Smoothy Finance is a one pool liquidity protocol. Its primary focus is on assets with low cost zero slippage swapping and the highest interest possible.
Smoothy has an outstanding Dynamic Cash Reserve Algorithm. The system sets aside funds in the pool, and a big chunk of it is for deposits that produce interest. The remaining funds are for daily swap requirements. Consequently, the gas fees will drop since there is no more involvement with smart contracts from other decentralized finance protocols.
As it stands, 10% of the total stake tokens are reserved, while 90% is set aside to plough interest. Smoothy keeps in mind the need for deposits and earning interest simultaneously. All these happen with excellent efficiency and low gas prices in a single pool. Smoothy allows small amounts to be swapped, far from being simple to use.
Smooth Swap employs an algorithm that guarantees a 1:1 ratio swap almost all the time. In a nutshell, Smoothy has one pool that supports swapping with interest that is characterized by nil slippage, free swaps, minimal gas prices, and maximized interest earnings.
Smoothy. Finance token
Smoothy’s governance token is SMTY. Its function is to manage upcoming projects and asset liquidity incentivization in a non-decentralized. The starting swap fee stands at 0.04%. 0.03% goes to the liquidity pool while the remainder is converted to SMTY.
Every interested party starts on level ground, no private sale or pre-determined portions for investors and the foundation. The only way you will lay your hands on this token is through an application or injecting liquidity.
- Q2 2020: This phase involves research, the experiment code, and whitepaper.
- Q3 2020: This section is all about documentation, product test, and demo. Additionally, it involved the V1 product launch, including swap, mint, redeem, save, farm, and governance module.
- Q4/Q1 2020: V2 product launch with advanced governance module and pricing function together with better slippage.
- Q2/Q3 2021: V3 product launch with lending.
The expansion of decentralized finance is very rapid, and several assets have been introduced to the Ethereum network. At the moment, there are several asset-backed tokens. As time goes, more tokens will be unveiled.
The issue is that in the current decentralized exchange, the swap needs were not fully put into consideration during the design phase. This brought about skyrocketing charges for the users because of slippage.
Curve.fi and mStable are protocols that are equally good but lack a solution for slippage and have a trade-off between high gas prices and interest. This is where Smoothy is regarded as the best option to go for.
Decentralized finance contracts can realize operations the same way banks receive deposits and give out loans. Liquidity providers can earn interest and receive swap fee benefits; however, the ecosystem has an extensive interaction path that minimizes funds trading efficiency and spikes gas prices.
As a result, selected projects have been compelled to choose giving up interest-earning or low gas fees. Getting rid of interest-earning results in higher efficiency and reduced gas fees. When giving up low costs, long-term deposits are offered as well as interest.
Other protocols set up two different trading pools and channel the funds within the project and reduce liquidity. Smoothy welcomes programmers, test engineers, marketing specialists, and liquidity providers to make Smoothy better.
If you are interested in joining, there’s a google form where you can write a brief introduction and explain what you have to offer to make Smoothy better.