Tranquil Finance: Automated Market Maker

Recently, I have been taking a deep dive into the Harmony ONE ecosystem. While ONE is still cheap (roughly $0.20 at time of writing), it inevitably will see a massive spike in price once usage increases. One of the ways that Coins, like Harmony, attract liquidity is by providing liquidity farming incentives. This falls neatly into the Yield Farmer’s targets.

Essentially, the project pays you for utilizing their app as well as providing liquidity. Tranquil Finance is an algorithmic money market protocol, just like Aave. Basically, Tranquil creates a liquidity pool system, whereby each specific crypto is pooled together and the interest rate is determined with math equations on each specific asset. This enables them to provide efficient lending & borrowing and ensure there is enough liquidity to facilitate the lending & borrowing.

As one can see from above, these are the current assets available for depositing on the protocol. The APY% are rather generous and far beyond anything you could possibly get at a traditional finance institution. You are also able to collateralize your assets, thereby allowing you to deposit your assets, earn interest on them & use them as collateral to borrow other assets. 

Of course, there is also the borrow side. Here you are able to use your collateralised deposit to borrow the following cryptos. As you can see the % are really high on this platform but there is still liquidity. 

Tranquil Finance also has its own native token, TRANQ (Currently $0.15), this token is what will be paid out to you for utilizing their project. However, instead of dumping your rewards, they have a neat feature where you are able to stake your TRANQ and lock it up for 6 months. It should be noted that you are able to unstake your TRANQ early but it will come with a heavy handed 50% penalty to your holdings, which will be burnt.  Currently, you are able to earn 120.71% APR which is a fairly decent return and you will also have your rewards paid out in:

  • ONE (Harmony One)
  • WBTC (Wrapped Bitcoin)
  • WETH (Wrapped Etherum)
  • USDC (Us dollar coin)
  • UDST (Tether)

I feel like this slightly dilutes the value of your rewards but allows you to have some exposure to some other great assets. I would appreciate it more if I was able to choose which specific coin to earn in but perhaps we will find a project that allows for this soon!

Recently, they have introduced stONE which essentially is a token that makes use of liquid staking. Liquid staking is a fairly new concept which  lets users use their staked assets, when you stake your crypto more often than not, you are unable to use those tokens but now with liquid staking you can still use your staked coins in Defi via lending & borrowing, etc.

The stONE can be deposited as collateral on Tranquil finance and borrowed against, you also are able to provide liquidity in a stONE-ONE liquidity pair, which entitles you to fees as well as various incentive rewards.

Currently, you are able to stake your ONE here and currently the conversion rate is 1.00 stONE = 1.0025 ONE. It should be noted that it takes roughly 7 days to unstake your stONE and get your ONE back. Alternatively, you could just swap your stONE on a dex for ONE straight away. 

In essence, Tranquil finance is the bank of Harmony right now and facilitates the lending and borrowing of our assets. We will have to see where this project goes and I am following it closely. Click here to interact with the project. Kindly note that you will need MetaMask installed to access the site.

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