest fees. These fees will now be routed to SalsaDAO VIP Staking, similar to ArtDEX trading fees.This brings new utility and earning potential for both $sDAO stakers and SP-enabled NFT holders. To support our VIPs, we are building a new VIP staking portal that will help users manage and claim their earnings.Hosting FeeTo support the ongoing development and operation of the new Cartel Casino, we’ve added a small hosting fee. The hosting fee is essentially a minor tax on the house-edge. GC and TC will split this fee.The fee only applies on house wins, so players will never pay the hosting fee.—The best casino on Tezos is coming back in force!We are at the 90% completion mark and will be shipping to mainnet in just a few days. Follow Genius Contracts and Tezos Cartel on Twitter!GC