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The Tezos Blockchain and its hidden DeFi Gems #2

By 2sats | 2sats | 12 Sep 2021

*obligatory not financial advice*


I strongly encourage you to read my last post if you haven't already: The Tezos Blockchain and its hidden DeFi Gems

Just as a quick summery; Tezos is a smart contract blockchain that is growing in popularity fast. It has a boom ecosystem and DeFi is growing steadily. Amongst all the new and upcoming DeFi apps there are many opportunities to earn brand new tokens that could grow a lot in value.

In my last post I showed you 3 projects with tokens that are not even listed on Coinmarketcap or Coingecko yet. Here I want to show you 2 more.




Wrap offers a decentralized way of wrapping your Ethereum assets, so that you can use them on Tezos. It is similar to REN but so far it only connects Ethereum and Tezos. If you want to use Ethereum stablecoin DAI on Tezos you can swap it on Wrap for wDAI. Most popular stablecoins like USDC and DAI as well as tokens like AAVE, COMP or MKR are supported and can be swapped for their wToken counterparts. This makes it possible to integrate them with DeFi app on Tezos. This seems to be a very popular way of bridging from Ethereum because they are supported by many different applications.

Wrap also has its own governance token called WRAP. You can buy it on both PlentyDeFi and Quipuswap and it can be staked to earn swapping fees. The fees are paid out in wTokens, if you stake WRAP in the wETH pool, you will get wETH as reward. The APYs are very high with more than 15% in most pools.

Currently you can earn WRAP tokens by staking Quipuswap Liquidity Pairs of XTZ and WRAP or various wTokens for APYs of up to 350%!





2. Kolibri

Kolibri offers are decentralized stablecoin called kUSD that is over collateralized with XTZ. It works similar to Maker and DAI as it allows everyone to mint new kUSD as long as the deposit a collateral for it. They can only get the collateral back if they burn the borrowed kUSD. It’s basically the Maker Protocol of Tezos.

The kUSD stablecoin is the most popular stablecoin for DeFi apps on Tezos and is supported pretty much everywhere where a stablecoin is needed. Kolibri itself also offers ways to earn crypto. Should a loan become less than 200% collateralized, because the XTZ price crashed for example, it will be repaid by a unique liquidity pool of kUSD holders and the locked up XTZ will be realised and swapped for kUSD and this will be paid to anyone who staked their funds in the pool.

People that stake their kUSD receive QLkUSD (Quipuswap Liquidating kUSD) in exchange until they redeem it for their initial funds and the interest. This QLkUSD as well as kUSD can also be both used to farm kDAO, the governance token of Kolibri. This token will give its holders voting rights for possible updates and changes to the protocol. Like with most DeFi tokens, its value depends on how much money is locked in its smart contracts, if DeFi continues to grow on Tezos then Kolibri and its governance token will likely grow with it.

Currently you can earn 1 kDAO per Week per 624.44 kUSD, or twice as much if you convert your kUSD to QLkUSD and stake it.






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