Liquidity pools have been at the heart of the decentralized finance (DeFi) space. When you have
one that outperforms others, it shows promise of the underlying DeFi projects and infrastructure.
The multi-functional automated market maker Emiswap caught our eye.
They recently reached an annual percentage rate (APR) of over 400%.
EmiSwap recently launched their High APR liquidity farming and staking.
It might actually turn out to be one of the highlights of the year as far as DeFi is concerned.
We reached out to Grigory Rybalchenko for more information about this and more.
Here is what he had to say.
- Congratulations on your successful launch! What’s next for EmiSwap?
Grigory Rybalchenko, founder and CEO at EmiSwap: Thanks! Of course, we continue the development of new features to make EmiSwap a trusted, multichain, and high APR DEX that helps people extract high returns in DeFi. Right now, we’re working hard on the support of new blockchains with Kucoin and Polygon coming in just a few weeks. Additionally, we’re working on the unique feature of NFT yield boosters scheduled for September. And last but not least, we pay much attention to partnering with new companies and projects. Let me give you a teaser: EmiSwap will be on Bitmart and MyContainer this month!
- Several organizations have claimed that they offer automated market-making (AMM) services. What makes EmiSwap stand out?
Rybalchenko: First and foremost, if we speak about the technology we use Oracle to make user’s trading experience better and protect them against front-running for example. Secondly, EmiSwap compensates for 100% of the Ethereum gas fees spent on adding liquidity or making swaps.
Furthermore, the idea of the product is that ESW holders not only enjoy some bonuses like better APR farming and staking pools but actually own the project as 0.05% from any operation on EmiSwap is proportionally distributed among all ESW holders. And last but not least — EmiSwap offers unique yield-boosting NFT items that can be farmed on the platform. When the user gets an NFT, he can enjoy some of the yield-boosting scenarios including increased income from liquidity mining, better rewards for swapping or holding ESW, and so on.
- Please, can you tell us more about your liquidity pool?
Rybalchenko: I guess you speak about staking and farming, right? If so, we offer pools for farming and staking of two types: Fixed APR and Variable. Each pool is created with pre-determined target liquidity and APR to keep the EmiSwap offering competitive to other DEXs.
- What is the mechanism of operation behind your annual percentage rate (APR)?
Rybalchenko: APR is calculated based on rewards for bocks. As I have mentioned above, we create each pool with some target liquidity amount, thus for variable pools APR in the early days is high and the more liquidity there is in the pool, the lower APR becomes because block rewards are allocated to more participants.
- What controls do you have in place to guard against excess liquidity and inflationary tendencies based on your high APR?
Rybalchenko: First of all, all our pools have a very well-thought economy. Extremely high APR is the prerogative of variable pools in the very first hours of their creation. Normally, people see high APR and jump in this pool thus decreasing the APR in practice. Each pool has some minimum APR threshold for a certain liquidity volume, and when this threshold is reached a new pool launches with more target liquidity.
- What is the difference between fixed and variable pools? How do they work?
Rybalchenko: Fixed pools have fixed APR and farming periods. That means a person can deposit say 1000 ESW for 1 month to a fixed staking pool. He is guaranteed to receive fixed APR all time as he stakes, and when 30 days are over, his funds, as well as the reward, are de-staked automatically. Variable pools are more flexible both in terms of APR and farming period. Users can withdraw their funds and reward at any time and the APR changes depending on the liquidity amount in the pool.
- Please, can you tell us more about how APR is calculated?
Rybalchenko: APR is the annual percentage rate, so the interest users will get annually. For fixed pools it’s always the same, whereas variable pool’s APR changes depending on the liquidity amount.
- Please, can you tell us more about the EmiDAO ecosystem? What is it, and how is it meant to work?
Rybalchenko: Being an ecosystem of meaningful interaction, EmiDAO unites different blockchain projects that have ESW as a governance token at their heart. EmiSwap is its first project, though we plan to expand the ecosystem with gaming, NFT, and other projects both built by the current and external team of developers. The returns of all projects in the ecosystem are allocated to the EmiVault smart contract which distributed shares to all ESW token holders.
- Do you have any plans for launching your independent distributed ledger? Please, can you tell us the reasons for your answer?
- How does EmiSwap offer compensation for the high Ethereum fees?
Rybalchenko: We compensate gas for swaps and adding liquidity with ESW tokens. Thus, any person who has ever used EmiSwap to make some operation becomes the holder of ESW and thus is entitled to get rewards for holding this token. As we plan to add new blockchains in the near future, this feature will possibly be deactivated, but while users have to pay for high ETH prices to make operations on EmiSwap, we want to compensate them for their loyalty and trust.
What plans does EmiSwap have for the launch of ETH 2.0?
Rybalchenko: Well, it has no impact on our current or future plans, so nothing special here.
- Still speaking about Ethereum, what are the various problems within the Ethereum ecosystem that EmiSwap solves?
Rybalchenko: We compensate for Ethereum gas fees instantly in our tokens which is a rare case in the Ethereum based DEX industry. Gas fees are very expensive nowadays and we strive at ensuring a better user experience by compensating for gas expenses for swapping and adding liquidity.
- Do you have any plans to launch the EmiSwap ecosystem on other blockchains? Please, can you tell us the reasons for your answer?
Rybalchenko: Indeed, we plan to support all major and emerging blockchains. Ethereum is extremely costly and can hardly boast high throughput, thus we will start supporting Polygon and Kucoin this month.
- Please, can you tell us more about community-governed decentralized exchanges (DEXes)?
Rybalchenko: The idea behind community governance is that being a DAO we want all people to be able to influence the fate of the ecosystem. ESW is also a voting token, and users will be able not only to get yield from holding it but also vote on new developments and projects.
- Please, can you tell us more about your NFT activities?
Rybalchenko: EmiSwap offers NFT Magic Cards that help users boost their yield from using the DEX. It’s very simple: you add liquidity to farm a Magic Card of a certain tier, and the higher-tier card you farm, the better bonus you will receive for swapping, adding liquidity, or holding ESW. We plan to release this functionality in September with development already going at high speed.
- Do you have any plans to launch an NFT marketplace? Please, can you tell us the reasons for your answer?
Rybalchenko: We are evaluating this opportunity. On the one hand, NFT is still trending, but competitors are many and we need to perfectly understand what game-changing features we’ll be able to offer before entering this sphere.
- What are your thoughts on the recent attempts by world governments to regulate cryptocurrencies and their underlying technologies?
Rybalchenko: Blockchain itself actually needs no regulation and management due to its nature that eliminates the necessity in the middlemen. It’s pretty obvious that governments want to control crypto, but I would rather suggest an approach of cooperating, not competing.
- What are your thoughts on the increase in smart-contract-enabled blockchains and distributed ledgers?
Rybalchenko: We are good at promoting crypto and blockchain technology and thus welcome projects that are developing in this industry.
- Do you have any secrets you want to tell us? Care to spill the beans?
Rybalchenko: I can actually share some of our August plans e.g. Bitmart listing in mid-August and then launch of ESW staking on MyContainer and MantraDAO. Additionally, we are working on a program of onboarding new projects in the EmiDAO ecosystem
- If you had three wishes and a Genie that could make them come true, what would they be for the DeFi and cryptocurrency space?
Rybalchenko: Nice question. Truly decentralized governance is one thing. The second is that I would love to have crypto accepted by governments so that more people has access to wealth. And third is cooperation in the industry, not competing against each other. This paves the way for a trusted and efficient ecosystem of blockchain projects.