MoonSwap [Alpha Tractor]
Find out about MoonSwap and their $MOON governance token
THIS STRATEGY IS BRAND NEW AND EXTREMELY RISKY. MOONSWAP HAS BEEN AUDITED BUT IS NOT RISK-FREE. TRADERS SHOULD APPROACH THIS STRATEGY KNOWING YOU MAY LOSE 100% OF YOUR FUNDS.
This is part of the Alpha Tractor series - giving you intel into the freshest yield for the most honest farmers only.
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What do you call a vampire's vampire?
In one of the craziest weeks in DeFi to date, MoonSwap's launch promises to significantly lower transaction costs, bring cross-chain interoperability, and up to 6,000 transactions per second (TPS) by leveraging Conflux, a layer two solution, to the Automated Market Makers (AMM) space in Ethereum.
Just as Sushiswap migrated most of the TVL it had added to Uniswap, MoonSwap plans to migrate the liquidity it helps allocate to Uniswap and Sushiswap to their contracts after seven days from protocol inception.
Early amendment after community backlash
After an initial community backlash due to a lack of proper measures to avoid a rug-pull and concerns about early minting, MoonSwap's team implemented a 24 hour time lock. It also destroyed the initial 1.25M it had minted for community incentives.
How to farm $MOON
Farmers can farm $MOON governance tokens by adding liquidity to both Uniswap and SushiSwap pools and staking their LP tokens in the MoonSwap pools.
At the time of writing, MoonSwap pools offer APYs in between 300% and 1000% for adding DeFi Tokens liquidity, and up to 5000% for proving liquidity of the previously harvested $MOON tokens to the MOON-ETH pool in Uniswap and staking the LP tokens in the MOON pool.
Please note that starting at Sep 13,01:14 UTC the multipliers shown in each pool will be updated to the following:
Uniswap pools
MOON-ETH（48x rewards）
CREAM-ETH（1x rewards）
FARM-USDC（1x rewards）
SWRV-ETH（1x rewards）
YFII-ETH（1x rewards）
DF-ETH（1x rewards）
FOR-ETH（1x rewards）
SushiSwap pools
ETH-USDT（4x rewards)
USDC-ETH（4x rewards）
DAI-ETH（4x rewards）
sUSD-ETH（4x rewards）
SUSHI-ETH（4x rewards）
COMP-ETH（4x rewards）
YFI-ETH（4x rewards）
LEND-ETH（4x rewards）
LINK-ETH（4x rewards）
BAND-ETH（4x rewards）
SNX-ETH（4x rewards）
UMA-ETH（4x rewards）
$MOON's total supply is 100M and distributed in a seven-year and a half period. 10% is being reserved for the team, and the remaining 90% will be distributed to the community with the following schedule:
Genesis Mining:100 MOON/block,total 50,000 blocks(~7 days)
Stage 1:10 MOON/block,total 5,000,000 blocks(~1.9 years)
Stage 2:5 MOON/block,total 5,000,000 blocks(~1.9 years)
Stage 3:2.5 MOON/block,total 5,000,000 blocks(~1.9 years)
Stage 4:1.25 MOON/block,total 5,000,000 blocks(~1.9 years)
But there's a twist.
LPs will receive 0.25% of the 0.3% trading fees that MoonSwap will charge, and 0.05% of that amount will be used to buy $MOON and destroy them, making $MOON deflationary.
Why should you care?
MoonSwap is the latest comer to the vampire mining saga and promises to deliver an AMM that will live directly in layer 2, which, if successful, could be really interesting to the industry as a whole.
Stay safe and happy farming!
To keep an eye on MoonSwap, follow the project on Twitter, or join the conversation on Discord.
All info in this newsletter is purely educational and should only be used as research. DeFi Pulse is not offering investment advice, endorsement of any project or approach, or promising any outcome. This post is prepared using public information and does not account for specific goals or financial situations. Be careful and keep up the honest work!