Tsunami Finance is a DeFi yield farming platform that combines multiple DeFi protocols to maximize returns while minimizing risks for users, built on Aptos. It involves allocating capital to liquidity pools and yielding farming opportunities to generate the highest possible returns.
What is Yield farming?
Yield farming is the practice of lending or staking cryptocurrency on DeFi systems in exchange for interest, governance tokens, or other incentives.
Tsunami finance combines different liquidity pools to maximize rewards while avoiding hazards. Although this technology has hazards since the smart contracts used to establish DeFi protocols can be compromised.
Why Tsunami Finance?
Spot Traders and LPs are underserved in the DeFi world. For example, on several AMMs available in the market today, traders still experience slippage, and while LPs are forced to sell volatility at cheaper rates, use wrong market prices to make trades leading to being arbitraged by others.
For Virtual AMMs, the problem that exists for traders is still slippage and re-pegging. In re-pegging, Uncertain exit liquidity, Uncertain exit price, Slippage. In VAMMs, LPs are not needed.
Another problem Tsunami Finance seeks to solve is that of CLOBs (central limit order books). While CLOBs are good for spot, futures, and options trading, they are very expensive to implement on-chain. And again, like VAMMs, LPs cannot participate in CLOBs.
To solve these problems, Tsunami Finance is being designed as a product that is easy, and fun to use for traders and LPs. With the help of dynamic liquidity pricing, traders and LPs can carry out transactions seamlessly.