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Tomb Finance: Hedging TSHAREs

Loiynes
5 min readJan 3, 2022

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If you have followed my previous articles, you would probably have guessed that I’m heavily degen invested in Tomb Finance. I also mentioned previously how you could use FTM-stablecoin pairs to hedge a dump in FTM price (If you did this, you missed out on the recent FTM run). One of the reasons I feel comfortable enough playing with Tomb Finance is that my only goal is to increase my stack in FTM, and I wouldn’t mind giving up a little bit of yield to reduce losses, which I can do by shifting TSHAREs from the Masonry to LP in the Cemetery.

To farm yield with Tomb, you can choose to farm the TOMB-FTM pair or the TSHARE-FTM pair by staking the LPs in the Cemetery or you can farm TOMB by staking TSHAREs in the Masonry. Because of the nature of how TOMB maintains its peg, I deem the TOMB-FTM pair to be the least risky strategy and also where the bulk of my allocation is. On the other hand, you could take on the most volatility by farming TSHAREs in the Masonry and arguably the most popular strategy on Tomb Finance judging from TVL as seen below and also the strategy that generates the greatest amount of yield.

stats.tomb.finance

Interestingly, not much love is given to the Cemetery TSHARE-FTM pair strategy which I personally think is underrated. I mentioned previously how the valuation of TSHAREs will have some level of dependency on its ability to mint TOMB in the masonry and over the…

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Loiynes
Loiynes

Written by Loiynes

Interested and invested in Crypto since 2017. Particularly interested in tokenomics.

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