EOSX.io is an all-in-one block explorer and wallet allowing users to explore and search the EOS and other EOSIO blockchains for transactions, accounts, tokens, prices, as well as vote, create accounts, manage proxies, buy and sell RAM, and more.
One recent addition to the EOSX block explorer is the new DeFi portal. With DeFi being the next big thing across the whole of blockchain and crypto, EOSX not only saw the potential of DeFi on EOS but also a need to be able to view and manage the vast variety of DeFi projects popping up on EOS from one location and simple interface. Even at present, the EOSX DeFi portal is unique in its ability to be a one-stop-shop to interact with the majority of DeFi projects all from one place on the EOS blockchain.
The EOSX DeFi portal offers a number of ease and advantages to users in the EOS ecosystem when it comes to DeFi. Not only does it make the discovery of yield farming opportunities a breeze, but it also allows a simple yet informative interface allowing for a side by side comparison of projects to see for example which projects might be audited, open sourced, and turned over to a multisig contract as opposed to having the keys under single signing authority.
In addition to all this, and likely the most sellable feature of utilizing the EOSX DeFi portal is the ability to easily claim all rewards simultaneously from all supported DeFi projects. This not only saves time but also helps to protect users from phishing websites or mistakenly failing to verify the site one is on is legit. Although relatively new, with all of the potential capital about to flow into the crypto DeFi space, EOSX took the stand that the ability to not have to be jumping around between a variety of websites to check on and interact with various DeFi projects would be the safer bet, and that in a nutshell is the what and the why of the EOSX Defi Portal. And with that out of the way, it is now time for the how.
In the DeFi menu you will see three categories; Claim Projects, Sell Projects, and SX Vaults. Here is a quick explanatory guide on what can be done with these tabs and any other relevant information to help navigate the associated pages.
The Claim Projects tab allows users to claim all DeFi projects in a simple comprehensive interface instead of hopping from page to page just to claim rewards. Simply login to your account, check the boxes of the projects that you wish to claim, click the claim button at the top right of the page, read and sign the transaction, and viola, finished in one fell swoop till the next time you wish to claim all your rewards.
The Sell Projects tab in the DeFi portal allows users to quickly market sell all selected DeFi tokens all at once. After logging in, all token values held within the account are displayed in the yellow box adjacent to each token. By utilizing the slider at the top ranging from 0 to 100, the percentage of their portfolio in combination with checking the boxes of the tokens one wishes to sell can be sold into a market order whereby the market with the most liquidity will automatically be chosen. After making the desired choices simply click on the sell button at the top right and sign the transaction that pops up to execute.
SX Vaults having only been open to the public for 24 hours, the flash.sx contract broke the +500K USD (TVL) with over 177K EOS.
Although this may seem impressive, considering what the SX Vaults actually do and with almost no advertising, this is rather impressive.
The SX Vaults process follows interest yielding strategies that are designed to maximize the yield of the deposited asset and minimize risk. Simply deposit EOS into the Flash Loan Vault and receive SXEOS tokens in return. These SXEOS tokens can then be redeemed at a later date back at the vault for the initial EOS in addition to any accumulated interest generated by the Flash Loans.
Each vault is initially priced at 1:10,000 ratio, as interest is accrued in the vaults, the price ratio decreases, thus increasing the price and counting towards a fee payout mechanism tied into the payout from generated fees.
Having only been opened to the public the flash.sx contract has officially broken the +500K USD (TVL) with over 177K EOS.
And yes, in case you were wondering, the smart contract has been audited by SlowMist and is multi-siged to ensure the maximum protection that can logistically be granted in the world of EOS and DeFi.
As the latest feature to be added, and conceptually something new to the EOS blockchain and relatively new to the space in general, it might be worth taking a look at the answers to some commonly asked questions brought about through musings of scouring through the official EOSX DeFi telegram channel.
Who developed the Flash Loan contract and can I be sure it is safe?
The contract was developed internally, undergone auditing by SlowMist, and has been in production for over 8 months. Both contracts are also open sourced and can be viewed at https://github.com/stableex/sx.flash and https://github.com/stableex/sx.vaults respectively.
In regards to utilizing SX Vaults, is it a typical staking platform with a lock, a pool mining system, or something else entirely?
There is no staking, your deposit is completely liquid. The EOS interest yielding strategy comes from the flash loan contract noted above. The more loans that are borrowed, the more fees the vault accrues over time which are subsequently paid out to those who deposited EOS in return for SXEOS into the contract.
Another thing worth noting is that there is no claim action required, the whole process is automated into a "deposit & forget" model. In addition there is no term to this, meaning you can deposit EOS in exchange for SXEOS and vice versa any time you want.
How is the APY calculated?
The fees are collected and distributed equally amongst all vault owners. The more deposits there are, the lower the yield will be and vice versa.
Are there any fees, risk of slippage, or potential loss to principal deposits upon withdrawal?
WIth the way the contract is designed, there is absolutely no slippage. There are also 0 fees or plans to implement the latter in the future. In fact the only possible loss is 0.0001 EOS due to the rounding down on withdrawing your deposits within less that ~30 seconds.
The contract itself actually utilizes the REX math formula, meaning any deposit/withdrawal is always proportional to the deposits. Essentially just as in REX, when you deposit you will always be able to receive your initial deposit of EOS plus any fees that were accrued over the time the tokens were deposited.
As for risk, the strategies used for the EOS deposited are designed to have no loss (flash loan and/or REX). The only risk really is smart contract logic flaw, but with SlowMist audit and a MSIG’ed contract between 8 other teams, the team has done pretty much as much due diligence as humanly possible on their end.
The main focus of the audit actually was trying to "exploit" the flash loan mechanics. With the code being open anyone can analize it and see if they can find vulnerabilities. The code itself is only about 100 lines and pretty straight forward to read for anyone with experience. There are also some examples that have been included on how to integrate (for smart contracts to use our flash loan) at https://github.com/stableex/sx.flash/blob/master/examples/basic.cpp
How is this different from other DeFi and staking protocols that pay out based on holding weight of the general lender/deposit pool?
The main difference here is in the ability to transfer the SXEOS token you receive in return for depositing EOS into the vault. In this way the single sided liquidity SXEOS tokens can be transferred between accounts or even to someone else. The smart contract in fact does not keep track of individual accounts as it does in staking pools or other DeFi protocols, but rather only grants redemption of your principal EOS plus any accrued fees by redeeming the SXEOS tokens.
The dividends in fact are distributed by increasing the value of SXEOS tokens over time. The initial ratio was 1:10,000 (same as REX) and the ratio will continue to be lower ( due to increasing the price) over time as interest is accrued into the contract.
Can you explain what the terms are for the flash loans? Where can I see how the loans are being processed to the public, i.e. what are the use cases?
Users can borrow any amount of available EOS balance within the flash loan contract. For example if there is 10K EOS, up to 10K can be borrowed. The flash loan must be repaid in full plus interest at the end of the borrow transaction. This makes it ideal for trading engines that need access to capital quickly and repay the loan immediately.
Who are the users, where are they borrowing from (I only see vault), and what collateral do the borrowers put up for 10k to deter default?
There are two types of users: Those who simply want to deposit in the vault and earn their proportional share of trading fees generated by those who are using the flash loans, and those
using the flash loans themselves needing access to free capital in a trading engine.
It is worth noting that neither of those users need to have collateral. That is actually the point of the flash loan - it is absolutely no risk. If the trade is not profitable nothing happens, but if the trade is profitable you keep the delta. In other words treat it similar to an ‘unsecured revolving line of credit’ that anyone and their grandmother can access
Essentially,it is as easy as one, two, three. (1) Borrow money, (2) Trade, and (3) if it was a successful trade, pay back the loan with interest, and repeat. If not successful, the trade never happened and you never had access to any liquidity.
Remember, the trading contract does not have liquidity so there is nothing to lose. It all happens within the same block, meaning on EOS hundreds of these are possible each and every second.
How frequently is the APY updated?
Currently there's a 24 hour delay when calculating the yearly growth. With the current amount of deposits, the APY is expected to normalize at around ~10%, although it will really depend upon how active the markets at any given time are.
Are there any other future implementations planned that will contribute to users returns?
Yes. Multi interest yielding strategies which include staking REX & high interest proxies will be implemented. However bear in mind because of the block structuring, only a portion of the liquidity will be used for REXmanaged by our proxy rebalancing contract. About 65% will be staked at first, but once the REX loans mature, we can look into increasing the percentage. In this manner there will always be enough liquid EOS that allows anyone to deposit/withdraw at any time without any enforcing staking periods on the users which is sometimes mandated by other staking initiatives.
And of course as evidenced by anyone who follows the EOSX DeFi official telegram channel, updates in the basics of what is already operational are constantly being rolled out to increase functionally, efficiency, and speed, among other things.
Special thanks to Joe from EOS Asia/Polar.io as well as Denis Carriere and Yves LaRose of EOS Nation for providing the more technical details for the compiling of this post both directly and indirectly through browsing through the telegram channel. Should you have any further questions we have it on pretty good authority that they will be more than willing to help you in any process or understandings you are having troubles with. Simply head on over to https://t.me/eosxdefi to say hi and let those questions fly.
And in closing this piece out, another really good simplified resource well worth checking out is the recent Defi Flash Loans on EOS article by The Cryptomist