Source : coinquora.com
- The Tempus protocol is launching a new deployment on Fantom.
- Tempus users on Fantom can now lock in over 10% APY yield on their stablecoins.
- Tempus’ yield and capital token system enable users to lock in current market rates.
A multi-chain fixed income protocol integrating with some of the leading yield aggregation platforms is launching a new deployment on Fantom. Named Tempus protocol, its first integration with Yearn Finance is now live.
The general cryptocurrency space has been diving in deep reds and the easily accessible 20%+ APY opportunities have depleted. Due to this, the demand for leverage and borrowing has spiked as stablecoin yield is the ‘secondary product’ of bull markets. Even more, lending protocols like Compound are giving yields that are comparable to that of a regular bank or ETF.
Despite the current bear position of the market, Tempus users on Fantom will be shielded from this crypto-economic downturn. This implies, they will be able to lock in over 10% APY yield on their stablecoins. Not only that, users will be able to get high fixed yields backed by USDC, DAI, USDT, WETH, and YFI Vaults on Yearn Finance.
Remarkably, with Fantom’s low fees, less-capitalized farmers will not necessarily have to wait for months to break even on gas fees. In addition, users will be able to lock in current rates and not worry about them dropping over time thanks to Tempus’ yield and capital token system.
David Garai, co-founder of Tempus also remarks on what the declining market means for Tempus.
It’s an exciting time for Tempus. As a result of the market crash, borrowing appetite, and yields, in general, have dropped significantly. However, the Fantom ecosystem is as buoyant as ever which allows Tempus to set up pools that offer up to 10% fixed rate APY on stablecoins.
Currently, there are few farms with high yields in the market today including Terra’s Anchor protocol with approximately 19% APY on UST. Interestingly, the Tempus pools are among the most lucrative on a nominal basis with their 10%+ APY.
A deeper look at its risk-adjusted mechanism makes Tempus pools even the most viable choice. Besides, UST often suffered from de-pegs during heavy selling periods, such as inMay 2021 and recently in late January.
It is worth mentioning that Tempus’ sources yield from a diversified set of protocols that themselves use diversified yield opportunities. Particularly on Fantom, momentum remains strong for DeFi which allows for higher yields in comparison to blockchains like Ethereum.