One of the most striking tools in the DeFi sector is Furucombo, a decentralized application whose purpose is to facilitate the creation of interaction "combos" between different DeFi platforms, both on Ethereum and Polygon.
EThis in order to take advantage of all the financial potential of DeFi and at the same time offering an easy-to-use interface for new users of the ecosystem.
In fact, Furucombo allows you to create these "combos" by means of a simple "drag and drop", stacking blocks with certain characteristics and functions. Thus, a user can configure actions to make an exchange in Uniswap, then use the tokens in the AAVE pools, request a flash loan in said platform and finally withdraw the profits in Curve, all with a simple interface and stacking the blocks that you need to do all this.
Furucombo was introduced in 2020 by Hsuan Ting Chu, CEO of Furucombo, and since then, this application has become one of the most used within the crypto ecosystem.
Modes of use of Furucombo
Furucombo offers its users three modes of use, each with its own capabilities and tools.
Investment mode or Furucombo Invest
Furucombo's investment mode (Furucombo Invest), is one of Furucombo's functions and offers a simple and intuitive interface so that novice users can take advantage of it. The purpose of the investment mode is to allow users to profit from yield farming and liquidity mining/liquidity pools.
To participate in this mode you just have to select the chosen token/pool and enter the desired amount to participate in it. Being a decentralized system, all your funds are managed by Furucombo's smart contracts, allowing you to deposit and withdraw your tokens whenever you want, without paying commissions to the protocol for it (you must pay only the mining commissions).
Furucombo Invest also allows users to self-compensate their rewards with our Auto-Farming pools. This means that any yield farming reward token allows for more APY through compounding effects. This is a very strong mechanism to grow your funds and earn more rewards in DeFi.
In addition, the Furucombo staking contract also allows you to earn multiple reward tokens. This allows you to obtain high rates of return depending on the tokens of the pool/farm in which you participate and the delivery of compound rewards. Although, this only applies to Furucombo self-investment farms.
Creation mode or Furucombo Create
The creation mode or Furucombo Create, allows us to visualize and interact with DeFi protocols using cubes. These cubes can be stacked to create powerful smart contracts that allow us to perform operations on the protocols that are supported by Furucombo.
In this way, users can configure the inputs/outputs and the order of the cubes, then Furucombo bundles all the cubes into a single transaction and sends it. We call this configuration of building blocks “combo”.
For example, if we want to make a trade from COMP to USDT, and use these USDT within Curve to add them to its liquidity pool, it is enough to choose the cubes:
- Uniswap Swap Token
- "Add Liquidity" by Curve
With these two cubes chosen, you only have to indicate the amount of COMP tokens you want to change and Furucombo will take care of carrying out the entire desired procedure in a single operation.
In this way, users can configure the inputs/outputs and the order of the cubes, then Furucombo bundles all the cubes into a single transaction and sends it. We call this configuration of building blocks “combo”.
For example, if we want to make a trade from COMP to USDT, and use these USDT within Curve to add them to its liquidity pool, it is enough to choose the cubes:
- Uniswap Swap Token
- "Add Liquidity" by Curve
With these two chosen cubes, you only have to indicate the amount of COMP tokens you want to change and Furucombo will take care of carrying out the entire desired procedure in a single operation.
In this way, you not only carry out your operation in one place, but you maintain decentralization and you will also receive the necessary rewards in the protocols you participate in, according to their own rules. Thus, you make sure you continue to enjoy all the benefits that DeFi offers its users.
Learning mode or Furucombo Learn
The learning mode, or Furucombo Learn, serves as a clearinghouse for DeFi strategies. This section allows you to discover the most used combos within Furucombo, as well as the combos that have been created by other users (or by yourself) so that you can use them on your own. Clicking on a strategy will bring you to a page explaining the purpose of the strategy and how this cube strategy is made up.
Another feature of this section is that they also include the filtering of strategies by popular tags and the display of relevant information such as APY, liquidity and rewards. With these features, users can find their combo more easily.
Furucombo Tokenomics
Furucombo has evolved a lot over time and part of that evolution can be seen in the creation of the COMBO token, which was made public with the launch of Furucombo V2. The COMBO token aims to enable the sustainability and governance of Furucombo. As a utility token, COMBO seeks to incentivize its holders to participate in the application and maintain its healthy operation and development.
Among the specifications of the COMBO token we have:
- Token address: 0xffffffff2ba8f66d4e51811c5190992176930278
- Total Issue: $100.000.000 COMBO
- Standard: ERC-20
- Type: Utility Token
- Features: Governance, enjoy premium features and economic incentives.
Part of the tokenomic sustainability that COMBO will bring to Furucombo is in keeping Furucombo a free-to-use application. Performing operations on Furucombo does not require the payment of any commission except for the mining commission, which makes Furucombo one of the few DeFi platforms that are free to use. In this sense, COMBO will be a means by which the team will be able to maintain this system and at the same time:
- Offer the community access to higher yield rewards using the COMBO token.
- Commission rebates received from protocols such as Aave partnerships, Synthetix volume program, etc.
- Participation in governance
The latter allows:
- List the integration of new cubes;
- Delete the current cubes;
- dictate the new associations;
- Distribute more tokens reserved for the community;
- Grants awarded to combo creators, developers, etc.
In short, Furucombo is owned and shared by COMBO holders, and the lead development team will ensure that the transition of ownership is smooth and consistent in the coming months.
Finally, the supply of COMBO tokens will be distributed following the data shown in the following image:
Furucombo Loyalty Program
On June 6, 2022, Furucombo presented the Loyalty Program to the community, which is nothing more than a series of rewards for users who use and support the protocol. The system has as main characteristics:
- A point system that is divided into rounds
- Accumulated points expire at the end of each round
- The first round will last 3 months
To earn points all you have to do is use Furucombo. From creating or investing, anything you do in Furucombo will allow you to accumulate points that you can then exchange for protocol rewards. For example, users can earn 20 points per week for every $1000 they stake on an auto-invest farm. Of course, every time you increase your participation, it will earn you more points.
Another way to earn in this program comes from the Furucombo NFTs. These NFTs allow each user to have one of each of the loyalty cubes (wood, metal, and diamond). Additional NFTs can be redeemed for points. Previously minted NFTs will also be redeemable for points according to the following schedule. Anyone who has these NFTs can request points to be added to their account based on the NFTs they hold. It will not be necessary to burn your NFTs, and they will remain your property, as we do not want users to lose their moments.
Of course, these NFTs also have utility within Furucombo, highlighting:
wooden bucket
- 1,1x multiplier on points earned
- 1500 points are needed to mint
metal bucket
- 1,1x multiplier on points earned
- Loyalty airdrops (in tokens or in NFTs)
- 3000 points + 1 wooden cube needed to mint
diamond cube
- 1,1x multiplier on points earned
- Loyalty airdrops (in tokens or in NFTs)
- Exclusive high yield yield option
- Invitations to live events
- VIP support and unique role in Discord
- Furucombo Loot Pack
Furucombo Security
Furucombo is a very secure protocol, however you should pay close attention to how its combos work, especially the combos that are listed in the Learn section. Reading and knowing what each combo does ensures you don't face any unexpected surprises. For example, if you stake within Uniswap and face an impermanent loss, you should know that this is within Uniswap's possibilities, and that it is not due to Furucombo as such.
On the other hand, Furucombo has faced security issues and has improved a lot in this aspect. The 2021 attack led them to improve their care with the interaction of smart contracts and at the same time create security measures to prevent it from happening again. At that time, an "evil contract" managed to subtract 14 million dollars from the protocol, a situation that has not been repeated, making it clear that his team works to offer the best security to all its users.
How much do you know, cryptonuta?
Does Furucombo facilitate the interaction between different DeFi platforms?TRUE!
Furucombo is a decentralized application that aims to facilitate the creation of a kind of interaction combos between different DeFi platforms.