Wormhole #3: PolySage Finance Review
This review is independent and non-sponsored, but as always, we encourage you to DYOR.
We’re excited to share the next project (or investment vehicle) that we’ve selected for Wormholes — and it’s PolySage Finance!
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.
PolySage (L2) is by the same team behind PolyWise (L1). L1 farming was launched about 3 weeks ago on Sep 20th, and the project has intentionally decided to launch L2 right before L1 farming is completed.
According the project’s developers, this is to ensure that WISE holders are not left hanging while waiting for L2 to launch.
Aside from typical farming and dividend pool features, PolySage will have auto-compounding for its native token — which means investors do not need to manually harvest. This is based on a bounty system where any user can compound SAGE for another user, and earn a fee.
Such auto-compounding is common for newer farms, but PolySage has a policy as follows:
- 0.1% un-staking fee if stake is withdrawn before 72 hours
- 72 hour timer is reset if one adds more SAGE to the pool
- Any accumulated un-staking fee will be burned
On PolySage’s roadmap is also a Vault application with Beefy and a new L3.
For the newest layer, PolySage (SAGE):
- Max Supply: 4,800
- Emission Rate: 0.007 SAGE per block
- Listing price: $50
Assuming that emission rate remains constant, max supply will be reached at block 20582400 (~approx 18 days from farming launch).
Price action observations
Based on what we can see:
- Liquidity providers for L1 native token are still incentivized through the farming of L2 token.
- L1 native is following the standard farm chart and found a stable price floor — which means it could be consolidating for an upward movement. Nonetheless, natives are rather volatile, and providing liquidity can result in potential IL.
- L2 native will return to a stable price after ATH. APRs will continue to fall due to profit taking, so get in fast before it’s all gone!
Security & audits
The project has a Low Risk rating for both 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.
PolySage has also locked its liquidity with RugDoc:
- 31.19 SAGE-WMATIC LP (100% at time of review) — Txn Hash: 0xdc80…42494
- 0.00035355 SAGE-USDC LP (96% at time of review) — Txn Hash: 0x2335a…ad792
The project has completed a total of 2 audits across its layers:
Paladin is one of the leading audit firms in the DeFi space and also a RugDoc recommended audit firm.
There are 3 risk levels that we’ve assigned to PolySage, namely:
- High Risk: Potential IL due to the project’s earlier layers dumping. If there’s low liquidity for the earlier layer, we recommend 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.
- Medium Risk: Potential IL is possible but less of a concern. For instance, let’s take a WMATIC-USDC LP. A chain native like WMATIC is naturally more stable than a farm’s native token. In fact, chain natives typically follow the movements of large caps — when paired with a stable, we can expect the LP token price to be less volatile as compared to single staking of the chain native. There are also deposit fees (to the specific project, not Timeleap) but you’re likely to earn it back through farming.
- Low Risk: Assigned because of deposit fees (to the specific project, not Timeleap), but once again, 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!
At the time of writing, we’re seeing some amazing APRs and APYs — we had to display some of those APYs as such because there’s no way we could fit all the numbers into the card UI 😂
Even the Low Risk Wormholes are getting some of the sweetest APYs in the market for stables and large caps!
Head over to the PolySage Wormholes and enjoy those juicy APYs!