Geist
Geist is a decentralized money market protocol that lets anyone lend and borrow crypto assets on the Fantom network.
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- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: GEIST
- Tags: Lending
- TVL: $4.3K (Rank #252)
- TVL Ranking by Lending: #52
- Blockchain: Fantom
- Chain TVL
- Fantom: $4.27K
- Code reviewed by several experienced auditors including PeckShield and DeFiYield
- Anonymous team reduces transparency
- No documented protocol hacks since launch
- 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
- 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
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.