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Ultimate Web3 Guide For Fantom Network [Infographics]

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Fantom Network provides one of the newest and most exciting yield farming opportunities, which even the most forward-thinking yield farmers are only just starting to embrace.

Built as a fast, high-throughput, and open-source smart contract platform for digital assets and dApps, Fantom Network is another example of a project attempting to solve the scalability issue that has affected DeFi in its first full year of growth. For yield farmers who have become frustrated with network congestion and high transaction fees on Ethereum, Fantom DeFi provides another useful alternative worth investigating.

With that in mind, this guide will provide all you need to get started with yield farming on Fantom Network. It includes an introduction to what Fantom Network is trying to achieve, how the architecture has been designed to meet these objectives, and some of the projects that already exist on it, as well as how you can set up MetaMask to start staking and yield farming.

What is the Fantom Network?

Existing blockchain networks based on Proof-of-Work and Proof-of-Stake algorithms have struggled to cope with an influx of new users. One of the reasons for this is that most are built on the principle of synchronous consensus, where the block creation and verification processes are straightforward.

Asynchronous networks remove bottlenecks related to transaction speeds, transaction throughput, and network security to improve scalability. Fantom Network went even further by developing and releasing a new Directed-Acyclic-Graph (DAG) network after its ICO in August 2018.

In this way, Fantom Network has a very different design to the first generation of blockchains, which include a system of blocks being built in a specific order. Instead, asynchronous networks have a tree-like structure that allows consensus to be reached via ordering all transactions recorded in Event blocks.

What makes Fantom Network unique?

Fantom is based on the Lachesis graph, an aBFT (asynchronous Byzantine Fault Tolerance) consensus mechanism which involves making links between blocks to form a DAG. Thus, network nodes can process transactions and form blocks independently, which is how asynchronous transaction processing works.

This enables the Fantom Network to process up to 300,000 transactions per second, based on the current infrastructure model. However, this could increase if the number of active nodes is increased.

By relying on the new protocol, the network can stay decentralized and maintain high transaction throughput while introducing a flexible Smart Contract Protocol. This is used to manage the reputation of different addresses belonging to consumers, firms, producers, and other entities. Furthermore, the network can combat malicious actors using this reputation methodology by marking transactions or addresses accordingly.

The Fantom Network ecosystem

Because the Fantom Network’s technology enables micropayments and imposes meager transaction fees, a range of businesses, individuals, financial organizations, and others are attempting to take advantage.

They are deploying dApps on the network with predefined smart contract parameters. This has resulted in the network being widely adopted and integrating with many decentralized services.

The network shows good development and growth signs, as demonstrated by the current Total Value Locked (TVL) in digital assets having crossed a few billion.

Fantom Network Architecture

The network conducts all operations on the Lachesis graph, and this consists of Events, Clothos, Atropos, and the Main Chain (OPERA).

Network stores data in Event blocks that contain different types of financial, technical, and other information. Also, nodes rely on a few other types of blocks, called Clothos and Atropos, so that consensus can be established and the network can stay secure.

The DAG network represents a graph where all blocks are connected to each other. Thus, blocks on the network are created asynchronously, but that doesn’t create any errors since Clothos and Atropos blocks are used to compare timestamps and determine the correct order of all blocks.

The heart of the network consists of Atropos blocks(green). To connect previously created blocks, Clothos are used as an intermediary that has a connection to the supra-majority (2/3) of previous blocks. Clothos have a huge amount of information that should be passed and linked to the main chain or simply Atropos.

Network nodes are always in the active search state for the nearby Atropos blocks that should reside close to the Clotho blocks. Once an Atropos is found, the nodes can look back and determine the correct order of Event blocks created previously. Then Clotho gets linked to the Atropos, and the main chain extends further.

If two Event blocks have the same creation time, an Atropos timestamp is used to determine the correct order. Thus, Sybil Attack, Parasite Chains, and Transaction Flooding can be mitigated by implementing such a complex system.

The network itself consists of the following three components:

Core Layer — The Core Layer is responsible for managing network communications by using a set of internal protocols and mechanisms to ensure correct network operations.

Ware Layer — The Ware Layer is essential because it provides open-source APIs, smart-contract scripts, wallets, middleware, and a functional programming language.

Ware Protocol — The Ware Protocol or Smart-Contract Protocol manages reputations, transactions, rewards, and story data.

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MetaMask for Fantom Network

Currently, one of the best options for interacting with the Fantom Network is the MetaMask wallet.

It can be downloaded and installed as a plugin for Chrome or Firefox. Just make sure you save your seed phrase in a safe place.

Once you have set it up, you need to connect the wallet to the Fantom Network to interact with dApps. To do this, click on the upper dropdown menu and choose ‘Custom RPC.’

Then you need to fill all fields with the following network information:

Afterward, choose the Fantom Opera from the list of available networks.

De.Fi FOR FANTOM

Now you can track your balances, assets, deposits and staking on https://de.fi/dashboard.

To check your Fantom assets, simply click on “Dashboard” and choose Fantom network.

Or, use a customization bar to configure networks.

Staking and Yield Farming On Fantom Network

Fantom network supports staking for the FTM token, providing users with an average of 10% APY and a 365-day lock-up period. The lock-up period can be decreased to a minimum of 14 days with an average of 3.5% APY. To stake your FTM, follow the steps included on the official staking page.

The proprietary FTM token also supports yield farming on different pools that usually provide much higher APY. However, users should be aware that, in some cases, this can be risky due to security vulnerabilities in smart contracts or a lack of token utility.

Here’s the list of the Liquidity Pools that provide the highest APY.

Should I use Fantom Network for yield farming?

Fantom Network provides an exciting opportunity for adventurous yield farmers who are looking for the newest opportunities.

Because of its asynchronous Byzantine Fault Tolerance (aBFT) consensus mechanism and Directed-Acyclic-Graph (DAG) network, it can process up to 300,000 transactions per second, based on the current infrastructure.

It enables micropayments and imposes minuscule transaction fees, which has led to good signs of development and growth, as well as a steady increase in Total Value Locked (TVL).

For all of these reasons, staking and yield farming on Fantom Network look like an attractive option, especially if the progress continues. So give it a go!

Here you can check yield farming opportunities on Fantom: https://de.fi/explore/network/fantom

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Good luck in farming!

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