Although leading DeFi platforms have attracted billions of U.S. dollars for liquidity pools, they still leave a lot to be desired.
Protocols face a range of critical issues that affect usability and contributors’ profits. The SpaceSwap project promises to become a one-stop-station for all major DeFi services and is offering extra sources of profit as well as a wide variety of liquidity pools.
The DeFi industry has been among the fastest-growing FinTech sectors in 2020, with liquidity pools collecting tokens worth over $9 billion in August. While Uniswap is still in the leading position with its 17% market dominance, there’s a number of unicorn projects performing nose-to-nose with it. According to DeFi Pulse - Maker, Curve and AAVE each have over $1 billion locked in their pools.
All of the above-mentioned services have pretty much the same underlying mechanism. Users make a deposit in cryptocurrency, exchange it for pool-specific tokens (for example, aETH, yDAi and so on), and add them to liquidity pools. In return, they receive loan interest rates. Passive earning ceases once lenders claim their coins back.
Compound offers 2-12% APY for stablecoins with Curve’s current rates at around 4%, AAVE gives 2-6% in interest rates, while Celsius’ average APY is 10%. Is this enough for liquidity providers? As opposed to traditional loaning, DeFi protocols offer varied APY rates. This percent is always fluctuating, which means it’s hard to predict the final profit. With an ever-changing demand/offer ration in the market, users’ earnings might be lower than expected.
Modern Decentralized Finance services have serious flaws:
Complicated interfaces make liquidity management challenging for crypto newbies and non-experienced users.
Due to their open-source code structure, there’s a large number of forks and clone projects popping up. That puts the platform’s infrastructure at risk.
It goes without saying that most services charge a high ETH gas fee, which further decreases profits.
The above-mentioned issues beg for a new incentivization system to motivate users to provide more liquidity. That’s why fork projects for ‘vampire yield farming’ are evolving in full-force.
Yet, SpaceSwap is a primary candidate to outperform other DeFi players. What’s so special about this platform?
This is a new protocol that aggregates DeFi protocols. It’s developers call it the ‘one-stop-station for major DeFi services’ and have ambitious plans to make it the major player in the DeFi industry.
So far, the roadmap roughly includes three major steps:
SpaceSwap’s launch on 10th September 2020 will start with improving the Uniswap protocol with extra features and tools added.
In Q4 2020, the team plans to start supporting Curve, Compound, Yearn and wBTC products.
In Q1 2021, SpaceSwap can turn into the only DeFi superstructure that covers major DeFi protocols in one place.
Thus, SpaceSwap promises to become a one-of-a-kind project that gives liquidity providers additional means of profit-making. While conventional protocols are designed to bring liquidity providers only the loan interest, SpaceSwap takes it a step further and introduces a new scheme of yield farming.
Aside from the high APY rates, users will enjoy additional incentives in the form of MILK tokens, not to mention quick access to all major liquidity pools for DeFi & CeFi protocols, Oracles, lending protocols, synthetic assets... and so on.
“SpaceSwap is not just about yield farming - it will revolutionize the DeFi industry by providing a fair and profitable protocol for efficient crypto liquidity management. Leading platforms like Uniswap generate earnings only while users keep their assets in liquidity pools. It’s high time to change the rules of this game - SpaceSwap LP’s will earn MILK tokens on top of APY rates and reap benefits from ALL DeFi Protocols combined ”
- says the SpaceSwap development team.
Reportedly, the team received hundreds of liquidity claims from early investors. While SushiSwap developers plan to get 10% SUSHI after the generation of blocks and reward distribution, the SpaceSwap team will have only 3% left.
SpaceSwap DeFi protocol promises to change the way users earn profits from liquidity pools and revolutionize the approach to yield farming. It will be launched on 10th September and early investors are promised extra perks and premium features.
The DeFi industry is in its early stages of development and is not devoid of substantial flaws and drawbacks. SpaceSwap may solve the problems of usability and low profits by providing a more eligible model for passive income and incentivization. This future one-stop-station for major DeFi services has what it takes for getting to the moon.
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