88mph Coin Price & Market Data
88mph price today is $34.19 with a 24-hour trading volume of $298,477. MPH price is down -4.1% in the last 24 hours. It has a circulating supply of 370 Thousand MPH coins and a max supply of 392 Thousand. If you are looking to buy or sell 88mph, Bancor Network is currently the most active exchange.
What are 88mph (MPH) tokens?
MPH tokens are created and issued by 88mph, a decentralized yield-aggregating protocol that issues floating-rate bonds.
What is 88mph?
88mph is a decentralized protocol that acts as a yield optimizer for liquidity providers. Liquidity pools in 88mph collect deposited base assets from liquidity providers and deploy them onto lending platforms to earn interest. However, unlike other yield aggregators, 88mph aims to differentiate itself through the introduction of floating-rate bonds.
One of the biggest issues that yield farming pools face is the effects of impermanent loss. Liquidity providers may lose out on value when the market price of their deposited assets is lower than when it was initially deposited. Through floating-rate bonds, 88mph aims to provide better exposure to yield farmers by providing a complementary financial product that mitigates the associated risks of pooling deposits.
How does 88mph work?
88mph acts as an intermediary between liquidity providers and lending protocols. Through adaptors, the 88mph protocol will automatically deploy its liquidity pools to the highest-yielding lending protocol at a given interval. Liquidity providers may supply 88mph’s liquidity pools at any given time which have to be locked for at least 7 days. Assets may be staked for up to a year.
However, because 88mph employs a floating interest rate, if the floating interest rate’s APY drops to a very low value and stays there for a long period, deposits made when the floating interest rate’s APY were still high would be unable to generate sufficient interest to cover the original interest payouts.
In order to mitigate the risk of insolvency, 88mph also offers floating-rate bonds which immediately fills up the debt of one or more of the deposits. In return, the bond-purchaser would receive the yield generated by those deposits. At the time of writing, the yield received by bond-purchasers are 75% of the initial floating interest rate APY.
The idea behind this system is that floating-rate bonds effectively doubles up as both a risk mitigation tool for liquidity providers, and operates as a financial product which allows users to long the interest rates of lending protocols.
How does 88mph 'fix' their interest rates?
At the time of writing, 88mph relies on the Exponential Moving Average (EMA) of the underlying yield protocol's APY (which roughly spans over a month), and offers 75% of the EMA as the fixed rate. Floating-rate bonds act as a supporting tool to guarantee the interest rates by paying lenders in the event the EMA drops significantly.
What can 88mph (MPH) tokens do?
MPH tokens are primarily used as a utility token to gain access to the 88mph rewards pool. By staking MPH tokens, users are able to earn protocol fees and yield-farming rewards (e.g. yield-farmed tokens from linked protocols such as Compound). However, it should be noted that in order to withdraw a deposit, the user will have to pay back a certain amount of MPH tokens (depending on the pool, 30-90% of the initial MPH reward would need to be paid back in order to withdraw).
How to obtain 88mph (MPH) tokens?
MPH tokens can be obtained through three (3) methods.
The first method is buying them from an exchange such as Uniswap. You can browse through the various centralized and decentralized exchanges by heading over to our exchanges page here. Alternatively, you can check out 88mph markets for an overview of the different exchanges MPH is traded on.
The second method is to deposit assets into 88mph's website and earn MPH tokens in return for staking. Liquidity providers will earn MPH tokens at different rates, depending on the size of their liquidity provided, the type of pool they are participating in, and the length of their deposit.
The third method is to purchase floating-rate bonds from 88mph's website. Bond-purchasers will receive MPH tokens when one of the deposits whose debt the bond funded is withdrawn. The amount earned is based on the size of the deposit and the length of time before the deposit matures.