Welcome to this post, where we are going to see how MM Optimizer works, the main optimizer in the Cronos network.
MM Optimizer, as its name suggests, is an optimizer, which we will now see what it means and the applications that this type of platform has. It is a platform linked to MM Finance, as you can see from its name. Since it deals with optimising the farms that are on this platform, and not on all those that may be in the Cronos network.
This platform has more than 400 million $ invested in its platform as TVL or total value locked.
What is MM Optimizer
MM Optimizer aims to provide users with the easiest way to join the bandwagon of the DeFi world, built on MM Finance, giving you the tastiest MMFs topped with MMOs. We support the underlying DeFi technology and ecosystem to compound users’ returns across the Cronos network. Have seen a huge increase in DeFi activity in 2020 since the rise of Yield Aggregator projects on different blockchain networks with existing protocols such as MakerDAO, Aave, Compound, and etc. As a Yield Aggregator with a vital role in the farming economy, we are leveraging different DeFi protocols and strategies to maximise the benefits that can be gained by its users.
MM Optimizer, although it started as an optimizer only for the farms and pools that can be found in MM Finance, has been expanding and also allowing other pools and farms from other platforms such as VVS Finance or Pegasus Dollar.
The optimisers, as the name suggests, optimise the farming or stakng of the token that you can see in each vault. They do this by reinvesting the rewards they get on the platform where that farming is. By doing this in an automatic and optimised way, it allows you to get a higher annual % at the end of the year by compounding the rewards you receive.
The main part of the platform is under vault. Here, you can see the type of cryptocurrency you can deposit in each vault, if it is a single token or a LP, followed by the annual % in APY, in earn the cryptocurrency you will receive as a reward, the platform you are using and finally the TVL, which is the total value deposited to that vault.
The most relevant thing is to see the type of cryptocurrency that each vault is, the annual % and the type of reward you receive. Highlighting the MMO vault, where you can receive wCRO, which is wrapped CRO, and is the native token of the network. A very interesting option.
For the other vaults, you will usually receive MMO and MMF in the MM Finance pools, and other tokens in the pegasus and VVS Finance pools.
To deposit, once you have created the LP or bought the cryptocurrency, go to the vault you are interested in and click on it. Here, in stake you can find the annual %, in APY and APR, where you can see a big difference, as APR is what you get without using MM Optimizer and doing compound interest, and APY is doing compound interest after one year. So at the beginning you don’t notice the difference so much, but after a while, you can notice a big difference in annual % by doing compound interest. This is where the difference between APR and APY comes from.
Below, we can indicate the amount, and click first on approve, confirm in our wallet and that’s it. Now we can click on stake once we have indicated the amount, confirm in our wallet and have that cryptocurrency or LP staked.
You can go to unstake to withdraw your cryptocurrencies at any time. Please note that you will not have to claim the rewards, as you do in MM Finance, as they are used to place more cryptocurrencies or LPs in the pool you have deposited. So, when you go to unstake and withdraw your tokens, you will be able to see that there is a larger amount than you put in.
For the moment, MM Optimizer does not have more options, and the other aspects you can find in its main platform, which is MM Finance to exchange tokens, create LP’s or see the different farms and staking pools that it has.
I hope it has helped you to know in more detail how MM Optimizer, the main optimizer of the Cronos network, works. Remember that, if you don’t have an account with binance, you can create one just below.