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Coin Healthcheck: Grim Finance (REAPER)

About

Grim Finance is a compounding yield aggregator on the Fantom Opera blockchain. The decentralized finance (DeFi) protocol allows users to stake liquidity provider tokens that they get from Automated Market Maker (AMM) platforms. Grim Finance automatically re-stakes rewards for a compounding effect, and thus helps to boost the returns. 

The DeFi protocol is a fork of multi-chain yield optimizer platform Beefy Finance “with an enhanced user experience and a wider selection of Fantom pools.”

Grim Finance comes with two different tokens: the protocol’s main deflationary GRIM token, and REAPER, the farming token.

Grim Finance was released in late 2021.

State of the Project

✅ The protocol runs on the Fantom Opera blockchain which aims to solve blockchain trilemma, and is fully compatible with Ethereum. 

✅ The Grim Vaults protocol is compatible with zappable cross-chain functionality.

✅ The Grim protocol allows users to stake various tokens into Grim Vaults in order to earn rewards in the project’s native token. Grim Vaults automatically check the compound harvest and reinvest it every 60 minutes, deducting a small fee.

✅ The GRIM token allows the protocol’s users to become its shareholders. It can also be used for staking and earning XGRIM tokens, which grant voting rights on the platform’s DAO.

✅ The protocol takes a 1% burn fee and a 1% liquidity fee on transfers.

✅ REAPER is a farming token that Grim Finance plans to link with its Game Model, Index Funds, and Farming Pools. It can be used for playing games on the Grim Finance ecosystem.

Whitepaper

❌No separate document available for the project’s whitepaper.

✅ The project’s description and tokenomics are reported in the official website docs.

Development stage

✅ The protocol has been audited by Solidity Finance, a smart contract auditing service that protects over $1 billion in on-chain investments.

✅ The project is in the final stages of launching the Grim Casino with ‘6 Max No-Limit Texas Hold’em as the first game.

✅ 15 farming platforms launched, 142 vaults added, GRIM and REAPER tokens launched, REAPER Farms deployed, Vaults migration to V2 implemented.

❌ The Grim Finance platform lost $30 million worth of Fantom tokens during the attack on December 18th, 2021, when the vulnerability of the vault was exploited.

Roadmap

✅ The launch of the Index Fund Vaults, Betting Market Maker, and GRIM & REAPER synthetic mechanism are “in production,” according to the project’s roadmap

✅ Zapper functionality, Grim Reaper’s merch store, and partnership acquisition are all planned for the future.

❌ There are no timelines for future development plans.

Fundraising

❌ No data on the origins of the initial liquidity.

Team

❌ No data has been submitted on who the members of the Grim Finance team are.

Community

✅ Social media accounts: Twitter (15K), Discord (9.5K). Active communication, regular posts.

❌ Community involvement low both in numbers and value.

❌Grim Finance has zero activity on GitHub, although their official website has a link to it. 

Key metrics

Max supply: 100 million

Circulating supply: 46.5 million

Market capitalization: under $1 million ($567K)

Total value locked: $4.1 million at the time of publishing

ATH: $0.06337 (July 2021)

ATL: $0.0069 (December 2021)

 

Token distribution and allocation

✅ 85% of REAPER tokens are distributed to yield farming.

✅ 10% of the supply goes to developers fund.

✅ 5% of the supply is dedicated to community airdrops.

Exchange listings

❌ Only available on the SpiritSwap decentralized exchange on the Fantom Opera blockchain. SpiritSwap is in its initial development stages.

Wallets

❌ The Grim Finance Wallet – not yet available at the time of publishing.

Verdict

  • Grim Finance seems like a high-risk zone to be honest, especially after the $30 million protocol hack that led to the compounding yield aggregator losing over 95% of its TVL (Total Value Locked) in a single weekend, dropping from $98M to $3.4M. 
  • The project itself is quite new, the development team is anonymous, and thus no one is able to check how experienced or reputable they might be. This also means no accountability for the investors in the event that funds are lost.
  • Vault protocols are one of the highest risks in the DeFi space. The yield generating contracts are very complex and require an exceptionally thorough approach to inspection.
  • Grim Finance was audited by budget auditor Solidity Finance. In general, this is standard practice for young and small projects, but since the Grim Finance protocol was inspected and still got hacked, this should become an eloquent criteria for future project evaluations.

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