Growth DeFi, which harnesses the power of DeFi protocols to enhance capital efficiency and value, is following through on its cross-chain expansion plans with their upcoming launch on Fantom (FTM).
Growth DeFi has previously launched on the Binance Smart Chain (BSC) and Avalanche (AVAX). This has led to opportunities to further improve its ecosystem, with a sharp focus on achieving “sustainable” tokenomics, consistently greater yields, while also increasing benefits for their community and loyal token holders.
Growth DeFi says it will be applying the most innovative approaches to subsequent chains and their planned launch on Fantom should greatly benefit from this as well. Fantom will be their very first chain expansion with a 100% bonds-based launch, meaning that there won’t be a need for liquidity providers or LP mining.
The update also noted that with Olympus Pro bonds currently live on Fantom, this approach should allow them to have deep liquidity, right from the beginning, as it may lower the WHEAT token price volatility, which is an issue experienced during previous launches on Avalanche and BSC.
To provide more context for the benefit of a “bonds-only” approach, it’s worth noting that after deploying Growth DeFi on Avalanche, around $4 million had been paid out to LPs in exchange for them offering adequate liquidity. And in many instances, LPs had sold off their WHEAT tokens in the market, resulting in the token price depreciating significantly.
However, the developers have now teamed up with Olympus DAO, so that they no longer need to rely on “renting liquidity.” On Fantom, it will now actually be the Growth DeFi community that can benefit from implementing protocol-owned liquidity from the start, with the value accumulating consistently for their project’s token holders.
WHEAT (FTM) will get airdropped to BSC WHEAT and Avalanche WHEAT holders. BSC holders will receive 60% and 40% of the total tokens will get airdropped to Avalanche WHEAT holders. To qualify, users need to have their WHEAT tokens staked on BSC or the Avalanche blockchain network.
At present, the full details on the Airdrop have not been shared, since they are being finalized. The Airdrop will most likely take place about a week post-launch and the team will provide updates on all the details as they get closer to the official launch.
During the launch, around half of the bonds should be channeled towards WHEAT liquidity. Once sufficient liquidity has been maintained, the focus will go towards acquiring EBC assets.
In this case, emissions are quite predictable because users know just how much WHEAT there can be at a particular date, provided there are no burns taking place. Moreover, as emissions can be anticipated, it allows the project team members to provide actual economic estimates.
Via Olympus Pro bonds, the team expects to add several key bonds, LPs, and assets across all chains, including: WHEAT/MOR LPs; WHEAT/FTM LPs; GRO/MOR LPs; gOHM/MOR LPs;
WHEAT/AVAX bonds; gOHM/AVAX bonds and EBC/
Growth DeFi noted that it’s looking into the opportunity to add WHEAT EBC (Exponential Buyback Collector) strategies, like TriCryptoV2 via Curve Finance, which may be accumulated via bonds. This should mean EBCs are retaining underlying collateral, such as gOHM, BTC, ETH, as well as stablecoins.
For the TriCrypto EBC, since it maintains an allocation of 1/3 USD, 1/3 Bitcoin (BTC), and 1/3 Ethereum (ETH), it’s considered to be a “semi-bullish” asset that may be held during any period.
And only the yield of these EBCs may be used to buyback and then burn WHEAT tokens, without having to spend the principal amount. This approach offers steady buy pressure for WHEAT as their WHEAT EBC balances only increase.
Ahead of the upcoming MOR launch on Fantom, the team is working on an approach to establish Curve and Ellipsis stablecoin pools for a PSM. This should help with boosting MOR surplus profits. And this should allow them to decrease the MOR peg spread from $.99–$1.001 to around $1.00–$1.001.
Growth DeFi added that they will aim to reduce the PSM spread to enable swapping between different stablecoins such as USDC, DAI, USDT, and MOR at affordable costs. Currently, there is no fixed date for the Growth DeFi’s launch on Fantom. They are making the necessary preparations so that they can ensure the highest level of integrity and security.
The Growth DeFi team said that they expect to go live on Fantom around the beginning of this year. The team is also working on partnerships with major operators on the Fantom chain.
