You, Me and the Granary

If you are unfamiliar with AAVE or crypto money markets in general I recommend you read this first: DeFi Lending Protocols. If you want to learn even more including a couple basic strategies check out this: The Long and Short of Lending. If you’re still hungry for more or need something more comprehensive check out Jesse’s piece on Learn.

Introduction

We Byte Masons love the Granary. It provides a simple, cute, accessible UI with the battle-tested AAVE code base under the hood. We fully believe the Granary is the best money market on Fantom, and with cross-chain on the horizon, potentially the best in all of DeFi. 

I’ll walk you through the current state of the protocol but this is not a protocol overview. Think of this as more of a product overview considering…

Our Involvement

Our relationship with Granary runs deep. We recognized the value of their project and the team early on and offered to help.

Bebis and the security team have been working with the Granary’s lead developer, Fantom Menace, to ensure the project is technically and operationally secure. The Crow and CryptoJockey crafted the charming front end. So we’ve been collaborating pretty significantly!

Our partnership has been so successful Fantom Menace has decided to ‘take the oath’ and join the Byte Masons himself. Judging by his work on the Granary we are ecstatic to have him on our team. 

This all means you can expect the Granary to be as safe, user-conscious and useful as any other Byte Mason project. 

While a lot of details surrounding tokenomics and governance are still being ironed out I’ll walk you through the…

Fundamentals

The Granary is a clean fork of AAVE, a well established ethereum lending protocol. The primary differences in the actual contracts are limited to some simple math and fee adjustments. The result is a set of contracts just as secure but optimized for stablecoin yield.

What this means for you is it operates exactly like other money markets you may have seen but with greater returns. Deposit an asset; borrow an asset. 

APYs are variable for both borrowers and depositors so it is vital you monitor the health of your loan. 

Loan to value ratios are much more favorable on Granary than its competitors. For example, on Geist if you deposit 1000 DAI you can only borrow up to 750 DAI. But on Granary, depositing 1000 DAI lets you borrow 800 DAI. 

 

Fees are also lower on Granary which means lower interest rates for borrowers. The protocol’s cut of the fees is also substantially lower, resulting in greater returns on deposits. The Granary is simply more favorable for the average user all around.

I encourage you to check for yourself! Always DYOR!!

On launch the TVL exploded as bi-weekly snapshots were announced. These are undisclosed so you can’t game them! You must be actively using the protocol up to the launch of revenue sharing to qualify for the airdrop. Borrowers will receive a greater share of the airdrop. While users may come for the airdrop they’ll stick around for the rates.

More information surrounding tokenomics of GRAIN is expected to be unveiled over the coming weeks as they continue their soft launch on Fantom. Be ready as they plan to expand to other chains swiftly thereafter.

Conclusion

If you like the Byte Masons you’ll like Granary. If you hate the Byte Masons  >:[  but like favorable interest rates, you’ll like the Granary. If you can prove me wrong, I’d love to hear it. Drop me a message in the type form below!