Introducing Tinfoil Finance: Making DeFi Yield Compounding Easy and Accessible
Tinfoil Finance’s new platform enables users of all levels of experience and capital to easily and exponentially compound their yield.
Tinfoil Finance provides a method for automating, carrying out, and improving yield compounding via the Binance Smart Chain ecosystem and the PancakeSwap protocol. This vastly simplifies yield aggregating, reduces gas fees, and enables individuals of all ranges of DeFi experience and available capital to benefit from the process.
Tinfoil Finance can be used for a multitude of yield farming purposes, including those seeking maximal yields and those seeking to balance risks and rewards. Thus, we aim to promote additional value and support to the underlying DeFi ecosystem.
The Benefits of Yield Compounding:
Decentralized Finance (DeFi) has revolutionized the financial technology industry, providing users with more ways to invest and generate value than ever before. Yield aggregation in particular is a rising practice, making use of existing DeFi yield-generating protocols as well as prompting the development of additional yield aggregator projects. Also known as yield compounding, yield aggregation enables users to re-invest their garnered interest/yield, to further increase their earnings.
Why Yield Aggregation Needs a Revamp:
As it presently stands, manually yield aggregating can be an arduous task. Not only is it time consuming, but it can be overly complicated, and therefore off putting to those who are not deeply engrossed within the DeFi space. Furthermore, this process can require a lot of gas fees to carry out manually, making it far less cost-efficient than it could be if automated.
How Tinfoil Finance’s Yield Aggregation Protocol is Superior:
How User Flow Works on Tinfoil Finance:
Tinfoil Finance’s protocol is incredibly straightforward on the user end. The steps involved in yield aggregation through our platform simply include:
- Go to our website and connect your crypto wallet.
- Select the farm you wish to invest in.
- Obtain the tokens for the farm you want to invest in (and can do so directly on our platform, or on Uniswap or another similar platform).
- Deposit these tokens in a chosen farm.
- Confirms the transaction.
From there, we will automatically compound your yield.
Your funds will automatically be input into the ideal yield generating structure. Through our farms, the yield will automatically be compounded. When you wish to withdraw, you will also receive this compounded yield. The result is the maximal yield generation in an incredibly user-friendly interface.
Yield Optimization Strategies:
The major advantage of the Binance Smart Chain (BSC) over other yield farming strategies is the lower gas fee. By lowering the cost of participating in this process, the BSC therefore opens up opportunities for individuals with less capital to invest to enter the DeFi space and still generate profits. Tinfoil Finance utilizes this technology to enable users to benefit from yield compounding in an incredibly simple and streamlined manner, making the process accessible to any user, regardless of DeFi experience or available capital. This is facilitated through Tinfoil Finance’s calculations of the optimal compounding frequency for each user, and the subsequent automatic compounding of user tokens via its smart contract infrastructure.
BSC-based yield aggregators like Tinfoil Finance typically utilize PancakeSwap to carry out their function. PancakeSwap (https://pancakeswap.finance/) is the top automated market maker (AMM) and yield farm on the BSC. The farms on our protocol will exist on Pancake Swap, getting the permission of individual users via smart contracts to automatically compound and reinvest their yields.
The initial yield optimization strategies we will incorporate are that of our own token TIN, the TIN LP, CAKE (native to PancakeSwap), BAKE, AUTO, XVS, BUNNY, BIFI, wSOTE, and BURGER pools. We will adapt these and additional pools as needed, continually seeking to generate the most optimal and usefield yield generating strategies. Tinfoil Finance also facilitates yield optimization via farms (discussed in more detail later in this document). Our farms enable users to profit from certain pools on our protocol, and then have those profits automatically compounded in the CAKE compounding pool, resulting in a vastly larger return while still protecting the principal.
Finally, Tinfoil Finance is developing a cross-chain interoperable version, bridging ETH-BSC, enabling more ETH users to participate in our BSC-based yield farming and receive the benefits of our protocol.
Our Farms will exist on PancakeSwap, and enable users to earn additional TIN Tokens. Different vaults/farms require different LP tokens and risk tolerance levels. When APY is higher, there tends to be more volatility in the underlying token market.
Currently, interest is compounded upon all farms except for the TIN staking farm and the TIN/BNB farm. Tinfoil’s smart contracts automatically compound the investments into these pools, augmenting the APY. Further, these pools provide users profits in the form of both the respective LP token for the pool as well as TIN Tokens. At present, users will be able to only claim profits upon exit from the pool, though this could change in the future. The TIN rewards coming from each pool are not compounded.
The range of farms available on our protocol are as follows:
- The TIN Staking Farm
- The CAKE Auto-Compounding Farm
- Additional Auto-Compounding Farms
- TIN LP pool (5 times rewards multiplier)
- TIN pool (3 times rewards multiplier)
- CAKE and AUTO pools (2 times rewards multiplier)
- BAKE, BIFI, AUTO, XVS, BUNNY, wSOTE, and BURGER pools
How the TIN Token Works:
The TIN Token is the native governance token of the Tinfoil Finance protocol. In addition to its governance function, the TIN Token incentivizes platform participation and smooth protocol flow by acting as a rewards token that facilitates increased profits for users.
TIN Token holders are at the helm of our protocol. They also receive the majority of farm performance fee profits. To claim these profits, TIN Token holders stake their TIN in the TIN Governance Pool. A portion of fees are sent to this pool. The amount of profits that users are entitled to depends upon the number of TIN they stake (i.e. the percentage of the pool that they own). Further in the lifetime of the protocol, these governance tokens will also be utilized for voting on key decisions regarding the protocol. This will also depend upon the amount of TIN that users stake, so that the more they stake, the more they are able to influence the Tinfoil Finance ecosystem.
Obtaining the TIN Token:
There are multiple opportunities for users to earn TIN Tokens. These include:
- Farmers can deposit the tokens required for our farms to receive compounded yields.
- TIN buyers can purchase the token at the start of our protocol’s launch. Then, these users can sell later on, in the intention of making a profit. We project that the value of TIN will increase, based on the success of other projects in this space, as well as the fact that, as TIN price increases, TIN issuance will decrease.
- Users can stake TIN long-term for enhanced returns. Again based on other projects in this space, we project that our TIN pool APY will be around 100%, meaning that a user who buys $100 worth of TIN and stakes for a year will earn around $100 worth of BNB. Users can also combine this strategy with selling TIN for additional earnings.
Additional Token Stakings:
Users will be able to stake tokens through our protocol, minting the t version of this token. In other words, they will receive a receipt token in the format t[token staked], such as tUSDT for staking USDT. Users will be able to stake this receipt token for additional returns. This allows for further applications of our platform and unlimited continued staking.
We will also open other receipt token pools as the community shows more interest in these products. Receipt tokens, such as LP tokens, represent participation/investment into a DeFi protocol. However, their utility is low, despite the fact that they are wholly collateralized. Thus, there is a great deal of room for additional use cases, which we seek to add via this function of our platform.
TIN Token Distribution:
The TIN Token supply will be 50,000 tokens. 25,000 of these tokens (50%) will be distributed in the initial 14 days, at a rate of 1,785.71429 tokens per day. They will be distributed to individuals utilizing our 10 pools, along the following distribution:
5% of the 25,000 will be distributed to each of the following pools:
10% of the 25,000 will be distributed to each of the following pools:
20% of the 25,000 will be distributed to the TIN pool.
30% of the 25,000 will be distributed to the TIN LP pool.
Tinfoil Finance is dedicated to making yield aggregation as simple and advantageous as possible. Blockchain and DeFi were generated with the intention of enabling the masses to access and utilize financial tools, helping them better control and grow their assets. By providing an automatic yield aggregating protocol with reduced gas fees and an incredibly straightforward flow, Tinfoil Finance actualizes this vision, making yield compounding an accessible and valuable process for any interested party.
Stay tuned with our progress through our socials: