Going live on October 6, 2021, now Geist Finance has earned more than $1M revenue a day, with the TVL (Total Value Locked) inside the protocol surpassing $3.5B. This means that the TVL in Geist Finance alone has exceeded that in the whole Solana ecosystem.
How could Geist Finance do that? Is the statistics transparent? We shall find out the answers in this article.
What is Geist Finance?
Geist Finance is a decentralized & non-custodial liquidity market protocol based on Aave - the top 1 lending protocol at the moment. Instead of the traditional Peer-to-peer method, Geist Finance involves both lenders and borrowers in a liquidity pool instead of an intermediary (like banks). Available assets on Geist Finance are Stablecoin, Ethereum, Bitcoin, and Fantom.
Before the advent of Geist Finance, Scream was the most prominent lending protocol on Fantom. Nevertheless, the TVL in Scream has remained at around $160M - not an impressive number in regard to the top 1 spot. Geist Finance came in as a solution for the problem that Fantom has long tried to tackle - the growth of the Lending segment.
What is GEIST Token?
The GEIST token is the center of the Geist Finance ecosystem. GEIST is a revenue sharing token, not a governance token nor a utility token, which means that there is no governance or treasury within the protocol. 50% of the platform fees go directly to GEIST Stakers.
Geist implements a feature by Ellipsis Finance which is that all rewards are vested for 3 months. Users can choose to exit earlier for a 50% penalty (which is distributed to full-time stakers), or claim 100% of the rewards after 3 months.
How does Geist Finance work?
Both lenders and borrowers in Geist Finance are incentivized with GEIST. However, the incentives are split in a 2:1 ratio whereas borrowers take the larger part.
Why? Because borrowers are the key participants to generate revenue for the protocol and hence, develop the project. Therefore, it is understandable that borrowers are receiving more rewards.
Liquidity Providers for the pool GEIST/FTM are also rewarded with GEIST. Initially, only Spookyswap was supported. Over time, Geist Finance will support more AMMs.
This action from Geist Finance means that users are at the moment using Spookyswap to perform liquidity providing and farming. With a large number of users and assets flowing into Geist Finance recently, Spookyswap can benefit from the process by gaining a massive volume.
Additionally, Geist Finance has reserved 20% of its token’s total supply for airdrops. The participants to receive this reward come from the AAVE, Lobster DAO, Curve, and Ellipsis communities, with Aave & stkAave holders being the first to receive. The relationship between these protocols with Geist is still slightly unclear.
A notable point is that, the number of GEIST tokens airdropped to those holders are equal no matter how many Aave or stkAave they held. This approach has proved effective as Geist Finance has received a strong Network Effect from the community, partially contributing to its tremendous growth.
Detailed information about GEIST and DAI
GEIST Price Today
Currently, you can track the price of GEIST on Coin98 Markets.
Coin98 Markets is a website that helps users to get updates of the real-time prices, as well as view the detailed information of a Token Metric from any project. More specifically, you can access the home page or the community page of a project, or filter the coins/tokens by Market Cap, Trading Volume, etc.
GEIST Key Metrics
- Name: Geist Finance.
- Ticker: GEIST.
- Token standard: FRC-20.
- Token type: Revenue sharing.
- Max supply: 1,000,000,000 GEIST.
- Circulating Supply: 6,496,427 GEIST.
- Contract address: 0xd8321aa83fb0a4ecd6348d4577431310a6e0814d.
GEIST Token Allocation
- Incentives for lenders and borrowers: 40%.
- Incentives for GEIST/FTM LPs: 20%.
- Airdrops & Incentives for DeFi communities: 20%.
- Team: 20%.
GEIST Token Sale
GEIST tokens were fair-launched without any token sales.
GEIST Token Release Schedule
- 40% incentives for lenders and borrowers with over 65% of those will be given out in the first year. Incentives start at 1.1 million GEIST per day and reduce every 30 days, ending after 5 years.
- 20% incentives for GEIST/FTM liquidity providers, released over a period of five years.
- 20% allocated for airdrops and incentives to related DeFi communities, happening over a minimum of one year. Airdrops will also be vested.
- 20% to the team, released linearly over one year.
GEIST Token Use Cases
Currently, the GEIST token serves multiple purposes, making it the core element linking every product in Geist Finance. Some key use cases include:
- Staking & locking to receive a portion of the protocol’s revenue.
- Incentives for GEIST/FTM Liquidity Providers.
- Incentives for lenders and borrowers.
- Incentives for other communities in the form of airdrops.
How to get GEIST and DAI Token
You can get GEIST through multiple options:
- DEX: Spookyswap.
- Directly lend or borrow on Geist Finance.
- Stake & lock on Geist Finance.
- Receive airdrops.
How to buy GEIST
How to store GEIST Token
You can store GEIST token on Coin98 Wallet with these steps:
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search Geist Finance Token.
Step 3: Click on the correct result, copy the wallet address and send GEIST to this address.
Geist Finance Roadmap
Team, Investors and Partners
To remain the security of the project, Geist Finance has announced 5 reputational people on the multisig, including:
- Michael Chen (Fantom Foundation).
- Eerie (SpookySwap co-founder).
- 0xngmi (co-founder DefiLlama).
- Aveen Hujiari (co-founder Geist).
- Charlie Watkins (Curve Finance).
These people have no admin rights and are only responsible for ensuring the security of the protocol. If needed, they will start voting on a safety method which will be executed after 3/5 of them agree.
Geist Finance has no investors due to its fair launch.
Is Geist Finance (GEIST) a good investment?
I hope that with the aforementioned information, you have understood what Geist Finance is and how Geist Finance works. This article should give you a deep insight into the project, so there is no financial advice. You should Do Your Own Research before conducting any investment, and be responsible for your own fund. However, Coin98 will provide some notable points of the project to give you the best overview to make your own decisions.
The skyrocketing growth of Geist Finance has not only boosted the whole Fantom ecosystem by doubling the FTM price as well as increasing Fantom’s TVL tremendously, but it has also emerged as a phenomenon that attracts new investors to Fantom.
Although the Market Size of the protocol has reached over $12B after 4 days of launching, its Market Cap is only $52M. This does not indicate that Geist Finance is undervalued at the moment because of the following reasons:
- Most GEIST tokens are currently locked for 3 months, no matter if they come from airdrops or incentive rewards => The token’s circulating supply is strictly limited. However, with an enormous APR at the moment, when those tokens are released, an incredibly massive sell pressure from both stakers and airdrop receivers will be created upon the market (the FDV has surpassed $6.6B).
- The given Market Size is actually not so accurate. Geist Finance allows users to collateralize their assets to deposit a similar one, which can be collateralized again. This can create an infinite loop that possibly leverages up to 5 times their original funds.
- Additionally, it is worth noting that the team receives 20% of the token’s total supply, vesting in 1 year. This indicates that the team has a really short-term vision and may not plan to develop the product for long. If the team and stakers/airdrop receivers both sell tokens after such a short period, a question can be raised: How can GEIST sustain its price?
Nevertheless, Geist Finance has proved one thing that using Stablecoins to earn profits is still the trend of the market. The same case happened to Saber - a protocol allowing Stablecoins’ farming with a really high APR.
In the past, Saber used to be the one that brought the whole Solana ecosystem on top. Will Geist Finance do the same with Fantom, as it is a protocol in the Lending sector - the only DeFi Lego left that needs improving before Fantom can receive more cash flow?