Grim Finance app review

Grim Finance

Grim Finance app review

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Open Dapp

Basic info

  • Token GRIM
  • Audited yes
  • DAO yes
  • Yield farming yes
  • Team private
  • Hacks yes

Audits

Auditors:

Certik Solidity Finance

Certik Solidity Finance

Token profile

Price Market cap.

Yolanta Chomag

Last updated: Nov 23, 2022

What is Grim Finance

Grim Finance is a yield optimizer. Its automated service helps to gain the maximum possible return on crypto-investments. The platform allows users to stake LP tokens received from AMM to Grim Vaults. These vaults then automatically harvest rewards for staking LP tokens and then buy and re-stake LP tokens, thereby achieving a compounding effect.

The platform was launched in May 2021 and is claimed to be a fork of such projects as Beefy Finance and Convex Finance, combining complex strategies and a wide range of Fantom pools.

As early as December 24, 2021, the team announced the launch of the second version of the platform.

How does Grim Finance work

Each vault available on the Grim Finance platform has its own farming strategy. Typically, these strategies consist of reinvesting assets staked in liquidity pools. This is done by collecting rewards from the assets staked into the liquidity pools and then reinvesting the profits back into the liquidity pools. Reinvestment is carried out up to a thousand times a day. Due to liquidity pool rewards being constantly farmed and reinvested, the interest compounds in larger and larger amounts. As a result, the interest earned increases the amount of staked assets, resulting in the exponential growth of the originally invested amount and high APY. 

The Grim Finance platform also features special vaults which interact with the Scream lending protocol. The peculiarity of these vaults is that the staked assets are used as collateral for borrowing assets on Scream. The borrowed tokens are then automatically re-staked into Scream, and once again used as collateral to borrow more tokens. This cycle is repeated multiple times to generate as much interest as possible to buy more of the originally deposited assets. It is noteworthy that this «leveraged» multi lending and multi-borrowing works only with the pool native token, so there is no liquidation risk due to token price swings.

How to use Grim Finance

Grim Finance app can be connected to via any wallet supporting Fantom, for example, MetaMask, Coinbasewallet, Clover Wallet, Wallet Connect, or any other. 

The home page of the Grim Finance app displays the total TVL, GrimEVO, and Fantom rate. There is also a button that displays the user's portfolio. A distinctive feature of the Grim interface is the presence of a menu with a filter that has wide settings.

To start working with the application, the user must select the appropriate storage. This can be a single-asset vault or an LP vault. After the assets are staked, the balance will be displayed in the vault menu, and the user will be credited with receipt tokens, confirming their right to a portion of the tokens in the pool.

Grim Finance fees include 4% charged on profits made in Grim Finance vaults, 2% of which goes to redeem the platform's native token, which is then distributed to GRIM mono-pool stakers; 1% goes to the project treasury; 0.4% is allocated to the pool strategy developer; 0.5% is allocated to the user calling the harvest; 0.1% is allocated to an insurance fund (introduced in GRIM V2). And there is also a withdrawal fee of 0.1% which is distributed among all the stakers of the pool.

The GRIM token

The platform utilizes three tokens GRIM (V1), GRIM EVO and REAPER. 

GRIM (V1) is the first native token. It is deflationary and is used as a reward for liquidity pool (LP) token farmers. The GRIM token staking entitles its owners to share 50% of the commission charged on the platform. The token has a supply of 10 million, 70% of which was distributed during the airdrop, the rest of the tokens went to the ecosystem fund, to promotions and to the developer fund.

The GRIM EVO (V2) token was launched after the platform was upgraded to version 2. It has the same characteristics and purpose as GRIM (V1), however, the token staking allows you to get an xEVO token for the protocol voting in return. This token has a finite issue of 2 million, and 1 million tokens were distributed to users affected by the exploit on December 18, 2021. The platform has a minter that allows the exchange of GRIM (V1) for GRIM EVO at a ratio of 10 to 1.

REAPER is a farm token for farm pools and GameFi projects from the Grim Finance platform. By contributing a REAPER token, the user is able to participate in Grim GameFi. The token has a maximum supply of 100 million, 85% of which is distributed during yield farming. 10% has been allocated to a development fund and 5% was distributed by airdrop to the community.

Staking all of the above tokens in mono-pools will make users eligible for selecting partnering airdrops.

Is Grim Finance safe

Grim Finance team is anonymous.

On December 19, 2021, the platform notified its Twitter account of an exploit in which an attacker stole more than $30 million. After that Grim Finance hack, the team urged all platform users to withdraw their funds, and the next day they announced that they were removing the feature that was exploited and implementing a series of measures to prevent future attacks and compensate the affected users. 

Partners 

Grim Finance partnered with several decentralized cryptocurrency exchanges where the GRIM token can be bought: SpiritSwap, ShibaSwap, SoulSwap, and WakaSwap. The partnership with LiquidDriver Finance and Tomb Finance, an algorithmic stablecoin, was also announced. Grim has a special vault with a Liquid Driver token LQDR and Tomb token TOMB.

What's next

Grim is planning to add some NFT features in the mid-term to increase the value of the protocol. Though there is no official confirmation about the use case of the NFTs, it will be announced on the official channels before the launch.

Links

https://docs.grim.finance/

https://snapshot.org/#/nikar0.eth

 

 

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