Furucombo Coin Price & Market Data
Furucombo price today is $0.243075 with a 24-hour trading volume of $760,199. COMBO price is down -7.6% in the last 24 hours. It has a circulating supply of 21 Million COMBO coins and a total supply of 100 Million. If you are looking to buy or sell Furucombo, Quickswap is currently the most active exchange.
What is Furucombo?
Furucombo is a drag-and-drop tool that allows users to build and customize different DeFi combinations (‘combos’ or ‘cubes’). These combos/cubes represent multiple protocol actions bundled into one transaction executed by Furucombo.
As one of the most comprehensive DeFi aggregators, Furucombo connects different DeFi protocols such as Uniswap, Compound, and Aave in one place. Its lego-like interface simplifies the complexity in DeFi, allowing many lay-man users to reap the benefits of DeFi using Furucombo without coding knowledge.
Instead of clicking and confirming five Ethereum transactions, users of Furucombo will need to confirm only one - saving time and steps and simultaneously optimizing users’ actions to save on gas fees.
What is COMBO?
COMBO is the token ticker for Furucombo. COMBO’s mission is to make the Furocombo V2 ecosystem stronger. As part of Furucombo’s comprehensive roadmap, the incoming Furucombo V2 will be an improved version of Furucombo that aims to:
- Maximize capital efficiency (via increasing the number of builders and protocols)
- Solve segmentation issue (via incorporating cross-chain solutions)
- Launch pool combo systems so that users can be fund managers themselves
The functions of COMBO are as follows:
1. Fee sharing
At the moment, using Furucombo is entirely free. However, Furucombo will start charging fees sometime in 2021 to keep the platform running. As a COMBO holder, users will be able to collect returns on the following revenue sources:
- Fees collected from using Furucombo.
- Tokens awarded to Furucombo contracts such as UNI, SNX, etc.
- Fee rebates received from protocols such as a partnership with Sushiswap, Aave, and so on.
2. Governance participation
COMBO tokens are used to govern Furucombo, where COMBO holders will have power in proposing, voting, and deciding on the following:
- Listing of new combo/cubes
- Delist current combo/cubes
- New partnerships
- Grants given to combo creators
- Distribute community reserved tokens
How does Furucombo work?
By dragging-and-dropping, the user can construct the inputs/outputs and the order of the cubes. Each cube arranged represents one specific interaction, such as taking a flash loan or swapping coins on Uniswap. Then, Furucombo chains these cubes up into one transaction and executes it. This makes Furucombo a useful tool for people who want to perform actions across different protocols, especially those who want to leverage flash loans.
Flash loans let users borrow assets without any collateral, as long as the loan is repaid in the same transaction. Thus anyone with access to flash loans can access a huge amount of liquidity and can use the loan with other protocols however they want. Flash loans typically come with a high entry barrier for lay-man users as it requires coding skills. Furucombo addresses this problem because no coding knowledge is required for its platform.
So, Furucombo can provide arbitrage traders the opportunity to easily create arbitrage strategies consisting of the so far coders-only type of flash loans. Below is a potential combo that one could construct:
- Obtain a 15,000 DAI flash loan from Aave.
- Swap DAI to yCRV using 1Inch.
- Exchange yCRV back to DAI using Curve. End up with 15,431 DAI, more DAI than before due to price differentials.
- The loan amount of 15,013 DAI including Aave’s flash loan fee is repaid to Aave. The user is left with a profit of 418 DAI. All of these steps are executed within one transaction.
Although Furocombo does not charge any fees for users to build ‘combos’, users are to trade at their own risk, as Furucombo does not find arbitrage opportunities for you. While using flash loans to make arbitrage trades on Furucombo does not require any upfront funds, you need ETH in your wallet to pay for the gas fee. Arbitrage opportunities are not always available on Furucombo, so a combo may fail if price difference no longer exists. The risk users face is to pay the transaction fees regardless of the outcome.
Here is a step-by-step guide to using Furucombo.
Why was this project started?
Furucombo was started to provide a platform for users to get creative with their trading strategies using different ‘combos’ to maximize returns. The drag-and-drop user interface enables users to participate in programmatic trading without knowing how to code. The possibilities of Furucombo are only limited to one’s creativity and grasp of market movements. However, there are pre-build combos where users can source inspiration.
How does Furucombo differ from others?
Projects like 1inch and Yearn Finance also provide aggregation platforms, but Furucombo differs from both. 1inch only aggregates DEXs, while Furucombo aggregates all kinds of DeFi protocols. On the other hand, Yearn Finance requires writing smart contracts to build a yield farming strategy. Furucombo differs from this, as it is essentially a ‘money lego’ toolkit that enables users to take advantage of the intricacies of DeFi without any coding skills.