This review is independent and non-sponsored, but as always, we encourage you to DYOR.
It’s time for the next project (or investment vehicle) that we’ve selected for Wormholes — and it’s Destruction, by Sandman 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.
Destruction is a layer 4 farm by Sandman Finance, the same team behind Delirium and Despair. Despair is a project that we’ve reviewed and Wormhole-ed previously.
Most features for L4 are similar to Despair, but the key difference about this layer is its anti-bot system, which will guard initial liquidity from bots and create a fairer launch. The system checks for the following criteria:
- No transaction should be higher than the max threshold: 3% of Initial Liquidity Amount, ~1.5 Destruction. If this condition is triggered, the transaction will fail.
- No wallet balance should be higher than the max threshold: 9% of Initial Liquidity Amount, ~ 4.5 Destruction. If this condition is triggered, the address will be automatically blacklisted.
- The current wallet should not already be blacklisted. If this condition is triggered, the transaction will fail.
Contracts (at time of writing)
For the newest layer, Destruction:
- Max Supply: 5,000
- Emission Rate: 0.007833174603 DESTRUCTION per block
- Listing price: $50
Assuming that emission rate remains constant, max supply will be reached at block 22004938 (approx 14~16 days from farming launch).
Price action observations
Based on what we can see:
- Liquidity providers for L1, L2 and L3 native tokens are NOT incentivized through the farming of L4 token. Although single stakers for past layer natives may still farm the L4 token, the lack of liquidity providing for previous layers may result in volatile price action for L1 to L3 natives.
- L4 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 all 4 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.
The project has completed a total of 4 audits across its layers:
- Sandman: Paladin audit
- Delirium: Paladin audit
- Despair: Audit SC
- Destruction: Audit SC. The team has stated that they did a KYCT (Know your crypto team) with Audit SC.
Paladin is one of the leading audit firms in the DeFi space and also a RugDoc recommended audit firm.
The project has developed its own liquidity locker contract and is not looking to lock liquidity with another platform.
There are 3 risk levels that we’ve assigned to Destruction, 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 those APYs as Infinity % 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!
Wormholes have officially launched on the Timeleap website, BEFORE Sandman launches its DESTRUCTION farming layer.
You’ll be able to find our Wormholes via the below links :
- High risk: https://timeleap.finance/wormhole-risk-high
- Medium risk: https://timeleap.finance/wormhole-risk-medium
- Low risk: https://timeleap.finance/wormhole-risk-low
We’ve tested deposits and withdrawals and all is working normally. But do note that Destruction wormholes will only start printing AFTER the farm has started minting.
All information in this review is accurate at the time of writing.