According to Defilama for Tezo blockchain there is only 4 DEX that support TEZOs block chain one of them is Plenty Defi with TVL of 1.9 million dollars. It is the second most TVL DEX after QuipuSwap. There are total of 10 protocols that support Tezos blockchain listed there. I will show you how to dabble in Tezos blockchain defi using PlentyDefi protocol.
What is Plenty Defi DEX?
Tezsure and Bender Labs merge their protocols with an all-in-one DeFi experience on the Tezos blockchain. Tezsure is the team of engineers behind Plenty and Bender Labs is well-known for building the first bridge from Ethereum to Tezos through Wrap Protocol.
By merging the technology and liquidity of Wrap and Plenty will create a complete DeFi experience on Tezos. It is a single platform for bridging, trading, and earning. This merger created a new token called PLY. WRAP and PLENTY holders will be eligible to swap their tokens for the new token PLY.
The merger of Wrap Protocol with Plenty’s Automated Market Maker (AMM) with flat curves, bridges, and features of checker are most advanced and complete DeFi protocols on Tezos, bringing unparalleled value to token holders and the Tezos ecosystem! WRAP and PLENTY holders will be able to swap their tokens for PLY. Plenty's flat curve to improve the onboarding of users to cTEZ. It almost like impermance loss free farms because it hold assets of same value in both pairs.
How to Mint Ctez from TEZ
Next I will show you how to Mint CTEZ tokens from TEZ (tezo) Tokens in your wallet.
Ctez, is a collateralized tez that is fungible, decentralized, and without opportunity cost from missing out on delegation was achieved with a bit of mathematics. A smart contract holding tez, which lets its owner mint new ctez. The number of tez in the contract must exceed the number of ctez minted times the target peg, times 16/15. The last factor represents a safety buffer of 6.667%. The total number of ctez minted by an oven is called the outstanding amount of ctez. If ctez is returned to the oven (burned), the outstanding amount decreases (as does the total supply of ctez). For all this you need a Tezos Defi wallet like Temple Wallet. I will provide a like to if you have not setup Temple Wallet. I have 106 TEZ tokens. I am going to mint half of my TEZ into CTEZ using the Oven. For that I go to ctez.app/myovens. I click create oven. I pick my first delegate from the list. My intial deposit was only 5 TEZ tokens. I paid like 0.616 TEZ as storage fee an gas fees were 0.0012 TEZ. After the Oven, go to All Ovens. You will see your Oven address. I have created 4.34 CTEZ tokens. I need to click MINT to claim my newly minted CTEZ tokens. Click on Max. In my case I can claim 4.346496 CTEZ tokens. Gas fees for claiming MINT is 0.00087 TZ and 0.00075 TZ tokens. Tezos blockchain is very fast-confirms transactions in seconds as oppose to Ethereum and gas fees are pennies. Now open your Temple wallet. I did not selected CTEZ as default currency so I do not see my newly minted CTEZ tokens. I went under tokens, searched for CTEZ. And selected it. Now I see CTEZ token balance of 4.346596. I end up minting 52 more TEZ tokens into CTEZ tokens that I will be depositing into CTEZ-TEZ liquidity pool later in Plentdefi.com.
Finding Liquidity Pools in PlentDefi.com
Plentdefi.com is a Tezo based Defi Dex. If you want USDC and Tezos tokens, swap your Tezo tokens for CTEZ at 1 to 1. Using the Trade tab. It provides 74% APY. Most safest way is to hold stable coins like USDT.e-USDC.e at 31% APY, USDtz-USDC.e at 30% APY, DAI.e-USDC.e at 20% APY, kUSD-USDC.e at 22% APY, uUSD-USDC.e at 16% APY. If you want to hold more bitcoin, you can by Teso bitcoin tzBTC at 1 to 1 at BTC price and WBTC.e at 17% APY. There is Tezo Ethereum at ETHtz-WETH.e at 29% APY. Always remember when you are swapping bluechips like BTC to tzBTC or WETH to ETHtz, remember there is not much liquidity so you will get large slippage or conversion loss for swapping greater than 0.5 BTC due not having large liquidity pool. I have some Tezo tokens in my wallet I bought at $4. Currently my Tezos token is at $1.40. I want to invest in CTEZ-TEZ at 16% APY. I can swap out using the Trade tab to CTEZ is 1 to 1 from Tezos I own. However, I chose the minting route I showed you earlier to convert TEZ tokens into CTEZ tokens. I did not like the swap conversion ration of 1 TEZ into 0.93 CTEZ. So I chose the MINT process. I got 51.15 CTEZ for 54 TEZ I converted. It is your preference.
Providing Liquidity to CTEZ-TEZ Liquidity Pool
Next, I will show you how to provide Liquidity to CTEZ-TEZ Liquidity Pool. Go to Earn and click Farms tab. I am looking for CTEZ-TEZ PNLP dual rewards when baking starts liquidity pool. It is currently paying 16% APY or 15% APR. If you click on little calculator button, it says in ROI is as follows. In 1 Day ROI at 0.04% is 13.25 PLENTY tokens per $1000 invested. In 7 days, it is 92.76 PLENTY tokens. In 30 days it is 397.53 PLENTY tokens and is 1 year it is 4836.68. PLENTY token is $0.03 right now as of writing this article. Click on Plenty LP Stable LP. This will open up Liquidity Pair add page. I picked 21.49 TEZ and 51.15 CTEZ tokens for this liquidity pair addition. It is kind of strange that tokens pairs are not 50-50% is PlentyDefi. I was expecting 50-50% token split tokens that are in same or near same value in dollar terms. I hope Plenty DEX will add the functionality to click max amount of either token calculated automatically not just the first token TEZ in this example. Now click add liquidity. Gas fees in Tezos as usual is 0.002 and storage fee is 0.01725 TEZ tokens. This will create liquidity tokens in Plenty DEX. You are not done depositing. You need to deposit this CTEZ-TEZ LP tokens into the farm next.
Depositing CTEZ-TEZ LP tokens into the farm
Finally, I will show you how to deposit CTEZ-TEZ LP tokens into the Plenty LP farm. Without depositing LP tokens into the farm, you will not the get the advertised APY. Click on Earn tab on the top. Click Farm. Go to TEZ-CTEZ liquidity pool on the bottom. Click on Stake. Staking window will detect automatically I have 97.15 CTEZ-TEZ PNLP tokens. I click Max. Click confirm Stake. As usual I pay only 0.0038 TEZ in gas fees and 0.06925 TEZ in storage fees. Click confirm. In seconds it records in the blockchain. Refresh the page after the it is confirmed in the blockchain. Go to My farms. I see my 97.15 LP tokens. After few day, you can see your harvestable PLENT tokens balance. You can withdraw and sell or swap those PLENT tokens for stables such as USDC.e or bluechips like WETH.e or WBTC.e.
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