DeFi Strategy Tools Overview

What is DeFi Strategy Tools?

A suite of optimized tools for DeFi strategy formulation, built and supported by Juan Pablo Pisano. Users can gain insights on the hottest tokens based on their recent market performance through the Top 20 DApps TVL by chain report.

Main Features
Impermanent Loss calculations
Staking and farming strategies
CoinGecko and PancakeSwap API queries
Liquidity pools
Other DeFi tools

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Frequently asked questions

To calculate impermanent loss, you need to compare the value of your assets in a liquidity pool with the value they would have had if you had held them outside the pool. Impermanent loss occurs when the value of one asset in the pool increases or decreases significantly compared to the other asset. The formula to calculate impermanent loss is:

Impermanent Loss = 2 * sqrt(price ratio) / (1 + price ratio) - 2

Where the price ratio is the ratio of the current price of the two assets in the pool.

Staking and farming are strategies used in decentralized finance (DeFi) to earn passive income by locking up or providing liquidity to cryptocurrencies. Staking involves holding and locking up a specific cryptocurrency in a wallet or smart contract to support the network's operations and earn rewards. These rewards are typically in the form of additional tokens or fees generated by the network.

Farming, on the other hand, involves providing liquidity to decentralized exchanges or liquidity pools by depositing cryptocurrencies. In return, users receive rewards in the form of additional tokens or fees generated by the trading activity on the platform.

Both staking and farming strategies can be profitable, but they also come with risks. It's important to carefully research and choose the projects or platforms to stake or farm on, considering factors such as the project's credibility, security, and potential returns. Additionally, users should be aware of the potential risks associated with impermanent loss and smart contract vulnerabilities.

To query data from CoinGecko and PancakeSwap APIs, you can use the defi_tools module provided in the GitHub repository. The defi_tools module contains functions to interact with these APIs and retrieve data. For example, to get a list of CoinGecko IDs, you can use the ids function from the defi_tools module.

Liquidity pools are pools of funds that are locked in smart contracts and used to facilitate decentralized trading on blockchain platforms. They work by allowing users to deposit their tokens into the pool and receive liquidity pool tokens in return. These liquidity pool tokens represent the user's share of the pool and can be used to trade or provide liquidity to other users. When a trade is executed, the tokens are swapped within the pool based on the predetermined ratio, and the trading fees are distributed among the liquidity providers based on their share of the pool. Liquidity pools help to ensure that there is sufficient liquidity for trading and enable users to earn passive income by providing liquidity to the pool.

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