Dear Llamas,
This is your Shepherd. In light of the recent events involving GooseDefi (TL;DR: layered farming was basically a flop, people lost money with layered tokens, their main token price is free falling, along with the TVL (Total Value Locked — all funds locked in the project at the moment), I wanted to write an open letter to all of you and to all the people involved with yield farming on BSC.
It has been a tough times for us since launch. We witnessed the initial enthusiasm and the intense, but fleeting surge in the TVL which then gradually deflated, bringing with it a progressive depreciation of LAMA. And this despite our best efforts to be totally honest, fair and transparent since the very start.
Token depreciation and decreasing TVL are a common issue lately in virtually all yield farms. But this shouldn’t have come as a surprise.
New farms have been springing up like mushrooms, every single day, with the only clear intent to make some quick bucks at the expense of unwary investors. And this also happened with projects that, on paper, had all the requirements in the right place: no migrator function (no developers access to people’s tokens, no backdoors), timelock (time between community’s alert of any developers’ transactions and proceeding them), dev-supplied LP tokens burned or locked, maybe even an audit! (and don’t get me started with audits and the false sense of security they create in non-tech-savvy people).
Unfortunately, a widespread but wrong belief has taken root that having all the things above, then the risk of losing investments and dramatic fall of token value is eliminated. When the truth is it’s not, at all.
The awful truth is that, without an actual use case, a farmable, inflationary token is destined to become worthless. It may not always be a scam, but the fall is inevitable. It’s imperative that people realize this.
Is Layered Farming really a solution?
One of the leaders in the yield farming on BSC is undoubtedly Goose Defi. You probably heard of them (we started as a fork from their code base). They certainly have the credit for bringing attention to all the security issues that reside in Pancake’s original smart contract code. This certainly granted them great visibility and respectability, especially with the BSC scene so polluted with rug pulls and scams. Their most glorified invention in yield farming is layered farming which was the attempt on reducing or even solving the inflation problem.
But today, I think people woke up abruptly from their golden dreams and realized that the emperor has no clothes.
Their much (self?) acclaimed layered farming didn’t have the expected result at all (except for them, I suspect) and the free falling TVL is proof of that. Their layered farming caused the eggs (tokens) to be burnt, therefore pushing the price of eggs higher.
But let’s face it: you can stratify the problem by adding more and more layers, but the problem will always remain. Does your token have any intrinsic value?
Layered farming should be called for what it actually is: a PYRAMID scheme or, to say it better, a Ponzi scheme.
It’s high time people call a spade a spade and realize there is no intrinsic value in “pure” yield farms. There is no such thing as printing money out of thin air.
Now that people are starting to realize it, it’s time to move forward to a new vision of a healthy and sustainable ecosystem.
Introducing SPIT — Llama utility token
Today we are announcing the upcoming release of SPIT, LlamaSwap utility token.
Each token in the LlamaSwap ecosystem will have its own specific use cases.
SPIT will have a finite max supply capped at 10 Millions, with no initial supply (with the exception of a small amount to provide the initial LP liquidity). It basically means that SPIT would be immune to inflation, and being bound to LAMA, SPIT brings stability to the whole ecosystem.
In order to get SPIT, you will need to:
- farm it in the SPIT farms and pools
- buy it (there will be SPIT-BUSD and SPIT-BNB and a SPIT-LAMA pair too)
- bet on prediction market and gamble
SPIT is a utility token by design, and the lifeblood of the prediction market and gamble games ecosystem we’re working on.
SPIT use cases are:
- Prediction market: Binary Options (this is HOT! We’ll reveal more info soon)
- Gambles:
- - The Spitting Wheel
- - Dices
- - The Lottery
LAMA will remain the heart of the yield farm and will allow you to obtain SPIT (until the maximum supply is reached). Furthermore, it will be the main trading currency for the NFT ecosystem that we are developing. We will disclose more details about the NFT game in the coming weeks (one small preview: I’m sure you’ll have a lot of fun customizing your Llamatar! OK stop it, I cannot say more.)
What’s next — The Roadmap
We strongly believe NFTs and Prediction Markets are the two trending topics for the upcoming months.
- Prediction market + farming combined (ETA: 2-3 weeks)
We are working hard on releasing our Binary Options (a streamlined version of a full fledged prediction market solution), along with the SPIT farm.
No other yield farm on BSC that we know of has ever tried to combine these two features in a single place. - Gamble games will come right after (ETA: 4 weeks)
- a LLama-based NFT game ecosystem (ETA: tba)
This is huge and needs time. We’ll start with user-customizable collectible avatars and we’ll build upon this a whole NFT game ecosystem.
We had a lukewarm reception and we somewhat expected it. As it stands, it looks like we’re just the umpteenth fork, but we’re introducing features that will set us apart from the crowd.
Stay with us and spread the word.
Join our cool Llamas community:
Telegram: https://t.me/llamaswap
Twitter: https://twitter.com/Llama_Swap
LlamaSwap: http://llamaswap.finance
