Wormhole #2: PolyBeta Finance Review

This review is independent and non-sponsored, but as always, we encourage you to DYOR.

It’s been 3 days since the launch of our first batch of Wormholes! Since then, we have:

  • Gathered community feedback
  • Published a Wormholes FAQ article
  • Re-categorized risk ratings
  • Made UI improvements

Today, we’re excited to share the second project (or investment vehicle) that we’ve selected for Wormholes — and it’s PolyBeta Finance!

If you’re new to Wormholes, please read the introductory article and FAQs first.

But as a quick illustration, think of it as you visiting a bank to make some investments. You get recommended investment products based on your risk level / what returns you’re expecting. You invest in one currency, and you earn the returns in that same currency.

Think of us as your “fund manager”, and we review each project before deciding to add it to our Wormholes.

Let’s go!

Project overview

PolyBeta (L3) is by the same team behind PolygonFarm (L1) and PolyAlpha (L2).

Aside from typical farming and dividend pool features, PolyBeta will have:

  • An interesting parallel farming system where PolyBeta will emit emissions concurrently with PolygonFarm (SPADE). Stake SPADE or ALPHA on PolyBeta without incurring deposit fees!
  • Auto-compounding vaults for both its native (BETA) and BETA LPs — which means investors do not need to manually harvest. The former is based on a bounty system where any user can compound BETA for another user, and earn a fee.
  • Its own lottery ticket system — if you’ve bought a winning ticket, you get a prize in BETA

On its roadmap is also a game ecosystem which uses the BETA token.

Recent news

Earlier this week, the project encountered some drama as a result of their developer dumping natives before the launch of L3.

However, PolyBeta has since issued an official statement that while 10% of BETA’s token emissions will sent to the dev wallet,

We will not sell any token from this 10% emission to dev wallet. We may use it for partnership or any other use case for our farm else we will burn all.

Tokenomics

For the newest layer, PolyBeta (BETA):

  • Max Supply: 15,600
  • Emission Rate: 0.0131 BETA per block (~475 newly minted BETA daily)
  • Listing price: $40

Assuming that emission rate remains constant, max supply will be reached at block 20836215 (~approx 27 days at the point of writing).

Price action observations

Based on what we can see:

  • Liquidity providers for L2 and L1 native tokens are still incentivized through the farming of L3 tokens (see Farms and Staking Pools)
  • Moreover, project has also incentivized liquidity providers through farming on L1 (PolygonFarm) — otherwise known as parallel farming
  • L2 and L1 natives are rather volatile, and providing liquidity can result in potential IL
  • L3 native will return to a stable price, it is currently finding a peak. APRs will continue to fall due to profit taking, so get in fast before it’s all gone!

Security & audits

RugDoc

The project has a Low Risk rating for all three of its layers. The project owner has also done a KYC, and you can read more about RugDoc’s KYC process here.

Any malicious actions from the KYC’ed applicant can be prosecuted with legal action, so developers undergoing the KYC process show the first steps towards transparency.

Audits

The project has completed a total of 5 audits across its layers:

Paladin is one of the leading audit firms in the DeFi space and also a RugDoc recommended audit firm. The latest layer, PolyBeta (BETA), has all issues resolved in its Paladin audit.

Risks

There are two risk levels that we’ve assigned to PolyBeta, namely:

  • High Risk: Potential IL risk due to L3 and L2 dumping, try staking with small amounts, then DCA in with larger amounts to make the most of your profits. Our Wormhole contracts also protect you from any large slippage risks with a maximum slippage of 5%. This safeguard will thus cause your transaction to fail, thereby keeping your capital safe.
  • Low Risk: Assigned because of deposit fees (to the specific project, not Timeleap), but you’re likely to earn it back through farming

Standard risks also apply across all Wormholes regardless of project:

  • Project decides to adjust multipliers to encourage liquidity migration to other pools
  • Project decides to change emission rates
  • Insufficient utility for native token may cause native dumping, which affects APR
  • Poor community management resulting in FUD

Please make sure you understand the risks and the associated terminology prior to staking in a Wormhole!

Find PolyBeta

Website: https://polybeta.finance/

Docs: https://polyalpha.gitbook.io/polybeta-finance/

Twitter: https://twitter.com/PolyAlphaFi

Telegram: https://t.me/PolyAlphaFi

PolyBeta Wormholes

APRs / APYs

At the time of writing, we’re seeing some amazing APRs and APYs (we have infinite % and decimals that can’t fit into a card!) on our High Risk Wormholes.

Likewise, the Low Risk Wormholes are still getting some of the sweetest APYs in the market for stables and large caps.

What are you waiting for? Head to the Wormholes and enjoy those juicy APYs!

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