Last summer, Compound created the first incentivized money market on Ethereum, and started ‘paying’ depositors and borrowers $COMP tokens. $COMP are ‘valueless governance tokens,’ but are very liquid and are likely going to be considered as protocol ownership tokens in the future. This concept lead to explosive liquidity growth, a rush of stablecoins and other ERC-20s into the Ethereum DeFi ecosystem, and arguably kicked off the most recent crypto bull market. It was a glorious time…one we can all hope to experience again, or for the first time.
Fantom is presenting an opportunity in the next couple of weeks. Scream Finance, Fantom’s first native money market and a fork of Compound, will launch its DApp and liquidity mining program on or after July 31. I have been impressed with Scream’s marketing and patient development cycles, they’ve made all of their code and documentation public, and are partnering with Tomb Finance’s Launchpad for their IDO and public sale.
The public sale price of $SCREAM is $9 and the total token supply will be 2 million. They will accept $FTM tokens in exchange for $SCREAM.
I anticipate a small amount of upside to $SCREAM because there will likely be a pool 2 (SCREAM/FTM) that is heavily incentivized once liquidity mining starts. However, this pool comes with impermanent loss risk. More sustainable yields will be generate from single sided deposits and loans from the SCREAM platform. All deposits and loans are incentivized with $SCREAM, just like the good old days on Compound. Here’s a full list of assets that will be included with the initial platform launch:
Guide for buying $FTM in DeFi and setting up the Fantom network on Metamask: https://ethropy.substack.com/p/a-narrative-play-on-the-fantom-blockchain
Thread on my bullish $FTM thesis: