DeFi Earn: Ferro Protocol

Information on what is a Ferro Protocol and how to start using it

Valter avatar
Written by Valter
Updated over a week ago

What Is Ferro Protocol?

Ferro is a StableSwap Automated Market Maker (AMM) protocol which brings a more efficient way for users to swap and farm tokens. It does this by creating more efficient pools consisting of highly correlated assets, such as stablecoin pools or native-wrapped token pools.

Some of Ferro’s advantages over other DEXes are as follows:

  • Lower fees - Because of lower gas usage and traffic efficiency of the token swap/exchange mechanism versus traditional DEXes

  • Lower slippages - Highly correlated assets reduce price divergence within tokens of the same pool

  • Limited to no impermanent loss - Highly correlated assets reduce overall market exposures of the pools

  • More utilization of pools - Highly correlated assets allow for better utilization, providing opportunities for users to benefit by deploying pools into other DeFi protocols.

The utility that a stable curve pool like Ferro offers will also allow better composability between protocols in Cronos. For example, money market protocols can list their interest-bearing token in Ferro, while any lower liquidity stablecoins bridged from other chains can leverage the Meta Pool setup to bootstrap their liquidity.

In summary, the introduction of Ferro will bring various benefits to the Cronos ecosystem:

  • A more efficient way to access stablecoins and other highly correlated assets with lower fees and slippages

  • Composable pools that provide additional utility to different types of tokens (wrapped tokens, lending tokens, yield-bearing tokens)

How do I deposit into an LP on Ferro?

Step 1: Tap Earn before tapping the Earn More button

Step 2: Select USDC, then choose the Cronos network

Step 3: Select Ferro Protocol and pick a liquidity pool

Step 4: Tap Proceed after reading this disclaimer

Step 5: Tap Swap Now

Step 6: Determine how much USDC you would like to swap to liquidity pool (LP) tokens

Step 7: Tap Confirm Swap when you’re ready

Step 8: The transaction will now be processed

Step 9: Once the LP token swap is complete, your new LP tokens will show up on the Earn page. Remember to stake your LP tokens to complete your deposit. Here’s how.

Step 10: Tap Unstaked LP Tokens

Step 11: Then, tap Complete Deposit Now

Step 12: Tap USDC-USDT-DAI

Step 13: Lastly, tap Confirm Deposit when you’re ready

How do I withdraw From a Ferro LP?

Step 1: In the Earn menu, tap on any token in the Assets section

Step 2: Select Withdraw under “Ferro Protocol”

Step 3: Input the amount of LP tokens that you would like to withdraw

Step 4: Tap Confirm Withdraw when you’re ready. Please note that network fees are charged for these transactions.

Step 5: Wait for the transaction to be completed. Feel free to close this window and check on the transaction’s status in the Earn menu.

Step 6: Your withdrawn LP tokens can be accessed by tapping the Unstaked LP Tokens section

Step 7: You can swiftly re-stake your LP tokens by tapping Complete Deposit Now in the pop-up window. If you would like to make a withdrawal, tap Swap LP Tokens Back instead.

Step 8: Select an LP token to swap. In this case, it would be USDC-USDT-DAI.

Step 9: Tap Swap when you’re ready

Step 10: Select a coin to swap your LP token to. Only USDC is supported for now, but stay tuned for other coins like DAI and USDT.

Step 11: Verify the transaction details before tapping Confirm Swap. Please note that this is irreversible.

Step 12: The transaction will now be processed. Once it is successful, you can check your swapped token balance in the Earn menu.

How do I claim my Ferro Protocol rewards?

Step 1: In the Earn menu, tap on any token in the Assets section

Step 2: Tap Claim Rewards under “Ferro Protocol”

Step 3: Check your reward details before tapping Confirm Claim. Please note that this action is irreversible.

Step 4: Your transaction will then be processed. Once it is successful, your token rewards can be viewed in the DeFi Wallet app’s Wallet tab.

Users should be aware of the risks of possible slashing of staked assets or rewards. The specifics of slashing are defined within each protocol, and is a mechanism built into Proof of Stake blockchain protocols. Although it's unlikely, there is a possibility you may lose your staked assets or rewards in case of a network or validator failure. While we've taken measures to reduce these risks, losses incurred as a result of slashing or other on-chain contract security are outside of our control and we shall not have any liability or be responsible for any damages or liabilities suffered from slashing penalties.

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