88mph

Lending

88mph is a fixed-rate yield-generation protocol that lets users earn on fixed yield on crypto assets, as well as speculate on future yields.

Risk Rating
Good
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
88mph allows users to earn a fixed yield and protocol rewards on their deposits.
What we like less
The protocol is exposed to insolvency risks in case its lines of defense are sufficient to cover outstanding debt.
What it means for you
Offers you a great way to earn more reliable fixed interest rates that are not prone to fluctuations from supply and deamnd.
Information
Info
Key Metrics
  • TVL: $583.1K (Rank #197)
  • TVL Ranking by Lending: #40
  • Blockchain: Ethereum, Fantom, Avalanche, Polygon
  • Chain TVL
    • Ethereum: $581.63K
    • Fantom: $1.28K
    • Avalanche: $110.75
    • Polygon: $44.47
Risk Assessment
Good
Protocol Code Quality
  • Code reviewed by several experienced auditors including Trail of Bits and PeckShield
  • Public team promotes accountability
  • One mitigated protocol hack since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 20% by total value locked slightly reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
  • 88mph specializes in fixed rate lending and borrowing
Things to know about 88mph

How 88mph works

88mph is a protocol that offers fixed-rate yield products. It essentially acts as a non-custodial, on-chain intermediary between the user and third-party lending protocols like Compound and Aave. The platform offers additional yield in its native MPH token to incentivize depositors. To ensure solvency, it utilizes yield tokens, which can be used to speculate on variable third-party yields or to hedge the user's own borrowings. Users first deposit their preferred asset with a maturity between 1 day and 365 days. 88mph then tells the user the offered fixed APR, how mcuh the user will have earned at maturity, and how many MPH tokens the user will receive. Once the asset is deposited, it will immediately be deposited in the underlying third-party lending protocols to earn variable yield. The user's yield is represented by a non-fungible token (NFT). 88mph determines a deposit's fixed yield rate based on the 30-day exponential moving average (EMA) of the variable yield rate of the underlying yield protocol.

How 88mph makes money

The protocol extracts a 20% fee from the fixed rate yield generated by the user's deposit. The rate displayed on 88mph is after fees. 88mph also charges an early withdrawal fee of 0.5% on the user's deposit if withdrawn prior to the maturity date. Protocol rewards earned by 88mph are collected and redistributed according to the protocol's revenue distribution. Half of all protocol generated fees are distributed to the governance treasury to acquire protocol-owned liquidity (POL) and as working capital and metagovernance assets.

How you make money on 88mph

You can deposit assets on 88mph to earn a fixed yield rate based on the maturity date. You can also lock MPH and ETH in 80/20 proportion in Balancer to receive veMPH. The maximum locking period is 4 years, while the minimum period is 1 week. veMPH holders are entitled to receve 50% of all protocol fees collected.