Let’s face it, the past couple of weeks have not been easy for anyone who’s invested money in the crypto space. Prices have fallen significantly from their ATH with some continuing to trend ever lower while news of yet another project rugging seem to pop up every other day.
And yet despite the bearish outlook in the crypto space, despite the uncertainties of it all, there are several projects that soldier on, seemingly impervious to market conditions with only one goal in mind — Continuing to build and push out useful new functionalities. It’s these diamonds in the rough that give me hope that nothing has changed in the crypto space besides the price.
The third of ApeSwap’s 10 Commandments — “We’re always buidling”
Today, we’ll take a look at one such project — PolyCrystal.
For those already familiar with the BSC space, PolyCrystal is a new decentralized yield farm running on Polygon that uses ApeSwap as its DEX. Launched at the same time ApeSwap branched out into Polygon, PolyCrystal is one of ApeSwap’s official partners and works closely with two advisors from the ApeSwap founding team — Obie Dobo and Harambe Nakamoto.
Despite being just under a month old, PolyCrystal has amassed over $13m in TVL and secured partnerships with several more established projects that are also looking into bridging over from the BSC to Polygon. Among them are Polyroll, FarmHero, and ApeTools to name a few.
Even more impressive is despite the bearish market sentiments, PolyCrystal has managed to maintain several farms (or “Mines” as they’re called within PolyCrystal) with over 500% APR. They also boast various single staking pools where investors are able to stake $CRYSTL (the PolyCrystal token) to earn non native rewards ranging from major cryptocurrencies like ETH and wBTC to stablecoins like USDC and USDT at over 400% APR. The team have released ambitious plans to have at least 30 pools before the end of July and they seem well on their way to achieve that target!
The CRYSTL token
Like many popular yield farms on the BSC (PancakeSwap, ApeSwap and Pantherswap to name a few), the $CRYSTL token does not have a maximum supply. Unfortunately, this also means that it inherits the same supply inflation problem that currently plagues those same popular yield farms. To combat this, PolyCrystal has implemented a 2-part plan in addition to its current manual crushing (burning) of $CRYSTL:
Dynamic Soft Cap
Instead of declaring a hard cap of X number of tokens like what Bitcoin has done, PolyCrystal is going down the route of using a dynamic soft cap of 10 million tokens. This means that the emission rate of $CRYSTL will change as the total circulating supply of $CRYSTL increases or decreases, down to a low of 0.1 $CRYSTL per block should the circulating supply go over 10M. Coupled with other deflationary mechanisms, this will ensure that supply will rarely (if ever) cross the 10M limit before quickly being brought back down.
Reduction of non-essential farms
Defined as farms that aren’t paired with $MATIC, $CRYSTL or $BANANA, PolyCrystal will gradually reduce the multiplier to 0.1x on all such farms while also disabling further deposits into these farms. This helps reduce both the amount of “non-favorable” liquidity on PolyCrystal and somewhat relieve the selling pressure on $CRYSTL.
While these are certainly steps in the right direction, it is reassuring to see the PolyCrystal team acknowledging the fact that the inflation problem is not so easily solved. They’ve promised to unveil and implement further deflationary mechanics in the future, with the next one being vaults with an auto-burn mechanism. For now, we watch and wait as only time will tell if the team truly manages to keep the supply stable.
Helping Users New to Polygon
If none of the above made any sense because you’ve never heard of the BSC or Polygon, are new to cryptocurrencies in general and need a beginner’s guide on how to get started, fret not since PolyCrystal’s got that covered too!
Having launched alongside ApeSwap, PolyCrystal quickly realized that while the ApeSwap community were old hands in the BSC space, they were fairly lost when attempting to navigate and bridge their assets over to Polygon. It was then that the Crystal Clear Educational Series was born, a guide on all things DeFi aimed at beginners discovering the magical world of DeFi for the first time. If you’re reading this and thinking the above describes you to a T, you can find Part 1 of the series right here.
In fact, PolyCrystal took things one step further and developed their very own MATIC faucet. Just like how cars rely on petrol to function, transactions on the Polygon network rely on MATIC. A faucet is a handy little tool that will give you just that little bit of MATIC for free so beginners can jump right in and get their hands wet.
PolyCrystal’s faucet gives you MATIC for free 🙀
For more information on the faucet, check out the Medium article they wrote here!
It’s often said that the strongest steel is tempered in the hottest of fires. It’s heartening to see that despite the market taking a turn for the worse, PolyCrystal is able to ignore the noise and focus on what’s important — Providing a great product and service for experienced yield farmers and beginners alike.
The crypto markets will do it’s thing and we can only wait for the next bull cycle. Until then, I’m cautiously hopeful and eager to see what the future holds for PolyCrystal.
Signing off for now.
- Website: https://polycrystal.finance/
- Twitter: https://twitter.com/PolyCrystal
- Matic Faucet: https://polycrystal.finance/faucet
- Educational Series: https://polycrystalfinance.medium.com/
- Gitbook: https://polycrystal.gitbook.io/polycrystal-finance/
Note: The views expressed are my own and should not in any way be taken as financial advice.