Powerbomb FAQs
Powerbomb is a DeFi yield customizer. Think of Powerbomb as a money robot that makes it easy for you to stack what matters to you.
When you deposit your money on Powerbomb, we help you earn liquidity mining rewards from Decentralized Finance platforms, and allow you to choose what you’d like to receive your rewards as.
For example, if you were a Curve farmer on Avalanche, you’d earn CRV and AVAX rewards. But not everybody wishes to hold liquidity mining reward tokens in that form. For such users, Powerbomb converts those tokens into something you prefer owning, such as bitcoin or ether.
Powerbomb is currently live on Avalanche and Harmony. Access our app with a web wallet like Metamask and select the network you wish to use.
- 1.Users who are new to DeFi and crypto, and want to begin conservatively.
- 2.Stablecoin farmers who want to automate time-consuming farming processes.
- 3.Companies who want an innovative and profitable cash management solution.
Powerbomb currently accepts 4 deposits: 3 stablecoins and 1 LP token.
- 1.USDC
- 2.USDT
- 3.DAI
- 4.Curve’s 3CRV LP token, representing liquidity in the DAI-USDC-USDT pool.
This means you can deposit the 3 popular single asset stablecoins, or if you were already a Curve farmer, you can unstake your LP from Curve and use it here.
More deposit options will be added later on in our development, and will not be limited to stablecoins only. Examples of future deposit options include Sushi’s WBTC-ETH LP, or Curve’s Tricrypto LP.
If you deposit a stablecoin, Powerbomb uses this to assemble a 3CRV LP token. What happens is your single stablecoin is used to acquire the 2 other stablecoins so that you have all 3. Together, these 3 stablecoins are the ingredients that enable you to earn your liquidity mining rewards from Curve.
If you already have 3CRV LP tokens, then you skip the above step in our program.
These 3CRV LP tokens are used to earn rewards for you continuously on Curve
- 1.Bitcoin (as WBTC, an ethereum compatible version of bitcoin)
- 2.Ether
- 3.50:50 blend of bitcoin & ether
More output options will be added later on in our development.
Powerbomb calculates an optimal frequency to harvest and swap your yields. The algorithm considers factors such as gas fees and slippage when making these decisions, and executes these actions as often as it is profitable to do so.
Powerbomb’s job is to make money for you.
Suppose you’ve chosen to earn your yields in WBTC. After harvesting and swapping, Powerbomb goes one step further to deposit your WBTC onto decentralized lending platforms such as Aave, to help you generate additional interest on your yield for effortless compounding.
Powerbomb takes advantage of DeFi, a crypto movement where centralized intermediaries are cut out from transactions that take place between users. To attract users to their platforms, many DeFi startups distribute ownership and control of their businesses to users, in the form of their own incentive tokens. These token rewards are normally lucrative, and the reason your yields outperform traditional financial markets.
Computer code called smart contracts are the foundation of DeFi apps like Powerbomb. These programs are highly experimental, and many have failed, causing hundreds of millions of dollars in losses.
While we cannot guarantee any money deposited on Powerbomb to be safe, we have taken plenty of measures to reduce vulnerabilities where our code can be exploited.
Other risks include events beyond our control, such as market risk, regulatory risk, or risk coming from other DeFi platforms that we depend on.
As far as a formal audit goes, no.
However, the Powerbomb codebase has been personally reviewed by the Harmony team, as well as Sushi's blockchain security researcher Mudit Gupta, who now also serves as Powerbomb's security advisor. We believe their experience is as meaningful and valuable as the findings of smart contract auditing firms, if not more.
Powerbomb’s algorithm automatically calculates an optimal frequency to harvest your rewards, and swaps them into your desired output crypto. Powerbomb takes a 5% fee each time your rewards are harvested and converted, and this is sent to the Powerbomb multi-sig wallet. The other 95% accrues as your income.
Not yet.
Last modified 1yr ago