Tranquil.Finance: Harmony’s Money Market Protocol

From UNI and SUSHI on Ethereum to BANANAs and CAKEs on BSC, there are innumerable DeFi tokens in the crypto space. DeFi applications range from NFT games to yield farms and their aggregators, lending/borrowing platforms and so much more. There are just so many Dapps and blockchains that it’s difficult to stand out among them.

But the new kid on the block, Tranquil.Finance, has captured investor interest and is poised to grow by leaps and bounds. If you are among the early birds that catch the worms, then this one's for you!

Here’s everything you need to know to get started with Tranquil. This lending and borrowing platform also offers some great staking options with high APRs.

Make sure to do your own research and if you are convinced, then being among the early investors of this platform can surely help you reap your rewards big time.

Tranquil and Harmony

The battle of the blockchains was focused on the giants in the game, with Ethereum taking the lead and the Binance Smart Chain following right behind. But now, the arena is overrun with new players and the scenario is quite confusing for most people. From Solana, Cardano, and Cosmos to Algorand, Avalanche, and Polkadot, the names on the leaderboards are switching so fast, it’s hard to keep track.

But one force to reckon with, among these blockchains, is Harmony! Rather than competing against other blockchains, this project aims at creating harmony between the different players. This project actually focuses on improving the scalability between different blockchains.

Harmony uses cross-sharded contracts and cross-chain infrastructure to connect various blockchains such as Bitcoin, Ethereum, BSC, and Polkadot.

Harmony has partnerships with major DeFi platforms such as Aave and Curve. This has helped increase the popularity and user base of Harmony as it offers much lower transaction fees for these Ethereum-based protocols.

After hitting a low of $0.095 in August 2021, Harmony’s native token ONE spiked 263% to a new record high of $0.345 on 25th October 2021. The 24-hours trading volume surged to over $800 million!

What is Tranquil?

What Harmony needs now is a successful money market protocol to drive liquidity into its ecosystem. A reliable lending/borrowing Dapp is a vital part of any DeFi network. All the apps on the network will benefit from the increased liquidity in their ecosystem. For example, take Compound on Ethereum or the Venus protocol on the BSC blockchain.

This is where Tranquil makes its entry. This algorithmic money market protocol is modeled on the Compound protocol of the Ethereum network.

Although Compound is a highly efficient protocol, its high gas fee made it unusable for many users. Considering that it’s built on the Harmony blockchain, Tranquil offers you the same services at not just much cheaper rates, but faster transactions as well.

As a DeFi protocol, Tranquil offers a completely permissionless and decentralized way to supply and borrow assets while receiving or paying interest. While loans are over-collateralized to ensure solvency, market demand determines the borrowing and lending interest.

As mentioned before, Tranquil has many strategic partnerships with major protocols such as Aave and Curve. But the advantage Tranquil has over these multi-chain protocols is that Tranquil was created specifically for the Harmony ecosystem. This gives Tranquil a definite edge in becoming the premier lending and borrowing platform on Harmony.

Depending on the fast and cheap transaction cost of the Harmony blockchain, the developers behind Tranquil reveal that their vision is to become a decentralized FTX. Their proposals include:

• Tranquil plans to introduce long-tail tokens that are unique to Harmony.
• stONE, a staking derivative token, will reward stakers with ONE tokens while also using it as collateral on Tranquil.
• stONE can be used in other DeFi protocols by its holders.
• stONE can be exchanged back to ONE without long undelegation times.
• All the features on Tranquil will have a unified collateral model and borrow from the same asset markets.
• Tranquil aims to empower undercollateralized use cases such as leveraged trading, options, and perpetual swaps.

The TRANQ Token

TRANQ is the native token of Tranquil Finance. To buy TRANQ, head over to SushiSwap. It can be traded through TRANQ/ONE pair.

If you stake TRANQ tokens, you are entitled to receive 75% of the fees generated by the smart contract.

How to Connect Wallet and Start Using Tranquil.Finance

1. To start using this platform, head over to the website tranquil.finance.

2. Click on the ‘Launch app; button.

3. You will now be asked to connect your wallet. Metamask, Math Wallet, and Trust Wallet are the only three options currently. You can expect more options to be added later.

4. If your wallet network is not configured for Harmony, then you will get the following notification as you attempt to connect your wallet.

5. To switch to the Harmony ONE network, follow the steps outlined below.

How to Set Harmony ONE Network on MetaMask

Log into your MetaMask account. You must definitely create a new MetaMask account if you don’t have one yet!

Read more: The Beginner’s Guide to Downloading and Installing MetaMask Wallet

1. To add Harmony to your list of networks on the MetaMask wallet, click on the dropdown button for networks. In the image below, the network is set to Smart Chain.

2. Click on ‘Custom RPC’ at the end of the drop-down list of networks.

I recommend expanding the view of your MetaMask wallet to full webpage size as you fill in the details of the new network, otherwise what you enter may keep vanishing if you switch to another tab to check the details that need to be entered.

For Harmony ONE mainnet, fill in the following details and then click on the ‘Save’ button.

• Network name: Harmony Mainnet
• New RPC URL: https://api.harmony.one
• Chain ID: 1666600000
• Currency Symbol: ONE
• Block Explorer URL: https://explorer.harmony.one/

As you can see in the image below, the network of the wallet has now changed to Harmony Mainnet.

Now you can connect your Matamask wallet to tranquil.finance with the network set correctly to Harmony.

The user interface of Tranquil is well designed and user-friendly. There is no clutter. In the clean black and white background, the three menu options given are the

• Markets - where you can lend/borrow
• Dashboard for tracking your balance, APY, and rewards
• TRANQ - for staking your TRANQ, xTRANQ, and TRANQ-ONE LP tokens

Let’s check them out one by one.

Markets: How to Supply and Borrow on Tranquil

Tranquil is primarily a lending and borrowing platform.

Supply Markets: To be a lender, you can deposit your assets in the supply markets. Click on the asset - ONE, WBTC, ETH, USDC, and USDT are the only options currently available. We can expect more tokens to be added as the platform grows.

For example, let’s choose the supply market for ONE.

Enter the amount you want to supply and then click on the ‘deposit’ button. That’s it! You are officially a lender and you will earn interest in terms of TRANQ rewards.

Borrow Markets: To borrow on this platform, you first need to deposit collateral.

Staking xTRANQ

Before a proper TRANQ staking mechanism for distributing dividends was available, investors had the option to lock their TRANQ tokens into xTRANQ and then stake them. These cannot be un-staked until the full 155 days of lock-in period is completed. 

Staking TRANQ

With a high APR of 203.52%. TRANQ staking is quite an attractive prospect. Considering that you can stake your TRANQ tokens directly in the TRANQ pool, you don’t have to worry about any impermanent loss. You can harvest TRANQ tokens and stake them again to manually compound your investment.

SushiSwap Liquidity Incentives

Here we have a staking pool for TRANQ-ONE LP tokens with an APR of 363.22%! You have to go to SushiSwap to create these LP tokens. TRANQ will not be displayed as a default token on SushiSwap, so there is no point in searching for it there. You have to import the TRANQ token first.

To create LP tokens, you need to add equal values of TRANQ and ONE tokens to the liquidity pools on SushiSwap. In return, you will get the corresponding amount of TRANQ-ONE in your wallet. These LP tokens can now be staked in the pool shown below. The TRANQ rewards from this pool can be claimed and staked again in the TRANQ pool mentioned earlier. This enables you to reap multiple yields on the same investment capital.

3. Tranquil Dashboard

Your deposit balance, borrow balance, net APY, and rewards can all be seen on your Dashboard.

How Safe is Tranquil Finance?

As of early October 2021, the Tranquil protocol is yet to be audited. But considering that it is forked, with minimal changes, from the heavily battle-tested Compound protocol, you can rest assured that this is no scam.

Do your own research before investing your hard-earned money. Keep an eye out for the audits being done and check those results before increasing your investments into Tranquil Finance.

Before You Go...

You can use the tranquil website to launch the app on your computer or tablet. Tranquil Finance is also available for use as a mobile application.

Considering the older players in the blockchain game, such as Ethereum or even the Binance Smart Chain, Harmony is a toddler.

As Harmony grows into a powerful contender in this battle of blockchains, we can expect Tranquil to grow along, from its current primitive offerings to the best money market in the DeFi ecosystems. So hop on early to get the most out of its upward ride!