Wormhole #6: GyozaSwap Finance Review

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

A back-to-back Wormhole launch? Yup that’s right! We released PolyUnity Wormholes just yesterday on our beta site, the first ever Wormholes to launch even before the project launches farming.

Only made possible by a majority vote — these folks just wanted to get in early before farming launches!

And now, it’s time for the next project (or investment vehicle) that we’ve selected for Wormholes — and it’s GyozaSwap 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

GyozaSwap is a layer 3 Polygon farm by the same team behind:

  • EbiSwap (L1 Polygon)
  • TamagoSwap (L2 Polygon)
  • IceSlush Finance (L1 Avalanche)

At the time of writing, GyozaSwap (L3) seems similar to TamagoSwap (L2) in terms of product features. It has the standard farming, dividend pool and vault features, but here are a few differences we found:

  1. GyozaSwap will not be using an automated variable emission rate like TamagoSwap, which according to the project, would have worked well had they been able to attract enough native buyers.
  2. Additional burn mechanics: 5% of each newly minted GZA will be automatically burned when the harvest function is called upon. This is meant to reduce circulating supply and mitigate potential sell pressure.

Contracts (at time of writing)

Tokenomics

For the newest layer, GyozaSwap (GZA):

  • Max Supply: 6,000
  • Emission Rate: 0.007 GZA per block (Project has stated that emission rate is tentative and manual variable emission will be adopted for optimal ecosystem balance)
  • Listing price: $26.19

Assuming that emission rate remains constant, max supply will be reached at block 21399071 (~approx 23 days from farming launch).

Price action observations (Polygon)

Based on what we can see:

  • Liquidity providers for L2 native token (TMGO) are still incentivized through the farming of L3 token.
  • L1 and L2 natives are following the standard farm chart and found stable price floors — which means it could be consolidating for an upward movement. Nonetheless, natives are rather volatile, and providing liquidity can result in potential IL.
  • L3 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

RugDoc

The project has a Low Risk rating for its latest layer, GyozaSwap, as well as its other 3 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.

GyozaSwap has also locked its liquidity with RugDoc:

  • 0.001 GZA-USDC LP tokens (~99% at time of update) — Txn Hash: 0x46…d095

Audits

The project has completed 1 audit across its layers for IceSlush Finance (L1 Avalanche) — a Paladin audit. Paladin is one of the leading audit firms in the DeFi space and also a RugDoc recommended audit firm.

Its rationale for not getting more audits is that its contracts are plain Goose forks with just farms/pools. Hence, they had chosen to KYC instead.

Risks

There are 3 risk levels that we’ve assigned to GyozaSwap, 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!

Find GyozaSwap

Website: https://gyozaswap.io/

Docs: https://gyozaswap-io.gitbook.io/gyozaswap-finance/

Twitter: https://twitter.com/GyozaSwapFi

Telegram: https://t.me/gyozaswap

GyozaSwap Wormholes

At the time of writing, we’re seeing some amazing APRs and APYs — we had to display 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!

High Risk Wormholes
Medium Risk Wormholes
Low Risk Wormholes

Wormhole launch

Wormholes are estimated to officially launch within the hour after GyozaSwap launches its GZA farming layer.

This is so that we can verify that the project’s MC used on chain is the same as the one on their UI — a safety precaution as projects switching out their MC is a common type of rug.

We’ll make an announcement on Telegram and Twitter once our GyozaSwap Wormholes are launched — you’ll be able to find them via the below links then:

If you’d like to participate in this batch of Wormholes early (before the project even launches its farm), head to our Telegram to request for the URL to our beta site.

Note that this is high risk, high rewards territory. Although deposit and withdrawal transactions have been tested to work, we’re pending farming launch in order to verify that the MC on chain is minting correctly.

Only recommended for experienced yield farmers!

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