$YAMP to launch as the 1st Certified START IDO on Polygon – Yamp Finance, a permissionless crypto lending platform designed to use LP tokens as collateral for automated lending
BRITISH VIRGIN ISLANDS – July 20, 2021 at 8 AM EST – Starter (https://starter.xyz), the first multi-chain community-focused launchpad, today announced the upcoming launch of $YAMP token through an exclusive partnership with Yamp Finance (https://yamp.finance/). Yamp Finance is the first and only automated crypto lending platform designed to use LP tokens as collateral for automated lending across four different blockchains, lowering the risk of impermanent loss and allowing anyone to create a new lending pair for tokens listed on UniSwap, QuickSwap, Serum, and PancakeSwap. Impermanent loss refers to a temporary loss caused to a liquidity provider due to the volatility in a trading pair.
While AMMs provide significant advantages to DeFi investors, there are downsides that come with them such as having to lock assets in LP tokens and risking impermanent loss. All AMM exchanges require liquidity providers to hold locked LP tokens. As a result, there is currently about $7 billion USD locked in LP tokens across AMM exchanges, and liquidity providers often miss out on opportunities to make use of those funds.
For example, investors could be using those funds to borrow tokens to hedge positions, perform arbitrage, earn yields, and manage taxes. Leverage is a popular feature on centralized exchanges like Binance, but is virtually unheard of in DeFi. Lending platforms, however, can also come with a major downside since most platforms currently require borrowers to over-collateralize, making leverage positions extremely risky. With any collateralized DeFi loan, there is a risk that the price of the collateral may drop below the value of the loan. When this happens, the collateral is liquidated to repay the lender.
Yamp Finance offers a model that minimizes financial risk to the borrower’s collateral, allowing leverage of 10x or higher on borrowed positions, while also eliminating any risk of default for the lender. Liquidity providers can borrow a token using their LP tokens backed by that same token for collateral. This creates a better liquidation threshold since the value of the LP tokens will match the value of the borrowed assets. Lenders can offer crypto loans and earn yields with their LP tokens at no risk of impermanent loss or loan default.
$YAMP is a fixed-supply governance token with a total supply of 70 million tokens. Users will be able to earn passive income by collecting 80% of the interest generated in the lending platform. The remaining 20% of the interest will be used to market-buy and burn $YAMP.
Yamp Finance is a part of Starter’s highly sought-after Certified START IDOs, which are hand-picked by the Starter team and presented exclusively to the Starter community. Starter has successfully launched various blockchain projects including Cake Monster (MONSTA), Wall Street Bets (WSB), WISE Token (WISE), FOMO Labs (FOMO) and Bakery Tools (TBAKE), with some selling out in the first seconds or minutes.
Starter (https://starter.xyz) is a multi-chain community-driven launchpad, supporting interoperability of IDO launches on 7 blockchains (Binance Smart Chain, Ethereum, Cardano, Solana, Polygon, Fantom, and Avalanche) and providing projects access to funding opportunities without the hassle of bureaucratic hurdles, complex KYC requirements and a manual selection process. Starter consists of four separate branches: venture arm Starter.capital, decentralized launchpad Starter.xyz, decentralized exchange StarterSwap.xyz, and token vesting and liquidity locking StartVesting.xyz.
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About Yamp Finance
Yamp Finance (https://yamp.finance/) is an automated crypto lending platform for users of Polygon, Binance Smart Chain, Ethereum, and Solana. Proving the first-of-its-kind benefits to both lenders and borrowers, it is the first and only platform designed to use LP tokens as collateral for automated lending across four different blockchains. This virtually eliminates the risk of impermanent loss to liquidity providers. Borrowers can benefit by taking advantage of Yamp’s 10x or higher leverage across four blockchains on borrowed positions with much lower liquidation risk.
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