We speak with Nodar Janashia who is the CEO and founder of Zapper which simplifies Yield Farming.
So we discuss yield farming in DeFi with Nodar.
Ever since Compund Finance launched their governance token COMP
“If you don’t understand where the yield is coming from in DeFi Yield Farming, it’s coming from YOU”
Nodar’s perspective is that different platforms offer different equations, borrowers pay yield and lenders get yield.
In compound, the borrower pays yield… in Maker, you collateralize in order to get a loan, and you do pay interest. If you collateralize ETH and take out Dai the interest is zero, so you can be incentivized to convert. But to unlock you need to pay back with interest. In uniswap a liquidity provider gains fees from swappers. If you get liquidated you can pay 13% or more in fees. The liquidity provider or market maker gets some of the fees. Now you can combine these pieces to form Zaps in Zapper.
What makes Zapper special initially was providing assets to Uniswap as a market maker–you need equal worth assets–two piles. So if you come with just ETH you need to split it into two different piles. This creates user friction, so initially Zapper just made this into a single action. So these kinds of transactions can be made much easier.
Synthetix created the most popular uniswap V1 pool with their SNX token. Now there are a ton of them with Balancer and Curve as well.
Ultimately we want to give the power to the people to make their own combinations of transactions in DeFi. A DeFi “sandwich” maker, or Zapper being a money lego set.
Resources
https://ethhub.io/
https://bankless.substack.com/
Disclaimer
Information is provided for general educational purposes only. This presentation is not an offer to sell securities or a solicitation of offers to buy securities. Nothing contained herein constitutes investment or other advice nor is it to be relied on in making an investment decision. For more important information, please see disclaimer
