Geist

Lending

Geist is a decentralized money market protocol that lets anyone lend and borrow crypto assets on the Fantom network.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Geist innovated upon the Aave protocol with a revenue sharing token that distributes half of all platform revenue directly back to its users and token holders.
What we like less
The team is anonymous and has significant control over the platform via the ability to upgrade contracts. Geist also has no plans to decentralize the protocol through governance.
What it means for you
Geist is the top money market platform on Fantom for you to borrow and lend assets with lower gas fees, as well as partake in the revenue generation of the platform through its own token.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: GEIST
  • Tags: Lending
Key Metrics
  • TVL: $104.3K (Rank #215)
  • TVL Ranking by Lending: #44
  • Blockchain: Fantom
  • Chain TVL
    • Fantom: $104.29K
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by several experienced auditors including PeckShield and DeFiYield
  • Anonymous team reduces transparency
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • At least one critical governance issue documented
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
  • Basic controls in place to prevent risky borrowing
  • Solid mechanisms in place to ensure healthy liquidations
  • No reserves or no stability module
  • Geist is a Aave fork implemented on the Fantom chain
Things to know about Geist

How Geist works

Geist consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. Geist borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on Geist are driven by market supply and demand. To facilitate this activity, Geist issues gTokens to lenders that reflect accruing interest on the underlying token. The GEIST is a revenue sharing token with no governance powers. The platform distributes 50% of all platform fees directly to GEIST stakers. All rewards are vested for three months after which they can claim 100% of the rewards. Users also have the option to exit earlier (at any time) for a 50% penalty which is then distributed back to full-time stakers.

How Geist makes money

Geist does not have a protocol treasury. It owns the GEIST-FTM liquidity pool (LP) token but does not stake it so as not to dilute current LP staking rewards. Geist uses the Protocol Owned DEX Liquidity (PODL) module to buy LP tokens using 50% of Geist's FTM rewards. So 25% of FTM borrow fees are collected and sent to a protocol-controlled FTM pool. Users have the option to purchase GEIST-FTM LP tokens and selling it to the protocol at a 10% premium in exchange for FTM. All protocol owned GEIST-FTM LP tokens are locked forever to ensure a healthy balance of liquidity.

How you make money on Geist

You can generate yield by staking GEIST tokens on the platform to earn 50% of all lending fees. GEIST stakers earn protocol fees, while GEIST lockers (who committ to the three month vest) also receive 50% of exit penalties from users who exit their vests early. Users earn lending fees on Geist by depositing their idle crypto assets to be used by borrowers looking for leverage. Geist offers additional protocol incentives in its own token to bootstrap demand.