*obligatory not financial advice*
What is Tranquil Finance?
Tranquil Finance describes itself as a "multiprimitive DeFi super app for the Harmony blockchain" and it offers several useful DeFi and GameFi services. It recently became part of the Defira Metaverse and many of its applications can be accessed from the website of the game and its token also has utility there.
Tranquil Finance has its own decentralized exchange that was forked from the Uniswap DEX and also runs with liquidity pools and an AMM. The prices are set automatically based on how many tokens are supplied in their trading pairs and there is a 0.3% trading fee for each swap, 0.15% of that is going to the liquidity providers and 0.15% is going to the stakers of the native TRANQ token. If you provide liquidity to the DEX, then you can stake your liquidity pool tokens to farm the TRANQ token, but there are withdraw fees for unstaking that get lower the longer you keep your LP tokens staked. You can find the DEX directly on the Defira website.
There is also a lending protocol that was forked from the Compoud code and it works like any lending protocol like Aave and Venus for example. You can supply supported cryptocurrencies to earn interest from lending and you can borrow tokens if you leave a collateral. Interest rates are set automatically based on how much is being borrowed and how much of a token is supplied and should the value of your collateral fall or the value of your loan rise to a certain point, then the protocol will sell your collateral to pay for your loan.
Tranquil also makes it possible to stake your ONE coins while keeping them liquid and letting you use them in DeFi. This process is somewhat similar to Lido. You can deposit ONE and in exchange you receive stONE that is backed by staked ONE coins. You can deposit stONE in DeFi applications like the Tranquil lending protocol to earn additional interest on top of your staking or you can use it as collateral to take a loan. The staking rewards are added to the staked ONE of the pool each hour, which means that your staking rewards are also being compounded. Initially 1 ONE was equal to 1 stONE, but since the rewards are added to the pool instead of being distributed, the value of stONE is constantly growing. You can burn your stONE to retrieve your share of your ONE and the earned rewards.
Last but not least, the native TRANQ token has utility in Defira as an in-game resource and can be used for things like buying new heroes. The TRANQ used that way is being permanently burned. The native token of Defira FIRA is also being distributed to stakers of TRANQ.
Tranquil is currently the second most used dApp on Harmony and it truly could grow to be a DeFi giant thanks to all the utility it has on Harmony. It unites many great DeFi tools into a single platform and is partnered with a popular blockchain game.
The TRANQ Token
TRANQ is the governance token of Tranquil Finance. It is used to vote on changes to the protocol or to certain parameters like fees. You can also stake and lock the token for 6 months to earn a large share of the collected protocol fees, the fees you earn are paid out in all of the different tokens that the protocol supports. If you unstake your tokens before the 6 month lock up is over, there will be a 50% penalty for your TRANQ that are being burned. You can also use TRANQ within the Defira game.
There is a max supply of 1,000,000,000 TRANQ. 50% of that supply is being used as reward for liquidity providers, lenders and borrowers and the like, 28% of the supply went to a treasury that is controlled by the founders and is being used for things like strategic partnerships, 10% went to the founders directly, 10% were sold to investors in multiple sales and 2% were used to kick start the initial liquidity on various DEXes. Plenty of the supply is going to the users, but the founders do control a large part of it, although they use it for further improvements. The emission of new tokens is somewhat flexible because the founders didn't agree to commit to a hard emission curve, but the emission is expected to last at least 4 years to prevent a too strong inflation and sell off by farmers.
The value of the token depends on how many people use the protocol and how much money is located in its smart contracts. That is because the voting rights will have more demand if they effect more money and also because there will be more fees that the TRANQ stakers will earn. Because most holders of the token will want to earn the rewards there will be many tokens that are locked for multiple months, which will make it hard for many people to dump the token in the short term. Tranquil has many great applications with great utility and provides a lot of value to the Harmony blockchain and if Harmony performs well, then so will Tranquil. However, the founders do control a lot of the supply as well as the emission of new tokens.
The TRANQ token is not listed on most centralized exchanges but you can buy it on the Tranquil DEX itself which you can find on Defira. You can also buy it on the Harmony version of the SushiSwap DEX. You can use a normal MetaMask Wallet to store your TRANQ and interact with its applications, if you connect it to the Harmony blockchain.
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