Holding crypto assets is all well and good, but really, they need to earn their keep. How do you do that? Your bank might give you a generous 3%, and your centralized exchange might offer 10%. But you are a degen, you deserve more! Staking on Fantom (FTM) is a good place to start.
- Delegating $FTM
- Yearn Vault strategy
- Tomb Finance strategy
- Auto-compounding with Reaper
We’ve got you, Banter Fam, with these strategies to make profits on your Fantom in three major ways: staking, yield farming, and airdrops.
Staking is simply locking up your coins to secure the network. In return, you earn rewards. Yield farming involves staking two or more crypto assets for higher returns. In yield farming, you act as a liquidity provider (LP). Providing liquidity earns you a share of transaction fees and governance tokens. But keep in mind the returns might increase or decrease as other users add and remove funds from your liquidity pool.
Finally, there are airdrops available to you, if you choose to stake your Fantom on the platforms we will be discussing in this article. Stay tuned!
Delegating $FTM in the Fantom fWallet
Fantom fWallet staking is suitable for long-term investors who like to buy and hodl without any risks. You can choose between lockup times according to how long you want to hold FTM. The longer you lock, the higher your returns – up to 14.15% !
How do I do it?
- Go to https://fwallet.fantom.network/ and create a new wallet if you don’t have one
- Send your $FTM to the wallet and delegate it. That simple!
Yearn Finance staking
If you want quick access to your FTM at any time while earning yield, Yearn Finance is your friend. Few people know that these days the giant DeFi ecosystem operates outside of Ethereum and is supported on the Fantom network. In Yearn Finance, you can earn an additional 13.55% on your $FTM tokens.
How do I do it?
- Go to https://yearn.finance/#/vaults
- Switch the network to Fantom.
The process is straightforward. First, swap your $FTM to $WFTM on Spookyswap. Then you can stake the $WFTM in Yearn vault for 13.55% annual percentage yield (APY). There is no lock-up involved, so that comes as a bonus.
Tomb Finance strategy
Before getting into the strategy, there’s something important happening here soon. Andre Cronje is doing an airdrop of his DeFi coin – dubbed ve(3,3) – to the top 20 Fantom protocols.
To be eligible, you will have to participate in any of the top 20 protocols by total value locked (TVL) on Fantom. So, in addition to massive APY, you will be getting a share of the airdrop too.
Besides Andre Cronje airdrop, Tomb Finance is doing another exclusive airdrop.
Further, Tbond holders will get 2x rewards.
Now without further ado, let’s dive into the strategy.
SpookySwap is an easy-to-use DEX and has simple liquidity pools. You can use it to swap between your Fantom coins and create LPs for using on high-yield farms like Tomb Finance.
We’re using it here for Tomb Finance, but you can provide liquidity to a variety of other farms like fUSDT-FTM, which gives 82.57% APY.
Ran has been tweeting about and mentioning Tomb and TSHARE in previous shows. He even gave a glimpse of the strategy too.
How do I do it?
- Go to https://spookyswap.finance/add.
- Add FTM and TOMB to the pool and get FTM-TOMB LP tokens.
- Now head to https://tomb.com/cemetery and deposit TOMB-FTM LP to earn an APY of 124%.
- Here you will earn TSHARE, which you can sell to FTM and stake even more LP. This is a cyclical process that will give you excellent yields.
Alternatively, you can go to https://tomb.com/masonry and stake the TSHARE to earn more TOMB at an APY of 240.87%. Now again you can take this TOMB and stake to earn even more TSHARE!
Here comes the tricky part. When to sell TOMB?
TOMB works in cycles. Its price is pegged to the FTM token price, but the peg can go above or below FTM depending on the market conditions.
When the peg goes below 1, TOMB is said to be under pegged to FTM. So, when TOMB is under pegged, Tomb Finance sells TBOND to sustain the peg. Market buys TBOND using TOMB, and Tomb Finance burns the TOMB they earned in the trade. This pushes the price of TOMB and it maintains the peg to FTM. Likewise, the TOMB-FTM peg goes above 1. You can claim TSHARE rewards every 18 hours and the claimed TSHARE remain locked for 36 hours.
Now let’s set the technicals aside and discuss what you need to do when the peg goes above 1 (over pegged). When the peg is above, you can sell your TOMB and TSHARE to FTM. Mostly you will see a hike in the price of TSHARE at that time. When it goes below peg, you do not get any rewards. The peg has gone below on only 12 of the last 100 days. So your chances of not getting rewards are low.
When TOMB is under the peg, TOMB holders should buy TBOND to help the price return to the peg and benefit from the discount. When you buy TBOND, TOMB are burned, reducing the supply and driving the TOMB price up, making your TBOND more valuable as more users bond their assets with you.
Pro Tip: You can use an auto-compounder like Reaper. Reaper stakes TOMB and FTM. Every couple of minutes, Reaper automatically withdraws the rewards and re-stakes them, giving you an even higher return!
This is a great time to be staking on Fantom. Your crypto holdings should give you maximum returns. But to get those life-changing gains, you must put your assets to work, so that you can choose not to work forever. The Fantom ecosystem is very hot now. Choosing to stake not only gives you returns on your holdings but also puts you in the line for airdrops.
A bonus is that you can learn how to use the networks in the process of staking your Fantom. Unlike Ethereum transactions, Fantom’s gas fees are cheap. The more you use the network, the more comfortable you’ll feel. Which will help you find better yield opportunities. Nothing can hold you back then!