The massive growth cryptocurrencies have seen in the past few years has made it more difficult every day to find projects that appear ot be of quality or to even keep up to date with the news and events that are shaping the industry at large. Recently the automated crypto lending platform Yamp Finance announced the launch of the $YAMP token, one that looks to fall into that “appears to be of quality” category.
Yamp Finance is the first platform to use LP tokens as collateral for automated loans on four different blockchains. Additionally, the token will reduce the risk of impermanent loss caused by volatility and allow anyone to list a new pair of token loans on Serum, UniSwap, PancakeSwap, and QuickSwap.
Yamp Finance has launched a successfully certified IDO selected by the Starter team. The certification process included a strict KYC process. The project will provide a platform where users can seamlessly switch between blockchains to take advantage of LP tokens in all of them in one place. Yamp comes to solve problems like inefficient token economy and impermanent loss.
By using Yamp, the lender receives a guaranteed interest rate, with the loan repayment algorithmically backed. The lender can then indirectly provide liquidity to AMMs and earn returns without the risk of temporary loss. In effect, the risk is transferred to the borrower. This will be great for AMMs as well, as there is now a better way for low-risk users to become providers of liquidity.
Most platforms make leveraged positions very risky by requiring borrowers to overcollateralize. There is always the risk that the loan value will exceed the collateral value with any secured DeFi loan. Yamp Finance eliminates the risk of default and allows a leverage of at least 10 times on the borrowed positions, thus reducing the risk to the borrower’s collateral. Liquidity providers can use a token as collateral through their LP tokens backed by that same token. $YAMP has the advantage of being a fixed supply government token, totaling 70 million tokens. Users can collect four fifths of the interest generated on the loan platform, which will allow them to enjoy a passive income.
Also, Yamp Integrates Yield Leverage Solution to Polygon’s QuickSwap, offering Quickswap liquidity providers the ability to borrow funds to take advantage of their returns. Whenever there is an increase in returns, liquidity providers can easily multiply their agricultural positions many times over to take advantage of the higher returns.
QuickSwap provides a quick and easy solution for Ethereum high network fees. This makes it much easier for Yamp users to enter and exit agricultural positions as yields change. It also makes it easy to borrow, lend, and anyone can add any new pair they want to the system. On the other hand, QuickSwap offers some of the highest incentives for liquidity providers in the AMM industry. Yamp’s LP token leverage will now allow multiplying the already high returns of LP QuickSwap tokens.
Among the important updates of Yamp Finance has also included the launch of the Yamp application in POLY. You can access the application through poly.yamp.finance. In addition to this, YAMP farming is now available, the team is allocating 35,000,000 YAMP to farming incentives for YAMP users in both Polygon and BSC. This portion will be distributed linearly over the next 4 years. You can start farming YAMP by going to our app and opening a leveraged LP position in one of the pairs: USDC / USDT, USDC / YAMP, WMATIC / USDC, and WMATIC / YAMP.
The YAMP team continues to work on other updates that include connecting the token with BSC and in the future expanding to ETH and Solana. Without a doubt, a project that maintains an ambitious challenge and that promises users products with which to establish a good investment. However, it is always vitally important to do your own research.