Harmony ONE is my top choice for this summer! I think it is going to do exceptionally well! But wait I hear you say,
It has mooned already! It’s too late! It’s a new ATH!
I can’t emphasize this enough. Last week, I shared in my discord chat and I went to Reddit to basically drop my optimism for the platform but it was mostly handled with a, “it has already mooned.” or “this project can only do x2 more.” Now a week later it has already doubled. This will be my point of view of why I am so bullish on Harmony ONE from a PRATICAL standpoint. Yes there is a non ANON team and other factors not being addressed in this article.
How I got introduced to Harmony ONE
Make no mistake, I stumbled on Harmony one luckily. I bought a bunch of coins on crypto.com. I don’t even remember how I chose them. January of 2021, I was rebalancing my portfolio since I made a decent amount of money and I decided to drop $50 into several projects. Then, one day I opened up my wallet to check things out and it was $1000 USD worth from Harmony ONE. My $50 turned into $1000 what? Should I sell now? Should I keep it? What is this coin even about? I asked myself. So I did some digging and a lot of reading and you know what I found out? This coin hasn’t been talked about very much? How is it possible that I can do a transaction for 300 quadrillionths of a penny, and more people aren’t bullish about this? It’s because, in my opinion, not a lot of people know what Harmony ONE has to offer.
If you have known me for a while, I have been super bullish about Stellar. It’s mostly because I am very fond of my Blockcard from Ternio, but I like that I can transfer my assets basically free. But… Stellar doesn’t have smart contracts and if I am not mistaken, this is even cheaper than stellar. I don’t think Stellar is going away any time soon but this is the huge selling point for a lot of tokens. XLM XRP NANO, the list can go on. People like saving money from transaction costs.
BSC yield farming craze is because people can save on fees (which will be explained further below). Feel like you are missing out on the BSC yield farming craze but you don’t like Binance? Well Harmony ONE might be the answer for you. Harmony ONE has over 1000 nodes running and processes each block within approximately 2 seconds with transaction costs of about a fraction of a penny.
Fractions of a penny and 2 second block timers? Yep you heard me right! This is a transaction that I did today!
Check that out! At the time of writing, I transferred about $1000 USD worth and paid 0.0000000000000310743 of a USD penny! That’s what? 300 quadrillionths of a penny? AND it was faster than BSC or ETH?
Using Harmony ONE
Okay okay so yeah transactions are fast and cheap. So what? Big deal. Well, this post is about Harmony ONE but let’s sidetrack for a second and let’s talk about Viper Exchange. This isn’t a shill for Viper. If they scammed out later today, the point is still the same of why I am bullish on Harmony ONE.
Viper exchange is the only real yield farming DEX on Harmony that I know of… But it is pretty impressive (mochiswap supposedly is coming soon, like this week!). Check out these APR rates and TVLs.
Up to 17,000% APR at the time of writing? That’s insane! The only 17,000% APRs that I have been getting with BSC are for first day launches or something. This project is entering week 3? And has a staggering 4.5M TVL (at the time of writing). Sure, that’s still small in the grand scheme of things… But let’s get back on track here.
BSC has blown up in the last weeks because projects are launching over there because it is cheap to launch a project and you get thousands and thousands of new clones/projects. Why pay $250 or $500 or more to launch a project on ETH when you can play a couple bucks on BSC? Well that’s a long winded conversation but to launch a project on ETH let me give you some breakdowns of rough estimates.
Assuming each contract is only $250 to deploy on ETH, here are some basic contracts you’ll need to launch a DEX. Let’s make EXAMPLE token. If my understanding is correct, I am pretty sure you’ll need to launch a farming contract and probably a couple others but let’s ignore those for this example.
(1) Dex contract
(4) Each initial liquidity pool pairing (EXAMPLE<>ETH, EXAMPLE<>USDT, ETH<>USDT, ETH<>WBTC)… 4 pairings is pretty low but let’s run with it.
(4) Each farming pool contract
That’s 9 contracts. Simple math here, 9 x 250 = $2250 USD worth but potentially double or more depending on gas fees when you launch your token. Now, take that on BSC and you could launch those same 9 contracts (and probably more) for… $6.64 per contract at the time of writing. Now, what if you were paying literally fractions of a penny? That initial $2250 you used for deploying on ETH you could use for development or initial liquidity. It’ll be so much cheaper.
Back to Harmony
If you can deploy contracts for basically nothing in Harmony, AND you can get the same contracts in Harmony as you do in BSC or ETH then Viper exchange is just the beginning. Harmony has a bridge to ETH right now but they are also working on a bridge to BSC. How long until you see CAKE minted into Harmony and you see pancakeswap clones pop up? I would assume we are within months, maybe even weeks until that happens.
Again, not a shill for VIPER, but they recently added a ETH-ONE pairing to offer rewards. Before they added that, there was only ~40 ETH wrapped onto Harmony using the bridge. How many are there now?
More than 250 ETH minted into Harmony in less than a week with 239.43 ETH locked into Viperswap. Again this isn’t a shill for viperswap. But think of the significance of this. 239 ETH entered into Harmony platform within less than a week JUST to chase APR yields. Don’t get me wrong, I love the APR yields and I added quite a significant amount and earned myself some nice yield farming… BUT so what? What if some yield farmers throw in their ETH into Harmony? Well that’s 239.43 ETH that had to be paired off with ONE tokens. How many ONE tokens were purchased in order to pair off with Ethereum? What about all the other ERC tokens that aren’t on Harmony yet?
Harmony ONE is working on the cross bridge for Bitcoin as well! Sure right now if Viper wanted to, they could use WBTC-ONE pairing on the platform for yield farming (which would turn into 1WBTC), but soon you’ll just have 1BTC wrapped directly from BTC. When you start getting yield farming platforms offering BTC-ONE APRs, how many ONE tokens will have to be purchased and paired with BTC? What happens when you have more than 1 yield farming platform on Harmony and there is competition that comes into the platform?
Harmony vs BSC vs ETH yield farming
Now now, this isn’t going to be a “BSC killer” or “ETH killer”, these platforms can all work together. But, why would I want to pay $0.3 — $2 per transaction on BSC which is Centralized DeFi when I can just use DeFi instead and pay basically nothing? Because of this, in my opinion yield farming DEXes are going to become huge on Harmony. But let’s go on some examples right now.
I went onto 1INCH yesterday. I haven’t been on there since like JAN or FEB. Pools only last like 1 month at a time and I had earned like $100 off of my near $2000 USD investment. How much did it cost me to harvest? $150. Get REKT me. I lost $50 in order to provide 1INCH liquidity, which $2000 is a decent amount of money. I did another pool with about $1500 and lost $75 in order to harvest it! They launched a new 30 day pool, but what can I do? Do I want to double my investment and deposit $4000 in order to make $300 and lose $150 in fees? Well then I can chase in BSC (which I have done in the last month) and now yield farming with BEEFY and AUTO optimizers are super awesome. I made a post yesterday about how I made up to 735% APR on my ETH pairing for my 1 week time frame. My farms are making anywhere from 10%-1000% APR (or higher for the insane risky projects). Super cool awesome. BEEFY/AUTO are yield optimizers based off of YFI (from ETH) and basically the idea is the same… Basically it…
Takes your liquidity pool tokens and issues you back their replacement token.
Groups all the liquidity pool tokens into 1 contract.
Harvests the rewards from the farming pool so you only pay 1 fee for all the deposited money (vs potentially thousands of wallets).
On pairings, let’s say DOT<>BNB pairing on pancakeswap which earns CAKE. It will automatically sell CAKE several times a day and buy more DOT and BNB and redistribute it back to the LP holders. So you actually earn more liquidity pool tokens instead of the native tokens of the DEX. You could do this process yourself, but if you don’t have very much liquidity then you may have to wait weeks to bypass the ~$1 processing fee whereas this will optimize it daily and do several compounds a day.
Now let’s talk about yield optimizers on Harmony. This isn’t a thing yet. I only know of 1 other DEX being in development right now for Harmony which is MOCHISWAP. Are there more? Probably. But let’s say its the summer of 2021 and I am right and DEXes are HOT on Harmony. There are thousands of DEXes on Harmony. Well someone is going to fork off of BEEFY. Someone is going to fork off of YFI directly. Someone is going to fork off of AUTO farms. But what’s the difference?
Power of compounding interest
10% interest compounded yearly = 10% APR
10% interest compounded monthly = 10.4713% APR (4.7% increase)
10% interest compounded daily = 10.5156% APR (5.12% increase)
The little farmer
Okay so cool. So Harmony ONE is faster. It is cheaper. It is decentralized. Compounding hourly or minute or even more is possible which makes yield optimizing even better. Awesome. But… Here is something awesome.
What if I only wanted to buy $1 of a meme coin? Or yield farm with my $1 worth of tokens. That’s not really possible on BSC and it is probably never going to happen on ETH. But, it is possible on Harmony ONE. I have read people say that yield farming is only for the rich. Which is true for ETH yield farming in a lot of aspects. But, you could literally yield farm with $1 on Harmony ONE. You could literally farm in a contract for a matter of HOURS if you want and you aren’t married to that token because you can’t get out of it because of the high fees. This really gives more empowerment to every investor, even the little guys. So, the bottom line, I think this is a huge opportunity to expand the markets for people that don’t have as large of a portfolio to yield farm.
Okay okay enough shilling. What’s some bad stuff?
- Harmony ONE bridge is not the most intuitive.
- Harmony ONE is not very advertised and so if it doesn’t gain enough momentum then the opportunity will be gone.
- https://explorer.harmony.one/ which is kind of like ETHscanner? Kind of? Is very very unintuitive. I do not think the average person will understand their transaction history.
- It is early so a lot of dAPPs aren’t built on Harmony ONE yet and they may never be there if there isn’t enough adoption.
- Harmony ONE really lacks marketing.
- Using METAMASK on Harmony ONE, while is the same as setting up for BSC, is harder to setup right and may slow adoption.
- There is not a lot of good resources out there that clearly explain how to set things up which only compounds the issue.
I am super bullish on HARMONY ONE. I will try to help that last bullet point out a bit by adding some guides on setting up your metamask account properly. And I will try to write a piece on Viper ONE in the near future but… Things are going to get really really busy for me in the next 8 days for a month. So, I am trying to write enough content to keep pushing information out and Harmony ONE isn’t the only project that I want to write about… So… I will do my best! But with that being said, I took the time to write this posting over my BSC DEXes update because I am extremely optimistic about Harmony and I think it should be frontloaded. I will do my best!
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Originally published at https://www.foreverhobbyist.com.