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Introduction
This article will cover just my perspective of Fantom’s current DeFi ecosystem and the absolute degeneracy of the players in this space. If you have been in the DeFi space for awhile I’m sure you’ll be familiar with terms such as LPs farming, APR, APY, etc. I’ll skip all that and jump straight into what I’m currently interested in on the Fantom ecosystem. In particular, this whole article will centre around Tomb Finance.
What is Tomb Finance?
Tomb Finance aims to be a stablecoin pegged to the value of FTM. The reason why they felt there was a need for the TOMB token in the first place was due to the high amount of FTM being staked with validators. Right now, this amounts to 54% of all FTM in existence. This leaves the remaining 46% to interact with DeFi and provide liquidity for both decentralised exchanges and centralised exchanges. By creating the TOMB token and if adopted, liquidity in the whole fantom ecosystem could theoretically be increased without impacting price of FTM or security of the network.
Tomb Finance works by having an inflationary mechanic via minting of more TOMB for holders of TSHARES and a deflationary mechanic when TOMB is below 1.00 FTM, TOMB can be bought, burned, and exchanged for TBONDS which you can claim for even more TOMB when TOMB is worth more than 1.01 FTM.
This mechanic has a point of failure in that when nobody believes that TOMB will rise and restore the…
