88mph protocol v4 is a pioneering project in the decentralized finance landscape. The protocol's codebase is publicly available on Github, supported by both the 88mph team and its vibrant community. Comprehensive security audits have been conducted by reputable firms, and a bug bounty program is actively maintained to enhance security.
Overview of 88mph Products
88mph is renowned for its innovative financial products, which include:
- Fixed-Term Fixed-Rate Yield Product: This product serves as a bridge between users and third-party variable yield rate lending protocols such as Compound or Aave. It offers attractive fixed yield rates on capital with customizable maturity options up to one year.
- Yield Tokens (YTs): These tokens allow users to speculate on the fluctuating yields of third-party protocols. By participating in these pools, users earn MPH tokens, which can be converted into veMPH tokens. These tokens not only provide a share of the protocol's revenue but also grant voting rights.
How 88mph Works
To engage with 88mph, users can deposit any amount of assets, choosing a maturity period ranging from 1 to 365 days. The deposits leverage variable APY from third-party protocols until maturity, at which point the fixed yield rate is applied. Upon deposit, users receive an NFT (ERC-721) symbolizing their deposit's ownership and terms. This NFT acts as a secure key to their funds, accessible only through the 88mph platform.
Earning and Withdrawing from 88mph
Participants in the fixed rate pools are rewarded with MPH tokens throughout the deposit period. For instance, depositing 100 DAI for 12 months with an initial fixed yield rate of 10% will result in 10 DAI in yield plus additional MPH tokens at the end of the term. Users can withdraw, add to, or roll over their deposit and its yield at any point.
Fixed Yield Rate Determination
The fixed yield rate for each deposit is calculated using the 30-day exponential moving average (EMA) of the variable yield rates from underlying protocols like Aave or Compound. The percentage of the EMA offered as the fixed yield rate varies between 37.5% and 75%, depending on the deposit's duration.
Flexibility in Managing Deposits
Before a deposit's maturity, partial or full withdrawals can be made, although this forfeits the fixed yield and incurs a 0.5% early withdrawal fee. This fee is distributed to veMPH holders, contributing to the protocol's revenue. Users can also top up their deposits, which merges the new funds with the existing deposit under the same maturity terms, offering cost benefits over creating a new deposit.
Rolling Over and Customizing Deposits
Post-maturity, deposits can be rolled over to create a new deposit with the principal and fixed-rate yield from the original deposit. This option is more cost-effective than starting anew. Additionally, each deposit generates an NFT that can be customized and traded, adding a creative and personal touch to the investment.
The 88mph protocol offers a unique blend of security, flexibility, and profitability in the DeFi space, allowing users to maximize their earnings through strategic financial instruments while enjoying the benefits of decentralized finance.
