Your SEEDS Decentralised Exchange and DeFi Guide
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What is DeFi? DeFi stands for Decentralised Finance. SEEDS has a myriad of DeFi applications for members to engage with and this is your guide!
To start off addressing a common question these exchange listings are not SEEDS “go live” this is simply Seeds being listed on a more-active decentralised exchanges across the expansive world of web3.
Telos DeFi: Native Seeds
“Native Seeds” are what we call Seeds that exist within the SEEDS applications and on the Telos blockchain… Non-native Seeds are those that exist within ecosystems beyond Telos (such as Ethereum or Cosmos).
First, get yourself a DeFi wallet
For accessing all the Telos DeFi platforms we recommend Anchor (soon the SEEDS Light Wallet will work for this, but until then), works for mobile and desktop. https://greymass.com/en/anchor/
Follow the prompts to set up a “Telos account” and put in your private key that you can obtain from your SEEDS Passport or Wallet.
Then, you’re ready to enter the world of Telos-based DeFi.
Seeds Swap
The Seeds Swap is the place where SEEDS ecosystem DHO’s and organizations can list their project tokens for swapping with Seeds.
Believe in where Hypha is going, or needs some Hypha tokens for your DHO? This is the place to get some Hypha or other DHO tokens!
Swapping — aka trading tokens
Select the token you’re wanting to sell on the left, and the one you’re wanting to buy on the right. Enter the amount you’re wanting to sell our buy, click convert. That’s it!
The “slippage” is how much the price will change from the listed price to the actual price that you pay to purchase your tokens. Generally speaking, the more you buy at once, the greater the slippage.
“Pooling” — Do you have some tokens that you’re holding right now and you want to start earning some trading fees?
You can get rewarded for adding “liquidity” to “swap pools” and earn a share of the fees generated when other users trade with those pools (e.g. trade between the two tokens of the pool. Like the Seeds <-> Hypha pool).
Pool = An account that’s holding 2 different tokens so people can trade between those tokens.
Pooling:
- No commissions or fees when you deposit or withdrawal liquidity.
- Your liquidity can be withdrawn at any time.
- Most liquidity pools charge a 0.5% trading fee which is given to the liquidity providers (the people who added their tokens to the pool).
This means you can earn trading fees by adding your tokens to a pool! To provide liquidity, you send in an equal 50/50 split of the 2 tokens at the current price. If you have more of 1 token than another, you can swap for the other token to get closer to the 50/50 split you’re seeking.
Any time someone converts from one of the assets to the other, it charges a 0.5% fee that is paid to the liquidity pool. You get to claim the percentage of the fees based on the percentage of the liquidity pool you have contributed.
So, if you’re just holding a bunch of 2 different tokens, adding liquidity to a pool could be a good way to potentially earn some passive income.
Warning! These mechanisms are complex and if one or both of the tokens in the pool dramatically and continually decreases in value then you risk losing more money, than if you simply just held onto the tokens. It’s advised to only add liquidity to pools representing projects and assets that have sound fundamentals.
That’s it, have fun swapping and pooling.
T-Swaps
T-Swaps and Seed Swaps work the same. Indeed, they share a similar code base. So, follow the same process as with the Seeds Swaps to start swapping with other assets in the wider world of Telos!
Alcor
Alcor is another Telos Based exchange that offers a much wider and more complex array of tools, such as minting NFT’s, adding your own tokens, traditional markets, swaps, and doing OTC (over the counter) trades.
Newdex
For traditional limit orders using TLOS or EOS, you can use Newdex.
Now, for DeFi beyond Telos…
Ethereum: Seeds on Eth
Click here for Ethereum Seeds Token details.
First, a wallet
You’re going to need an Ethereum wallet to hold Ethereum assets. Metamask is great for this.
Once you have the Metamask wallet, go to the bottom and click “add token” then put in the SEEDS Ethereum Token address:
0x6db338e6ED75F67Cd5A4eF8bDf59163b32d4bD46
Second, the Bridge
We have teamed up with pNetwork to unlock the world of Ethereum for Seeds! This is the first step in taking Seeds to other ecosystems within the expansive world of web3!
When it comes to cross-chain interoperability pNetwork provide an extremely valuable service. Its bridge enables the seamless movement of assets between different blockchains. Thanks to pToken, now SEEDS holders are able to swap their native SEEDS for pSEEDS, the Ethereum ptokenized version of it.
Click here to access pNetwork dapp and swap your native Seeds for Ethereum Seeds.
pNetwork is the underlying architecture for pTokens, a cross-chain system enabling assets to move frictionlessly from one blockchain to another. Currently, pTokens enables transparent interaction among major blockchain protocols, including Bitcoin, Ethereum, EOS and TLOS. pNetwork is the progressively decentralized governance layer operating the pTokens bridges and pNetwork Portals.
- Processing times are unpredictable on Ethereum. Be patient.
2. Warning! Trading your native Seeds to Ethereum Seeds is free (all SEEDS actions are). However, trading back Ethereum Seeds to Native Seeds incurs Ethereum transaction fees (unpredictable) and a 0.25% fee from the bridge provider.
Uniswap — Eth DEX (Decentralised Exchange)
You can trade your Seeds on Uniswap for Eth, or you can trade your Eth for Ethereum Seeds!
Click Here to swap Seeds <-> Eth
Uniswap Liquidity
Hypha passed a proposal to provide $1M USD in initial liquidity to the Eth-Seeds Uniswap pool (same philosophy as the Seeds Swap mentioned before).
Hypha provided split liquidity between two ranges:
- Pool 42780: $500K: low $0.02 to high $0.25
- Pool 42800: $500K: low $0.006 to high $0.97
Meaning, that the $1M in liquidity is concentrated between these two ranges.
Further, for radical transparency. Hypha intends (though this may change as we learn more about how this listing goes) to provide additional liquidity once Hypha enters its 3rd and final sale (from $0.27 to $1.38) on either Uniswap or a combination of DEX’s that the SEEDS community prefers by this time.
The USD value of these ranges will shift as the price of Eth does. These are just the initial ranges.
Arbitrage
We encourage the community to arbitrage (e.g. buy Seeds from the Hypha sale and sell on Uniswap) if ever the price of Seeds on Uniswap exceeds the price from the Hypha sale. Below are the prices that Hypha is selling Seeds for and the amount of Seeds (in USD value) available at each round.
To make money doing arbitrage the opportunity needs to be higher than the fees; for you to make a profit.
Fees include:
- 1 Uniswap trade fee (variable).
- 1 Etherum transaction fee (variable).
- 1 bridge fee of 0.25% (if you want to come back to SEEDS).
More DEX’s coming soon!
Now that we’re expanding into the wider world of Web3, anyone in the SEEDS community is able to open up Seeds pools on any Ethereum DEX’s.
Hypha is actively working on relationships with Cosmos and Polkadot to provide bridges to those ecosystems.
