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DeFiChains value, Special DFIPS and JAVsphere
Patrick Hammel
August 21, 2023
In todays edition InTheMarket:
Julian's DFIP Proposal: An Overview
DeFiChains value - An analysis
Introduction of JAVsphere by JAVLIS
JellyVerse will be HUGE!
Read time: 4 minutes
Hey,
Welcome to a new edition of the InTheMarket newsletter! There are exciting news and developments in the world of DeFiChain. Let's get started right away!
Julian's DFIP Proposal: An Overview
Julian Hosp has recently completed a Special DFIP (DeFiChain Improvement Proposal) aimed at increasing the value and use of $DFI. Here is a detailed summary of that proposal:
Main objective: support $DFI price by increasing benefits and generating buying pressure.
Wrapping Coins: Julian suggests wrapping all coins that are stackable at Bake (e.g. $DOT, $SOL, $MATIC) and adding them to the DeFiChain DEX. There are no additional rewards for doing so, just the standard 0.2% swap fee. This is to generate potential demand for $DFI.
Staking via beacon: 90% of all coins ($ETH, $DOT, $SOL, $MATIC) from the backing address are to be staked via beacon. Currently, this generates about $1 million USD in rewards. 100% of these rewards are then to be used to buy back and burn $DFI. Bake will provide transparency by reporting on rewards on a monthly basis.
Yield via tokenized bonds: The goal is to generate a near 4% risk-free return on 90% of deposited $USDT and $USDC through tokenized bonds.
Return method for other coins: if a risk-free method for generating returns on other coins (e.g. $BTC) is found, it will also be applied to 90% of the funds. Here, special emphasis is placed on "zero risk".
Risks and returns: The risks of the above are minimal. Nevertheless, they could generate demand of over $1 million at the current $DFI price - and with minimal cost.
Additional information: Bake charges the regular node and reward fees to avoid losses.
Result: The DFIP regarding ETH Staking has already been successfully accepted by the DeFiChain masternodes. The other DFIPs are still in the voting phase, but it seems promising that they will also be adopted. This would:
Positively influence the DFI price through constant buying pressure.
Change the token economy by burning DFI.
Ideally fit into the MetaChain and thus increase the total assets tied up in DeFiChain (TVL).
More information and discussion on this proposal can be found on Reddit at the link provided.
DeFiChains Value - An analysis
Laurence, a member of the DeFiChain community, examined the value of DeFiChain in a Twitter thread based on three key factors: Utility, Usage, and Scarcity. Below, we delve into the first of these factors, Utility, to understand what makes DeFiChain so special.
Utility
Strong community engagement:
Impressive and active community, comparable to NFT project holders.
Deep commitment and belief in the potential of $DFI.
Individuals who make the difference:
@mkuegi: Explains and improves the complexities of DeFiChain.
@DanielZirkel: Developer of tools and websites, active user of DeFiChain features.
@DEFICHAIN_EPIC: Promotes collaborations.
@Feuerphoenix4: Active community supporter and DeFiChain user.
@federbua: Example of successful trading on DeFiChain.
@DeFiDexTrader: Initiator of a DEX trading contest.
Innovative Features:
Metachain: Introduction of an EVM-compatible layer that allows Ethereum smart contracts to be set up expands DeFiChain's range of uses.
In the next sections, the other two key factors, "Usage" and "Scarcity", will be explored to get a full picture of DeFiChain's value. It's all based on the solid insight Laurence shared in his Twitter thread.
Usage
Immediately following the utility of DeFiChain, we would now like to turn our attention to the usage patterns and metrics of the network. Here, too, we draw on Laurence's findings:
Addresses holding $DFI
Approximately 80,000 addresses currently hold $DFI.
Increasing number of Masternode owners.
Indication of the growth of the community.
Number of transactions
Slight decrease in daily transactions.
Trading volume (24h) DEX:
Relatively stable
Generated fees
Best metric for measuring value through user activity.
A strong upward trend in trading fees, making liquidity provision more attractive.
TVL - Total Value Locked (DEX):
Total value of assets locked in liquidity mining pools.
TVL currently shows a downward trend (normal in a bear market)
Number of Vaults:
Increasing use of the Vault system.
But possibly artificially inflated by negative interest rates.
TVL - Total Value Locked (Vaults):
Total value locked in vaults.
Also potentially artificially inflated by negative interest rates.
Proposal activity:
6 DFIPs were submitted this month.
High proposal activity may indicate rapid development, an engaged community, and network improvements.
X-Follower:
Near peak of followers, an indicator of growing interest in DeFiChain.
These metrics and trends provide insight into the active usage and engagement of the DeFiChain community. In the next section, we will take a closer look at the "Scarcity" or scarcity of DeFiChain.
Scarcity
Scarcity is central to the value of any digital asset, and DeFiChain is no exception. Here, based on Laurence's findings, we look at how the scarcity of $DFI shapes up:
Supply
Maximum supply: 1,200,000,000
Total supply: 1,054,655,305
Circulating supply : 735,377,425
Burned: 319,289,316
87.89% have been minted so far.
Distribution:
30.3% burned forever.
27.2% assigned to masternodes.
14.7% allocated to DEX.
And other distributions to vaults, nodes, tokens, the community fund, and as ERC20 collateral.
Emission:
The issue of $DFI decreases periodically.
Every 2 weeks the total incentive reward is reduced by 1.658%.
Inflation:
Despite falling rates, current daily inflation is positive.
However, higher utilization could lead to more burned than spent and thus reduce supply.
Metachain:
The next major update for DeFiChain.
Adds an EVM-compatible layer, allowing Ethereum smart contracts to be created on DeFiChain with minimal effort.
Introduces EIP 1559 consumption mechanism, which would further reduce $DFI supply..
Special DFIP #285 & #286:
Proposals to increase pressure to buy $DFI and increase its scarcity through the burn.
The addition of new dCrypto and pools could bring additional usage, resulting in higher trading volume and more transactions.
Since the pools are only commission based, inflation will not increase and negatively impact scarcity.
The above factors demonstrate the mechanisms and strategies that DeFiChain has implemented to ensure that $DFI remains scarce and valuable. It is this combination of utility, use, and scarcity that determines the underlying value and potential of DeFiChain and $DFI as an asset.
-> Click here for the full thread with graphics!
Introduction of JAVsphere by JAVLIS
Summary: JAVLIS, originally founded as a centralized financial platform, has unveiled JAVsphere on the DeFi Meta Chain (DMC). JAVsphere is not just another product, but a holistic, decentralized suite of DeFi products and services on the Meta Chain. It aims to make these services easily accessible and significantly improve the user experience. Instead of having to deal with the usual complications of DeFi on the Meta Chain, JAVsphere provides an all-in-one solution.
Relevance for DMC (DeFiMetaChain): JAVsphere fits well with DMC's vision, which focuses on connectivity between different blockchains such as Bitcoin and Ethereum. JAVsphere takes the same approach, unifying all DMC projects under one user-friendly platform. It promises to revolutionize the way we interact with DeFi projects.
Personal Insights: The development of JAVsphere by JAVLIS shows that there is an urgent need for user-friendly platforms in the DeFi world. The concept of creating a central platform that integrates various DeFi services could mean significant adoption and ease for users who want to reap the benefits of DeFi without having to wade through complex processes and platforms. If JAVsphere is successful, it could serve as a model for other DeFi projects in the future. It will be interesting to see how JAVsphere evolves and how it impacts the DeFi landscape.
JellyVerse will be HUGE!
Last week I had the great opportunity to do an interview with Santiago from the JellyVerse team. And guys, I can assure you: JellyVerse is going to be HUGE! I'm currently in the process of getting clearance from the team to post the video. You guys can be excited! I will definitely keep you guys updated. How many of you are already hyped?
Once it's published, you can listen to the interview both as a podcast on Spotify and Apple Podcasts or on YouTube!
🎧 Dive Deeper with InTheMarket Podcast and YouTube Channel
Want to explore more about DeFiMetachain? Check out our podcast episodes on Spotify and Apple Podcasts, and don't miss our YouTube video where we discuss DMC in detail:
💬Share Your Feedback with Us
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Best regards, Peddy