As I have said many times before, I love Harmony (ONE), it's incredibly fast and cheap and seems to solve a lot of the issues with other ecosystems. I'm currently earning 11 - 12% staking my ONE and also using ONE to mint NFTs on Da Vinci (My NFT Gallery), and have been keen to try out other things within the ecosystem.
I have used DeFi & farming only briefly prior to this, so it was still early days for my experiences, I have also written about Viperswap on Harmony and BiSwap on Binance Smart Chain, it all looked confusing and overwhelming before I started, but actually ended up being relatively straightforward once I'd worked a few details out. So here is another guide to help you do the same should you want to, this time about Lootswap. Lootswap is essentially a fork of Viperswap, so its a clone with a few tweaks and changes.
Why should you want to? 35000% + returns currently on the LOOT/ONE liquidity pool are the main reason currently (these will gradually decrease with time and on a weekly emissions schedule that is due to drop significantly each week to reward early adopters), there are also various other LOOT liquidity pairs which have varying interest and risk rates. Currently 95% of your returns are locked until Dec 25th 2021, when they will start to be released gradually over the following 12 months. 5% returns are available immediately and can be harvested whenever you like. There is also Autoloot where you can stake Loot alone, so you can compound these returns and earn aLOOT. The locked tokens helps secure the value as it stops dumping of tokens by whales earning large amounts early in the life of the token, there are also significant withdrawal fees within a short space of time to discourage flash loans, those withdrawal fees become much smaller after a few days. The long term plan is to introduce gaming features, Guilds and various other aspects with which LOOT will be used. If this takes off then expect the value of LOOT to increase significantly, more details on their Loot Swap Medium page.
What are the risks? All returns are paid in LOOT, so you are investing in this token, although you can swap your 5% returns back to ONE immediately if you prefer, and there is the risk of impermanent loss with any liquidity pools. Essentially this is loss of potential gains, should a token in your liquidity pair change in value in relation to the other, this can be visualised using this Impermanent Loss Calculator. IL can be minimised by using more stable priced pairings rather than a LOOT based paring but the APRs whilst impressive are significantly lower for the time being.
The price of LOOT has been very volatile in part due to a few errors on the part of the devs, so my IL is pretty high at this stage (although its only realised if you withdraw) as LOOT has dropped significantly in price in the last week since I initially invested. However with the insane APRs I will likely still be up when we come to the tokens unlocking, assuming the project still exists and LOOT has any value at all. The errors were withdrawing a large number of LOOT in order to pay a full time dev for 2 years without really preparing the community/market for the decision, which made people concerned it was a rug pull and many withdrew their liquidity. There is also a change in the code from VIPER that allows for unlimited additional tokens to be minted by the devs, which has the potential to completely devalue LOOT entirely. It would appear from the conversations they have had with the community that this was an oversight rather than malicious, and they are looking at ways to address this. What all of this means is that this is a higher risk project to invest in than VIPER for example but the rewards are much higher currently, and especially with the low price of LOOT currently, although it has rallied a little, and the price is likely to increase further as emissions drop and potentially with the additional Guilds and gaming functionality on the horizon.
How do I start? First you need to have the Metamask wallet, and configure it for Harmony Mainnet. This is straightforward, you'll need to add Harmony Mainnet onto the available networks and ensure it is connected to this network before you then connect to Lootswap You can do this from the menu, settings, advanced, custom RPC then using the following details:
- Network Name: Harmony Mainnet
- New RPC URL: https://api.harmony.one
- ChainID: 1666600000
- Symbol: ONE
- Block Explorer URL: https://explorer.harmony.one/#/
This sets up Shard 0 which you will need to use for this, you can find details for shards 1 - 3 elsewhere if you also want to use this for other reasons.
After you've done this you can add LOOT & aLOOT as a custom HRC-20 tokens using the following contract addresses:
LOOT: 0xbDa99C8695986B45a0dD3979cC6f3974D9753D30
aLOOT: 0xA15C7828Ab22D182383A84F828Cd71Ac09Bb55E8
Once you've done this, transfer ONE from your account to your Metamask address if not there already, and connect your wallet to the Lootswap website, use the swap facility to get LOOT tokens, you'll need 50/50 LOOT/ONE (or whichever pairing you choose) to exchange for LOOT/ONE liquidity tokens, then you need to assign them to a staking pool. The website is very simple and easy to use.
The Telegram & or Discord group are helpful if you have any problems, questions or issues.
Finally, is it worth the risk? Only you can decide that, for me its worth a punt, no more than I can afford to lose - I consider the money gone when I invested and anything I get out is a bonus - its part of the fun - could be many times what I put in or zero but I think the project has a lot of potential and especially for early investors with big APR gains.
Disclaimers & Copyright:
Any links in my posts are referral where possible so if you sign up and use the site via those links I get something, or we both get something out of it, if there is no referral link available it’s just a straight link to the site. I really appreciate anyone using referral links as it supports covering my time writing these articles. None of my opinions or recommendations are based on whether a referral link is available and I have received no other incentive to write any of these articles, they are a true representative of my own experiences, good and bad.
This is not financial advice and I am not a financial advisor. Do your own research before making any investments.
