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Empowering Access: Krystal Wallet Introduces Custom EVM Compatibility on Mobile App
Krystal Wallet users can now add custom EVM networks on our mobile app, providing you with greater freedom to connect and interact with a wider range of chains. You will be able to track, receive and store any EVM tokens, and seamlessly connect and interact with various EVM DApps via DApp browser in your Krystal Wallet.
Download the latest version of Krystal Wallet to take advantage of this new feature!
Krystal Wallet now supports more networks than ever
With this development, Krystal users gain enhanced flexibility and accessibility within the blockchain ecosystem. This feature empowers you to effectively manage a diverse digital asset portfolio across various chains from a single wallet. Additionally, Krystal Wallet’s capacity to store and track tokens across any EVM network enables effortless interaction with EVM DApps, expanding your opportunities to explore and engage with the ever-growing number of blockchain-based services and utilities. This advancement broadens asset management within a single wallet and enables seamless interaction with various EVM DApps.
How to add a custom EVM network?
We’ve made it simple for you to add custom EVM networks in your Krystal Wallet.
Step 1: Open Krystal mobile app and navigate to the Browser page.
Step 2: Search for Chainlist, or locate it in the DApp directory.
You can star to bookmark it for easy access in the future.
Search for Chainlist Step 3: Enter the network name you intend to add and click Add to Metamask.
Step 4: Select Confirm to add the network.
Step 5: Return to Wallet and the newly added network will be visible.
You can also click on the network name to toggle between networks. Opt for All networks for a comprehensive overview of your assets all chains (default and added).
Get the most updated version of Krystal Wallet in the App Store or Google Play Store to start connecting and interacting with new chains today!
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Liquidity Lens: Your ALL-IN-ONE Dashboard For Uni V3 Liquidity Pools
The world of liquidity and liquidity pools in DeFi is as interesting as it can get. There are a lot of rewards and incentives involved for all players. But unfortunately, there’s a massive roadblock keeping many from diving in: the dreaded MATH! 💤
Complex calculations can be a total buzzkill, discouraging people from exploring this exciting space. But fret not, because we’ve got your back!
Say farewell to mind-numbing spreadsheets and hello to a game-changing solution – Liquidity Lens! 🚀
This super tool is the ultimate LP profit tracker for passive investors seeking simplicity, accuracy, and a whole lot of FUN in the DeFi universe!
No more snooze-worthy calculations, no more confusion. With Liquidity Lens, you’ll be navigating liquidity pools like a pro without breaking a sweat!
In this blog, we have covered everything you need to know to jump into the world of Liquidity Lens with absolute ease 💪
Key Takeaways
- Liquidity pools are smart contracts that facilitate seamless trading on DEXs. Liquidity providers contribute assets to these pools and earn trading fees as rewards.
- Liquidity pools are essential for efficient DeFi trading, but accurately tracking LP positions is crucial for maximizing profits and reducing risks.
- Liquidity Lens – A Game-Changer: Krystal Wallet’s Liquidity Lens is a revolutionary tool designed for passive investors in DeFi. It offers a simple, fast, and accurate way to track LP profit, setting it apart from other platforms.
- Liquidity Lens stands out with its user-friendly dashboard, providing real-time and accurate data. Its simplicity and efficiency save valuable time for investors.
- Liquidity Lens enables users to effortlessly monitor impermanent loss, APR, fees earned, and more on a single dashboard across various supported chains.
- Liquidity Lens empowers DeFi investors to make informed decisions, optimize LP profits, and navigate the dynamic world of decentralized finance with confidence.
What are Liquidity Pools, anyway?
In the realm of decentralized finance (DeFi), liquidity pools play a pivotal role in facilitating seamless trading experiences 💰
A liquidity pool is a smart contract that allows users, known as liquidity providers (LPs), to deposit two different tokens into the pool. These tokens are then used to enable trustless trades on decentralized exchanges (DEXs) 🔥
The LPs are incentivized with trading fees, which are paid by traders executing transactions against the pool. These fees serve as a reward for providing liquidity and contributing to the efficiency of the DeFi ecosystem.
An essential component of liquidity pools is the Automated Market Maker (AMM) algorithm, which adjusts token prices according to supply and demand dynamics, ensuring continuous liquidity 🚀
While liquidity pools offer attractive benefits, LPs must be aware of impermanent loss, a temporary discrepancy in token prices that can impact overall profitability 📈
Nevertheless, with a well-calculated approach, liquidity providers can make a meaningful impact in the DeFi landscape.
We have written an entire blog explaining this concept in a super easy way! 😎
Why Do We Need Liquidity Pools?
Liquidity pools are the backbone of DeFi, ensuring smooth and efficient trading of various assets. They offer benefits such as:
- reduced slippage 💰
- increased market depth 📈
- enhanced security due to their decentralized nature 🔒
By becoming a liquidity provider, users not only support the DeFi ecosystem but also earn passive income through trading fees. However, tracking these positions accurately is essential to maximize profits and minimize risks.
This is where Liquidity Lens enters the story! 😎
What is Krystal’s Liquidity Lens? Why Should I Use It?
Krystal Wallet’s Liquidity Lens is a groundbreaking feature that addresses the challenges faced by liquidity providers 🔥
Unlike many popular wallets like MetaMask and TrustWallet, Krystal Wallet stands out by offering a comprehensive portfolio management tool tailored specifically for LP positions.
With Liquidity Lens, you gain unparalleled insights into your Uniswap v3 positions across all supported chains – all in one single dashboard! 💪
The key advantages of Liquidity Lens are:
📊 Simplicity at Its Finest:
Some platforms throw heaps of data at you, making it feel like deciphering ancient hieroglyphics. Not Liquidity Lens! It’s like having a cool, chill friend who gives you just the right info without overwhelming you 🤩
It allows users to effortlessly track:
- APR
- net P&L
- fees earned
- impermanent loss
- earning projections and more
⚡️ Super Speed Mode:
Time is money, right? Liquidity Lens gets it!
No more waiting around for data to load. It’s a flash of lightning – connect your wallet and bam! Your liquidity positions are right there, ready to be explored! ⚡️
🎯 Accurate Insights:
Gone are the days of squinting at spreadsheets and praying your calculations are right.
With Liquidity Lens, you get real-time, accurate data. Your LP profit tracking game just leveled up! 💯
🚀 A Trip Across Supported Chains:
Buckle up for a cross-chain adventure! Liquidity Lens supports multiple chains, so you can track all your Uniswap v3 positions in one place. The DeFi universe is your oyster! 🌌
Let the Fun Begin: Your Liquidity Lens Journey
Enough talk – let’s get you ready to ride the waves of DeFi fun with Liquidity Lens! 🏄♀️🌐
Connect Your Wallet
Visit https://wallet.krystal.app/liquidity-lens and securely connect your wallet. Safety first, always! 🔒
Connect your wallet on Krystal 🎢 Welcome Aboard
Once you’re in, welcome to the amusement park of LP insights! Your dashboard is vibrant, intuitive, and user-friendly. You won’t need a map to navigate this ride! 🗺️
The Liquidity Lens homepage 🌈 Insights, Data, and More: Feast your eyes on all the important insights on your LP position data
📉 Say Goodbye to Guesswork: Impermanent loss can be a sneaky monster. We have written all about it here. But with Liquidity Lens, you’ll be able to track it easily without breaking your head over the complex calculations behind it!
🏆 Maximize Your Profits: Armed with accurate insights, you’ll make informed decisions that boost your LP profits to the moon and beyond! 🚀
Plus, you can find more details about our Liquidity Lens here.
Conclusion
In conclusion, Krystal Wallet’s Liquidity Lens is a game-changer for liquidity providers in the DeFi space. This feature offers simplicity, accuracy, and speed – all on a single dashboard, making it the perfect tool for passive investors seeking to optimize their LP profit tracking 🚀
Whether you’re a DeFi enthusiast, a seasoned LP manager, or a newcomer to the world of liquidity pools, Liquidity Lens is your gateway to hassle-free portfolio management.
Are you ready to take your DeFi journey to the next level? Try out Liquidity Lens today and unlock unparalleled insights into your Uniswap v3 positions. 🔥
Stay tuned for more exciting updates from Krystal Wallet as we continue to innovate and empower the DeFi community!
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Crypto 101: How To Secure Your Crypto Wallet?
Wallet hacks have been running rampant lately, leaving innocent users crying over their lost millions. It’s like a virtual crime wave! 🔓
Many people, regardless of their crypto wealth status, have been affected in one way or another.
A few examples like the notorious “The Pink Drainer” has stolen close to $4 million across 2800 victims in the past 7 months. In June, Orbiter Finance was hacked for $750k through their Discord 😬
So, it’s high time we buckle up and get serious about securing our precious crypto wallets. We need to outsmart those pesky hackers. This blog explores some high-level, practical tips to keep your digital assets safe and sound.
Let’s get started! 🔥
Key Takeaways
- Wallet security is of utmost importance in the world of crypto. Protecting your digital assets from hackers and scams should be a top priority.
- Follow best practices such as using strong and unique passwords, keeping your wallets updated, diversifying your assets across multiple wallets, monitoring your wallet activity, and backing up your private keys.
- Consider using a secure wallet like Krystal Wallet, which offers features like secure storage, biometric authentication, backup and recovery options, token approvals, and protection against malicious sites.
- Remember, you are the first line of defense for your wallet’s security. By implementing these measures and choosing a trusted wallet, you can significantly reduce the risks associated with wallet breaches and scams.
- Start securing your wallet today and exploring the features of Krystal Wallet to enjoy a safe and worry-free crypto experience.
Crypto Wallets 101
Crypto wallets are like your digital piggy banks, but cooler and more high-tech. They’re where you keep your private and public keys, the magical codes that let you manage your cryptocurrencies and make transactions.
Now, let’s check out the three main types of wallets: Hot, Cold, and Paper. Each has its own unique features and quirks, just like different toppings on your favourite pizza 🍕
💻 Hot Wallets
These wallets live in the digital realm, like apps, websites, or even browser extensions. They’re like having a crypto wallet right in your pocket or on your computer screen. Krystal Wallet, Metamask, and Trust Wallet are great examples of this type of wallet.
Pros:
- Convenient and easily accessible on various devices.
- Many hot wallets are free to use.
- Supports a wide range of cryptocurrencies.
Cons:
- Vulnerable to online threats and hacking attempts.
- You might not have full control over your crypto assets if they are non-self-custodial.
🔒 Cold Wallets
These wallets are like mini computers designed specifically for safeguarding your precious crypto. They’re tangible and usually look like fancy USB drives. Ledger and Trezor are the rockstars of this category.
Pros:
- Top-notch security, like a digital fortress.
- Absolute control over your crypto assets.
- Supports a wide range of cryptocurrencies.
Cons:
- Can be a bit expensive.
📝 Paper Wallets
A physical piece of paper with your private and public keys printed on it. It’s a way to store and access your cryptocurrency offline. Printing the keys removes them from the online network, but the tokens remain.
Pros:
- Keeps your keys offline, providing an extra layer of security.
- Usually free to create.
- No reliance on digital devices or connectivity.
Cons:
- Setting up can be tricky, especially for beginners.
- Risk of losing the physical paper, resulting in permanent loss of crypto assets.
Common Security Risks
Let’s talk about the risks and threats that can put your crypto wallet in danger. Being aware of these dangers is crucial for keeping your digital assets safe. Here are the main categories to watch out for:
⚠️ Phishing Attacks
Crafty hackers use social engineering techniques to trick crypto owners into revealing their sensitive information. They create deceptive scenarios that appear harmless, catching victims off guard.
For example, Dominic Lacovone fell victim to an Apple Support impersonator who gained access to his iCloud account and drained $650k from his MetaMask wallet 😬
⚠️ Key Management System Hack
Wallet providers have a choice regarding how they store mnemonic keys. Some keep them in their servers for performance optimization and error management, while others opt for a more decentralized approach.
If a provider stores mnemonic keys, it’s crucial to ensure they are kept in a secure environment. Third-party auditors can help review the system for vulnerabilities 🔒
The Slope wallet hack in 2022 serves as a cautionary tale, where hackers exploited the storage of mnemonic keys in the wallet provider’s logs, resulting in the theft of over $4 million in user funds. It’s important to store your keys in a secure system that has been audited by reputable experts 🔍
Best Practices for Wallet Security
These practices show how you can make sure those sneaky hackers stay miles away from your precious digital treasures.
- Use Strong Passwords: It’s time to unleash the power of strong passwords! Pick a password that’s as unpredictable as a unicorn at a tea party. Avoid using your name or anything obvious. Go for a random mix of alphanumeric keys. Those hackers won’t stand a chance against your fortress of passwords! 🔒
- Embrace 2FA Authentication: Two-factor authentication is like having a bouncer at the door of your wallet party. It’s an extra layer of security that keeps unwanted guests out. Whether it’s an OTP from your email or biometric authentication, these hackers can’t easily get through your double-layered defense 📱
- Have Multiple Wallets: Don’t put all your digital eggs in one virtual basket. Spread assets across multiple wallets. It’s like diversifying your crypto portfolio but for security. If one wallet gets hacked, you won’t lose everything. Smart move, right? 🚀
- Be Careful with Public Wi-Fi: Ah, public Wi-Fi—the land of free internet and potential danger. While it’s tempting to connect anywhere and everywhere, be cautious. Public Wi-Fi owners might sneak a peek at your data. So, if you must use it, do it with a secure VPN. Stay one step ahead of those prying eyes! 🛜
- Be on Guard Against Phishing: Hackers love playing mind games, but we’re onto their tricks! Watch out for suspicious links and messages. They might try to fool you on Twitter, Discord, or even pose as customer support. Be discreet with your info and never give in to their deceptive charms ☢️
- Only Interact with Secure Websites: Safety first, always! When it comes to your crypto wallet, stick to secure websites. Look for that “HTTPS” instead of just “HTTP” in the address. Those sneaky hackers won’t fool you with their weak security tricks. ⚠️
- Keep Your Seed Phrase and Passwords in a Safe Place: Guard your seed phrase and passwords like precious treasure maps! No one should have access except you. Don’t save them online or in the cloud. Write them down on paper and stash them away in a safe spot. Your wallet will thank you for it! ⛔️
- Get a Cold Storage for Savings: Don’t be reckless with your life savings. If you feel your hot storage is not secure enough, then you can strengthen the security layer by using cold storage. It’s like having your own secret fortress where you have full control over your funds. No funny business, just you and your private stash ✅
Krystal Wallet Got You Covered!
Krystal Wallet ensures that your precious crypto treasures are safeguarded with some of our top-notch security features.
- ✅ Secure Storage: Krystal Wallet knows that your private keys are precious, so they keep them where they belong—right on your own device. No need to worry about those keys being stored on Krystal Wallet’s servers.
- ✅ Biometric Authentication: Along with traditional passwords, you can add a touch of biometric magic. Krystal Wallet offers biometric authentication, such as fingerprint recognition, to add an extra layer of security. It’s like having a secret handshake with your wallet, ensuring that only you can access your crypto kingdom.
- ✅ Backup and Recovery: We all know accidents happen, but fear not! Krystal Wallet has your back. We provide backup and recovery options using a mnemonic phrase. It’s like having a secret code that can bring your wallet back to life if anything goes wrong. Peace of mind in a world of digital uncertainties!
- ✅ Token Approvals: Krystal Wallet puts the power in your hands when it comes to token approvals. You can review and even revoke contracts right within the platform. Any malicious contracts that you might have signed accidentally can be revoked in an instant!
- ✅ dApp Warning and Blocking: Krystal Wallet keeps an eye out for you, even when you’re exploring dApps. It warns or blocks access to malicious sites, protecting you from potential threats. It’s like having your own security guard guiding you away from danger.
Conclusion
With so many risks and threats out there, it’s crucial to take the necessary steps to protect our digital assets. Remember these best practices:
- Use strong and unique passwords.
- Keep your wallets updated with the latest security patches.
- Diversify your wallets and spread your crypto across multiple platforms.
- Be a vigilant detective and monitor your wallet activity for any suspicious behaviour.
- Back up your private keys and store them in secure locations.
Wallet security is no joke. It’s time to take it seriously and safeguard your hard-earned crypto treasures 🔥
And if you’re looking for a wallet that prioritizes security, look no further than Krystal Wallet. With its secure storage, biometric authentication, backup options, token approvals, and protection against malicious sites, it’s a trustworthy companion for your crypto journey 🚀
👉 Check out Krystal Wallet here: Krystal Wallet
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Krystal Is Rolling Out A New URL For Our Web App!
We’re thrilled to announce that on our journey towards creating the simplest web3 wallet for everyone, we’re unveiling a new URL for Krystal that better embodies our identity!
Get ready to say hello to our new home at https://wallet.krystal.app!
We assure you that there will be no service disruptions during the transition! 🚫
From now until July 31, 2023, both https://wallet.krystal.app and https://defi.krystal.app will operate simultaneously for a seamless transition for all our users!
Starting August 01, 2023, we will be sunsetting https://defi.krystal.app. To ensure seamless access to Krystal, it is important to keep a few things in mind.
- Visit and bookmark the new site
To ensure that you are always visiting the correct site, we recommend you to visit and bookmark ✅ https://wallet.krystal.app!
Protect yourself from phony websites with this simple step! Check out the simple tutorial below to get started 🔒⤵️
How to bookmark Krystal’s new web app 2. Re-connect your wallets on the new site
Re-importing your wallets on https://wallet.krystal.app is a breeze and will ensure your seamless crypto experience on Krystal. Don’t worry, it won’t take up much of your time – we promise!
How to reconnect your wallets on Krystal’s new web app 3. Re-import your watchlists on the new site
If you’re following any crucial wallets in your watchlist, do remember to re-add these wallets to your watchlist on https://wallet.krystal.app. Keep an eye on them at all times and not miss out on the alpha insights from those wallets in your watchlist!
After July 31, 2023, you won’t be able to access your watchlist on https://defi.krystal.app anymore.
Re-import your watchlists on Krystal’s new web app Should you have any questions about this transition, feel free to reach out to our friendly admins on Telegram and we will be more than happy to assist!
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Halo! Krystal Wallet Launches Bahasa Indonesia Language Support
Bahasa Indonesia is the second language supported on Krystal web app.
Halo Indonesia!
We’re thrilled to announce that Krystal now supports Bahasa Indonesia, the national language for 280 million people in Indonesia!
As part of our ongoing commitment to build the simplest web3 wallet for everyone, we’re excited to be able to strengthen the web3 experience for our Indonesian users through such localisation efforts. This marks an important milestone for us as we support Bahasa Indonesia on Krystal web app. More languages will be added in future.
Our Indonesian community is one of our most long-standing and active user-base, and we understand the importance of providing the simplest possible experience for them. That’s why we now offer Bahasa Indonesian language support on our web app and in our Indonesia Telegram group, where our moderators and advocates are available to provide customer support.
To change the language on Krystal, simply select the “Language” icon at the bottom left of your screen and choose your preferred language.
How to switch languages on Krystal As we continue to grow, we’re always looking to improve our platform and provide the simplest possible experience for our users. Let us know on Twitter which languages you’d like to see supported next.
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LSDFi: The Hottest Trend in DeFi
LSDs or Liquid Staking Derivatives are the hottest innovation shaking up the decentralized finance (DeFi) scene 🔥
Currently, there is over 10 million ETH ($19.4 billion) staked on multiple platforms and earning yield on it 📈
But ever since the latest Ethereum Shapella upgrade, a groovy sub-sector has emerged called LSDFi (Liquid Staking Derivatives Finance).
So what is it? Is it worth the hype or will it die down soon enough? 🤔
Well, put on your bell-bottoms, grab your cool shades because we’re about to find out when we take a wild ride through the LSDFi landscape!
Key Takeaways
- LSDFi (Liquidity Staking and Derivatives in Decentralized Finance) is a game-changer in the world of DeFi, offering exciting potential for maximizing yield and driving financial innovation.
- It combines liquid staking with the wide range of products that DeFi already offers, providing investors with diverse investment options.
- The LSDFi ecosystem fosters innovation and experimentation, pushing the boundaries of what’s possible in decentralized finance and introducing new financial instruments and strategies.
- A plethora of projects like Lybra Finance, Pendle and Asymetrix Protocol have been leading the way with their innovations and offering more opportunities for users.
- While diving into LSDFi platforms can be a thrilling adventure filled with exciting opportunities, it’s crucial to keep an eye out for the challenges and risks that tag along.
LSDFi: Where Staking Gets Liquid and Drippin’
Picture this: you’ve got your assets staked, but suddenly you feel the urge to boogie in other parts of the DeFi dancefloor 🤔
For this, you’ll have to unstake and take the collateral elsewhere which means, you’ll lose out on that sweet sweet yield.
Enter LSDFi, the smooth-talking matchmaker that lets you have your stake and trade it too! LSDFi platforms allow you to collateralize your staked assets and receive liquid derivatives that you can freely:
- trade 🔄
- lend 🫳
- use as collateral elsewhere 💰
It’s like taking your staking rewards to the roller disco while still having them safely tucked away.
Benefits of LSDFi
LSDFi offers a range of exciting benefits for users. Let’s dive into the fun and fabulous advantages:
- ✅ Enhanced Yield Opportunities: LSDFi platforms provide users with innovative ways to maximize their yield. By using the staked assets on one platform, users can earn attractive returns on other platforms as well. It’s like adding extra sparkle to your financial journey!
- ✅ Flexibility and Accessibility: LSDFi breaks down barriers and opens up new possibilities. Gone are the days of patiently waiting for staked assets to unlock. You can actively use your staked assets to participate and earn in a vibrant ecosystem.
- ✅ Diverse Investment Options: LSDFi platforms offer a wide array of investment options and strategies. Whether you’re into staking, yield farming, liquidity provision, or derivatives trading, there’s something for every risk appetite and investment preference. It’s like having a buffet of investment opportunities right at your fingertips!
- ✅ DeFi Innovation and Experimentation: LSDFi is at the forefront of DeFi innovation. It pushes the boundaries of what’s possible, introducing new concepts and financial instruments. It’s like a playground for the creative and curious minds, where you can explore groundbreaking ideas and experiment with cutting-edge technologies.
- ✅ Community and Governance: LSDFi platforms often foster vibrant communities where like-minded individuals come together to discuss, learn, and collaborate. Through governance mechanisms, users have a say in the platform’s future and can actively participate in shaping its direction. It’s like being part of a close-knit family where your voice matters.
Noteworthy Projects in LSDFi
Within the LSDfi sector, several noteworthy projects have emerged, each offering unique functionalities to LSD holders and users alike.
🔴 Lybra Finance
It’s like a magical place where you can deposit your ETH or Lido Staked ETH (stETH) and borrow their stablecoin called eUSD. And guess what? They don’t charge any fees for minting eUSD or interest on the borrowed amount. How awesome is that? 🤯
But wait, it gets even better! By just holding eUSD, you can earn some sweet yield. It’s like free money raining down on you. And here’s the best part: you don’t have to worry about the volatility of ETH because the yield is automatically converted to eUSD. No more hassle of swapping stablecoins yourself. 💰
Now, if you’re feeling adventurous, you can also earn more by providing liquidity in eUSD pools or try out some ETH-levered long strategies. Fancy buying more ETH with your eUSD? You can totally do that too ✅
Their Total Value Locked (TVL) has skyrocketed like crazy, like 10 times in just the last month. And their LBR token? It went from its lowest point to an all-time high, gaining over 2000%!
That’s some serious growth right there 📈
🔴 Pendle Finance
A crazy cool DeFi protocol on Ethereum and Arbitrum. It lets you tokenize and trade yield, giving you ultimate control over your yields and unlocking advanced strategies 💰
We’re talking about things like longing yield (expecting it to rise), snatching up assets at a discount, and even getting fixed yield on your yield-bearing tokens. It’s like a playground for DeFi power users! 🔥
Pendle splits every yield-bearing token into two.
1️⃣ First, you’ve got the principal token (PT), which lets you redeem the underlying assets after a fixed maturity period.
2️⃣ Then there’s the yield token (YT), which allows you to receive the yield from staking or other yield-bearing activities for a specific period. You can claim those rewards whenever you want or sell the YT to someone else. It’s all about maximizing your control and flexibility.
With Pendle, you become the master of your own yield farming destiny. It’s a world of flexibility and control for yield farmers, traders, and long-term ETH bulls 📈
🔴 Asymetrix Protocol
It’s here to shake up the ETH staking game 🚀
You deposit your stETH into Asymetrix, and every week, the rewards from ETH staking get dished out to the users. But wait, there’s a twist! The distribution of rewards is all about luck!
Your odds of winning depend on how much you’ve deposited and how long you’ve kept it in the protocol. It’s like a crazy rollercoaster of randomness! 🎢
The best part? The rewards are determined by Chainlink’s Verifiable Random Function (VRF). It’s like Lady Luck herself is deciding who gets what 🔥
You could score big and get the whole pool’s rewards, or you might just get a tiny piece of the pie. It’s all up to chance!
But hey, don’t worry about losing your deposits. Asymetrix has your back. Even if luck isn’t on your side, you won’t lose your hard-earned stETH. Phew! 😅
And guess what? As a bonus, they’re dishing out their native token, ASX, to all the cool peeps who participate. So, even if you don’t win big, you’re still earning those sweet ASX tokens. It’s a win-win!
Now, keep in mind that there’s an opportunity cost here. Your stETH’s yield might be affected while you’re playing in the Asymetrix sandbox 😬
Overall, these projects collectively contribute to the development of a dynamic LSDfi ecosystem, providing users with enhanced opportunities and flexibility in managing their digital assets.
Challenges and Risks
While LSDFi platforms offer exciting opportunities, it’s important to be aware of the challenges and risks that come with using them. Here are a few things to keep in mind:
- ⛔️ Smart Contract Risks: LSDFi platforms rely on these fancy smart contracts, but hey, they’re not foolproof. There could be bugs or coding mishaps that might lead to financial losses or hacks. So, be sure to do your homework, check for audits, and be cautious when interacting with these contracts.
- 📈 Volatility and Market Risks: LSDFi loves to play with those wild and crazy assets and markets. Brace yourself for rollercoaster rides of price fluctuations. Just remember, what goes up can also go down, so be prepared for potential losses and keep an eye on those market movements.
- 👩⚖️ Regulatory Uncertainty: LSDFi is still finding its way in the regulatory world. Things might change, rules might be unclear, and compliance could get a little messy. Stay in the loop, stay informed, and be ready to adapt if the regulators start throwing curveballs.
- ⚖️ Information Asymmetry: Transparency, or lack thereof, can be a bit of a puzzle in LSDFi. Sometimes it feels like trying to find your way through a maze without a map. Info might not be as readily available, and things can get a bit asymmetrical. Do your research, seek out reliable sources, and be extra cautious when participating.
- ⚠️ User Error and Security Risks. It’s like walking a tightrope, my friend. One wrong step, and you might end up losing your funds. Double-check those addresses, watch out for phishing attacks, and lock up your crypto with good security practices. Safety first, folks!
Future of LSDFi
The future of LSDFi holds promising potential. With an increasing number of participants recognizing the advantages of liquidity provision alongside staking, LSDFi platforms are set to become highly sought-after destinations 📈
As reported by Binance Research, the TVL in top LSDFi protocols has more than doubled in a month, crossing the $400 million mark 🔥
Anticipate the emergence of novel LSDFi protocols that will further enrich the ecosystem, catering to the evolving needs of investors seeking to optimize their staking strategies while maintaining liquidity.
Currently, LSDFi represents around 2% of the total addressable market! Plenty of room for further expansion 🚀
The LSDFi landscape is poised for significant growth and innovation, promising an exciting journey ahead for stakeholders in the blockchain and DeFi space 💪
Conclusion
In conclusion, LSDFi’s potential to revolutionize DeFi is undeniable. It offers enhanced yield opportunities, sparks innovation, empowers individuals, and brings forth a new era of financial possibilities 🔥
As the LSDFi landscape continues to evolve, it’s an exciting time to be part of the decentralized finance revolution, where the rules are rewritten, and the potential is limitless.
Buckle up, embrace the LSDFi revolution, and get ready for a thrilling ride into the future of finance 🚀
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The Not-So-Scary Side Of Impermanent Loss
Just like fine wine and cheese, in the world of decentralized finance (DeFi), risks and rewards go hand in hand 🤌
One risk that liquidity providers must navigate is impermanent loss. In this blog, we will demystify impermanent loss, exploring what it really means, its impact on liquidity providers, and how to calculate it. We will also dive into strategies to mitigate impermanent loss and empower traders to make informed decisions in the dynamic DeFi landscape.
So, grab your popcorn and get ready for a thrilling DeFi adventure! 🍿
🤓 Key Takeaways:
- Impermanent loss is a loss that can occur when you provide liquidity to a liquidity pool 😅
- The amount of impermanent loss you experience will depend on the price change of the assets in the pool, the ratio of the assets in the pool, and the length of time you hold the assets in the pool 🔺
- There are a few things you can do to reduce the risk of impermanent loss such as staying patient or choosing less volatile assets 🧘♀️
- Impermanent loss is a temporary loss, and if the prices of the assets in the pool return to their original ratio, you will regain the value of your initial deposit 😎
🤔 What Even Is Impermanent Loss?
Picture impermanent loss as a mischievous rollercoaster gremlin that messes with your liquidity pool funds 🎢
When asset prices go on a wild ride, your overall portfolio value takes a dip compared to holding the assets separately. But don’t worry, it’s not a permanent loss! It’s more like a “temporary inconvenience” until the market regains its balance.
So, you just have to hold on tight and embrace the thrilling nature of impermanent loss! 🤞
Apart from your portfolio, this also occurs in liquidity pools, when the value of the assets in a liquidity pool changes relative to the value of the individual assets when they were deposited. This can happen if the price of one asset in the pool goes 🔺 or 🔻 more than the other asset.
😎 Let’s Take An Example And Calculate Impermanent Loss:
Calculating impermanent loss is like solving a fun puzzle with you as the detective. So, grab your magnifying glass (or calculator) and let’s get deducing!
Don’t let the math scare you! 😅
Imagine you are the sole investor in a newly established liquidity pool and you deposit the following assets 👇
- 💰 10 ETH with an initial value of $1,000 each
- 💰 $10,000 worth of a stablecoin equivalent, such as DAI (10,000 tokens)
👉 Suppose someone uses 500 DAI to purchase ETH from your pool. This transaction leads to a 5% increase in the supply of DAI.
As a consequence, the price of DAI decreases within the liquidity pool, while the price of ETH rises due to a reduction in its quantity.
This phenomenon is known as price impact, where each purchase elevates the price of the purchased token.
Subsequently, the AMM algorithm adjusts the prices of the tokens based on the updated quantities.
Liquidity pools often use a simple rule called the constant product formula. It multiplies the initial quantities of tokens in the pool, like 1,000 * 1,000 = 1 million. This 1 million value is then used to determine how prices change when people make trades and the token amounts in the pool shift.
👉 In this example, the formula relies on the starting quantities of 10,000 DAI and 10 ETH in the pool, resulting in a constant product of 100,000.
The following calculations explain how these figures were determined:
- ✖️ Constant Product: 100,000
- 💰 New DAI Supply: 10,500
- 💰 Remaining ETH Supply: 9.5238 (100,000 / 10,500)
- 💰 ETH Obtained by the Buyer: 0.04762 (10 – 9.5238)
Consequently, the updated pool supply is as follows:
- DAI: 10,500 * $1 = $10,500
- ETH: 9.5238 * $1,000 = $9,523.80
👉 Now, let’s say the price of ETH reaches a value of $1,250.
If you had held onto your original deposit, its worth would have been:
However, the remaining pool value differs:
Due to the swap, the number of ETH tokens decreased to 9.5238, resulting in an exchange value of $11,904.75 (9.5238 * $1,250).
Although the value of your DAI increased by $500, it was insufficient to avoid an impermanent loss. ❌
Consequently, following the swap, you experience an impermanent loss amounting to $95.25:
$22,404.75 (value after swaps) – $22,500 (value if held) = -$95.25 (impermanent loss) ❌
😏 How To Avoid Impermanent Loss?
When it comes to dodging impermanent loss, there are several strategies that can help reduce the risk and ensure a smoother crypto ride.
- Choose Low Volatility Tokens 💰 Opting for stablecoin pairs or equivalent tokens like ETH and WETH can be a smart move. These pairs typically experience lower price volatility, minimizing the chances of impermanent loss. In return for added safety, you might expect slightly lower fees.
- Join the Big League 😎 Size matters! Joining larger liquidity pools can work in your favour. These pools are better equipped to handle significant swaps without causing drastic price impacts. By swimming with the big fish, you can navigate the waters of impermanent loss with greater ease.
- Patience is Key 🔑 Sometimes, patience pays off. If you’re providing liquidity for high-demand tokens on a bustling platform, your impermanent loss may be temporary.
- Shake Up the Liquidity Ratio ⚡️ Some protocols offer the flexibility to choose a token ratio other than the traditional 50/50. Adjusting the ratio by allocating a lower percentage to more volatile tokens can help mitigate the risk of impermanent loss. It’s like finding the perfect recipe that balances flavours just right.
- Set Your Trading Range 🔢 Uniswap comes to the rescue with a nifty feature that allows you to set a trading range for your position. Tighter trading ranges offer increased safety but may require more frequent adjustments as prices fluctuate. It’s all about finding the sweet spot that suits your risk tolerance.
😌 In The End…
Impermanent loss, the mischievous troublemaker of liquidity pools, can be tamed with a sprinkle of fun. From low-volatility pairs to single-sided liquidity pools, there are tricks to reduce this risk.
- Start small 💰
- Learn from the data 🤓
- Gradually expand your positions 🤯
Remember, no matter the amount, the math remains the same. But starting small adds an extra layer of safety. So, buckle up, and let’s conquer impermanent loss with a smile!
Happy investing, and may your liquidity journey be filled with laughter and victorious moments. Together, we’ll become liquidity legends! 🔥
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What are Liquidity Pools? – 5-minute Explained
In the realm of decentralized finance (DeFi), liquidity pools have splashed onto the scene, making waves and revolutionizing how assets are traded and liquidity is provided 🌊
So grab your snorkel and let’s explore the depths of liquidity pools, uncovering their importance and how they can make a splash in your financial journey.
What are Crypto Liquidity Pools? 🤔
A liquidity pool refers to a pool of funds that are securely held within a smart contract. These pools play a vital role in enabling various decentralized activities, such as trading, lending, and other essential functions.
Liquidity pools are like the secret sauce behind many DEXs, such as the famous Uniswap. Think of liquidity providers (LPs) as the fearless heroes who add equal amounts of two tokens into a pool, creating a market full of excitement 🚀
And guess what? As a reward for their bravery, they earn trading fees based on their share of the total liquidity 💰
Thanks to liquidity pools, the practice of facilitating trading in financial markets is no longer limited to a select few. It’s an inclusive gathering where anyone can participate and make a significant impact!
While Bancor was one of the pioneers in using liquidity pools, it was Uniswap that truly made waves and caught everyone’s attention 🔥
But the fun doesn’t stop there! Other popular venues like:
- Curve
- Balancer
- PancakeSwap
…and so many more also offer their own delightful liquidity pools, filled with ERC-20 tokens that’ll make your head spin 😎
How to Use Crypto Liquidity Pools? 🤔
Let’s dive into an example: Imagine you, the adventurous trader, decide to try your luck with Uniswap. Here’s how you would go about it:
1️⃣ Select a token pair
Like picking the perfect dance partner, choose the pair of tokens you want to provide liquidity for. Take a look at their TVL, trading volume, and potential price divergence in the future.
2️⃣ Review Fee Tier
Now, let’s talk fees! Each token pair offers different fee tiers. Uniswap offers 0.05% fee tier, perfect for those stable pairs that always keep their cool. The 0.30% fee tier suits most pairs, where prices can swing like a wild roller coaster. And for those exotic pairs with heart-stopping price movements, the 1.00% fee tier is where the adrenaline junkies belong!
3️⃣ Set Price Range
Time to make your move! Choose a price range that you believe will keep your position swimming in the right direction. Keep in mind the market’s movements, your willingness to manage the position actively, and the economics of those fin-tastic transactions.
Remember, if the price swims outside your range, you’ll be swimming with one asset and not earning fees until it returns to the range.
4️⃣ Deposit Amounts
Let’s dive into the deep end! Decide how much capital you want to contribute to your liquidity position. Adjust the ratios and amounts based on your chosen price range. It’s like balancing on a floating surfboard, finding the perfect harmony between your assets.
5️⃣ Approve and Add
Get ready to submit the transaction and make a big splash. First, you might need to give the Uniswap v3 router contract permission to spend tokens on your behalf.
Once that’s done, preview the transaction details, and with a big smile, click that “Add” button to trigger the transaction in your wallet.
Now you just have to hold on tight, because the real magic is about to happen!
You will almost instantly start earning rewards on the liquidity you add to the pool and the reward would be in the respective tokens you’ve supplied.
You could earn rewards for a week, several months, or however long you and the pool agree to ride the waves together 🌊
Ready to leave the pool and take a breather? Simply redeem your LP tokens, and voila! You can retrieve your initial deposit along with any rewards you’ve earned 💰
Keep in mind that withdrawing liquidity might cause a ripple effect on the pool’s overall liquidity and potentially lead to impermanent loss 📉
Advantages and Disadvantages of Crypto Liquidity Pools 🤔
Let’s break it down into bite-sized tidbits:
Advantages
- No More Order Books ⛔️ With liquidity pools, trading is smooth and slippage is minimized, making your token swaps a breeze.
- Liquidity, liquidity, liquidity! 💧 By pooling your tokens, you contribute to the overall market liquidity, ensuring a vibrant and thriving DeFi ecosystem.
- Earn Rewards 💰 Liquidity providers can dive into a sea of passive income by staking their tokens and collecting rewards from the pool.
Disadvantages
- Impermanent Loss 📉 Impermanent loss is a risk that arises when you join DeFi liquidity pools. It occurs when the value of the assets you deposit changes over time. It’s like the phantom menace of liquidity pools. But fret not, we’ll have a whole article dedicated to this topic soon. Stay tuned!
- Smart Contract Risk ⚠️ The legitimacy of the underlying smart contracts will always be an issue. Make sure to check the security measures and audits of the liquidity pool protocols before taking the plunge.
- Market Volatility 🔻 Crypto can be as unpredictable as the tides. Keep an eye out for sudden price fluctuations that may impact the value of tokens in the pool, affecting your potential profits.
Examples of Crypto Liquidity Pools 🤔
Let’s meet some of the popular liquidity pools that are making waves in the DeFi ocean:
- 🦄 Uniswap – The rockstar of decentralized exchanges, Uniswap offers a range of liquidity pools for seamless token swaps. Dive into their pools and experience the thrill of trading directly from the depths!
- 🥞 PancakeSwap – Get ready to feast on some sushi while earning rewards. PancakeSwap not only offers liquidity provision but also tantalizing features like yield farming and revenue-sharing for liquidity providers. It’s a pancake party for your portfolio!
When comparing different liquidity pools, remember to consider factors like fees, rewards, token availability, and user experience. Each pool has its unique flavor, so take a dip and find the one that suits your taste.
Final Notes
Liquidity pools are one of the core pillars of the current DeFi technology stack. By understanding how liquidity pools work, you can enjoy:
- Seamless trading ✅
- Contribute to market liquidity ✅
- Earn rewards ✅
These liquidity pools smart contracts energize nearly every nook and cranny of DeFi, and it seems they’re destined to keep rocking the show! 🔥
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Introducing Krystal Wallet’s Dino Collectibles: The Next Generation of NFTs
Unleash your creativity now with Krystal’s all-new Dino NFT Collectibles! Whether you’re hip hop or punk, glam or grunge, collect, mix, and match items to create your very own unique NFT collection that reflects your style and personality.
The Dino NFT collection is a series of unique and adorable non-fungible tokens (NFTs) that live on the Polygon chain. Each Dino NFT has its own unique combination of attributes, consisting of:
- Head
- Face
- Body
- Hand
- Leg
Endless NFT possibilities The possibilities are endless. Create a one-of-a-kind Dino NFT and make it uniquely yours.
How to Create a Dino NFT?
To start, create/import a wallet on Krystal mobile app, or connect a wallet on Krystal web app.
#1 Collect Eggs
- Complete daily missions to collect eggs which will allow you to start participating in the Dino Collectibles game.
- Once you have enough eggs, you can start redeeming them for Dino body parts.
#2 Create your Dino NFT
To create your own Dino, you need to collect at least one body part from each category.
- Spend eggs to collect body parts.
- Mix and match different combinations of body parts from each category to customise your unique NFT.
- To complete your NFT, you have to have at least 1 body part in each attribute category.
- Once you are satisfied with your creation, mint your NFT! There is no platform fee, but you need MATIC to pay the gas fee for minting.
How to Earn Eggs?
You can start earning eggs by completing daily missions. There are a variety of missions to choose from, and each one will reward you with a different number of eggs.
What can you do with a Dino NFT Collectible?
Once you’ve minted your Dino NFT Collectible, you can do whatever you want with it. You can:
- Transfer it to another wallet
- Trade it on an NFT marketplace
- Flaunt it on social media
- Receive exclusive benefits for all NFT holders in the future. So stay tuned for more perks to come in the future.
Dino NFT Collectibles are unique and valuable assets. With so many possibilities, there’s no limit to what you can do with them.
So what are you waiting for? Be part of Krystal Wallet’s first NFT community today and unleash your creativity with your Dino NFT creations. Have fun expressing yourself and maybe even win some prizes along the way. Don’t miss this opportunity to own a piece of digital art that you can truly call your own.
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Cross-Chain Swaps: Unlocking the True Value of Multi-chain
In the rapidly evolving landscape of blockchain technology, interoperability has emerged as a crucial factor for the widespread adoption of decentralized systems.
What is interoperability? It simply means the exchange of data between many different blockchain networks.
With new types of blockchains being created almost every year, more people want to explore and learn about them. As evident from the data of Uniswap usage, Ethereum is not the ONLY blockchain on which users are transacting. Blockchains like Arbitrum, Polygon and Optimism are making significant strides in acquiring more users.
Source: Dune It is also worth noting that this data is only from chains supported by Uniswap. There are many more chains that aren’t supported by Uniswap but still have a large user base transacting actively.
One promising solution that facilitates seamless communication and value transfer between all these different blockchains is cross-chain swaps. This blog explains the concept of cross-chain swaps, their inner workings, advantages, and different types.
Key Takeaways
- Cross-chain swaps enable the transfer of digital assets between different blockchains.
- They promote interoperability and eliminate the need for intermediaries.
- Cross-chain swaps enhance liquidity and expand the utility of blockchain ecosystems.
What is a Cross-Chain Swap?
Simply put, a cross-chain swap allows users to exchange assets between two different blockchains without the involvement of a centralized exchange or custodian. It enables direct peer-to-peer transfers, preserving the “minimum-trust” or “trustless” nature of blockchain technology.
Cross-chain swaps offer a solution to the challenge of moving assets across isolated blockchain networks, unlocking new possibilities for users and developers alike.
For example, it eases the process of moving your funds on the Ethereum blockchain to, let’s say, the Polygon ecosystem.
How Does a Cross-Chain Swap Work?
Cross-chain swaps rely on the use of smart contracts or specialized protocols to facilitate the exchange of assets between blockchains.
The process typically involves the creation of a unique transaction that locks the assets on one blockchain while simultaneously generating a corresponding transaction on the target blockchain. Once the swap is initiated and confirmed on both chains, the assets are effectively transferred from one blockchain to another.
Types of Cross-Chain Swaps
- Atomic Swaps: Atomic swaps rely on using time-locked smart contracts to enable direct and trustless asset swaps between compatible blockchains.
- Wrapped Tokens: Wrapped tokens represent assets from one blockchain in the form of a token on another blockchain, allowing for cross-chain transfers through tokenized representations. For example, creating a wrapped version of the ETH token (WETH) on the Polygon blockchain.
- Interoperability Protocols: Various interoperability protocols, such as Polkadot and Cosmos, provide frameworks for cross-chain swaps, enabling communication and asset transfer between participating blockchains.
The Advantages of Cross-Chain Swaps
- Interoperability: This is one of the biggest advantages. Cross-chain swaps bridge the gap between isolated blockchain ecosystems, allowing for seamless communication and the ability to bridge or swap tokens to another network with ease.
For example: If you hold tokens on the Avalanche network, you can bridge it to Ethereum or any other network with just a few clicks using a cross-chain swap.
- Increased Liquidity: Cross-chain swaps unlock new and bigger liquidity pools by connecting previously isolated blockchain networks, enabling users to tap into a wider range of assets and trading opportunities with better rates.
For example: If you hold a token that has lower liquidity on Ethereum but has a higher one on BNB Smart Chain, you can quickly move your assets to that chain using a cross-chain swap and enjoy more liquidity.
- Enhanced Efficiency: By enabling direct peer-to-peer swaps, cross-chain swaps streamline the asset transfer process, reducing costs and increasing transaction speed.
We, at Krystal Wallet, believe that it is our job to make it easier for users to explore and use all types of blockchains. This is why we chose to build the cross-chain swap feature in our wallet. Soon, users will be able to swap assets between 8 different chains with just a few clicks.
The supporting chains include:
- BNB Smart Chain
- Avalanche
- Ethereum
- Optimism
- Arbitrum
- Polygon
- Fantom
- Aurora
Final Notes
- Cross-chain swaps have emerged as a powerful tool for enhancing interoperability and expanding the functionality of blockchain ecosystems.
- By enabling direct peer-to-peer transfers between different blockchains, cross-chain swaps promote decentralization, unlock liquidity, and open up new possibilities for users and developers.
- As the crypto industry continues to evolve, cross-chain swaps will play a pivotal role in driving the seamless integration of various blockchain networks, further advancing the adoption of decentralized systems.
About Krystal Wallet
Krystal is the simplest web3 wallet for everyone. On a single application, access cutting-edge portfolio management & market insights tools, swap & bridge tokens, earn passive income and participate in token sales via its IDO launchpad, KrystalGO. Additionally, users earn points and rewards from in-app activities as part of its loyalty program.
Krystal currently supports DeFi services on 11 blockchain networks, including Ethereum, BNB Smart Chain, Polygon, Avalanche, Fantom, Cronos, Arbitrum, Aurora, Klaytn, Solana and Optimism. Explore Krystal today on mobile app (iOS and Android) and web app.
