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The Crucial Sign of DeFi Maturity

15 September 2020 12:07, UTC
The Crucial Sign of DeFi Maturity
By Andrey Sergeenkov

Yield farming phenomenon is just at the beginning of its evolution. Its awareness is taking off and it's a key. People can figure out their way into it since the best passive income strategies out there. DeFi beats the legacy financial markets in many senses: more friendly UX consumer experience, better financial outcomes, integrity that matters.

Yield farming is one the best strategies to get into DeFi. New yield farming program is under way. Its name is “Volcano”. The focus of Volcano is on the KTY token liquidity provisioning incentive program for the popular fan favorite combat Cryptokitties NFT MMO game called KittieFIGHT.

Gaming Dapps get a New Financial Meaning

The KittieFIGHT Dapp essence is similar to fan support at a boxing match; throwing the weight behind players in two confronting teams; bet Ether on two Cryptokitties NFT's set up to fight each other in mortal kombat style. The Cryptokitties NFT's are geared to fight hinging on frequency and style of player Ether bets. The two players' camps are motivated to struggle with Ether over the huge, massive Ether jackpot, that grows to at least 10x of its commencing size to provide a huge prize to the game's participants and interests to initial providers of liquidity.

It's worth to stress that KittieFIGHT is the first innovative DeFi lending platform that uses a gamified approach to provide lending for gamers and other cryptocurrencies’ users.

KTY becomes an example how the token of the decentralized platform gets one more financial meaning since a new yield farming program brings an opportunity to get a huge benefit. First of all, there's a KTY Dutch auction, and Volcano yield farming program kick-off is scheduled exactly before the Dutch auction ends.

The KTY Dutch Auction

The KTY Dutch auction is the initial KTY distribution that precedes yield farming program. Users have an opportunity to freely set the price of KTY by sending Ether bids in the course of a two week bidding time frame in the Dutch auction. They can then receive from +500% up to 6000% more KTY tokens and KittieFIGHT DAO (SDAO) tokens for providing KTY and WETH, ANT, yDAI, yYFI, yyCRV, yaLink, aLend, aSNX, yETH, aYfi, 2key, GNO, yETH liquidity on Uniswap tapping into potentially +$780 million USD worth of governance power without risk of impermanent loss.

KittieFIGHT DAO (SuperDAO) tokens have a governance participation peculiarity and it's possible to stake these tokens against Ether pools generated from KittieFIGHT games, producing Ether staking rewards/revenue to “active” DAO token holders each seven days.

One may definitely see that KittieFIGHT and DeFi service as KTY yield farming in the form of Volcano program empower each other. The crypto infrastructure is solid, and Uniswap shows that DeFi shrugs off the “zero-game” concept the financial legacy system follows. “Zero-game” implies when the bulk of Wall Street investors start hugely investing into FANGMAN (Facebook, Apple, Netflix, Google, Microsoft, Amazon, Nvidia) then the oil and gas sector loses, and vice versa.

Non Zero-Sum Game

KittieFIGHT platform gaming system can be compared to a high yield game bankrolled by an open source deposit and lending financial institution, which is collectively funded by lenders. The game generates a weekly added value to this institution, and lenders get access to this generated value and have the right to withdraw it. The degree of lenders' primary capital commitment set up a route rule for this value distribution.

And what one may witness that there's a perfect example of a non zero-game approach. KTY is an integral part of KittieFIGHT internal ecosystem. There're only 100 million tokens that can be minted, the system framework stipulates a subdued emission and encourages people involvement into the mechanic of KittieFIGHT arranged matches when they pay the fight scheduling fee, fight admission tickets, and Kittie redemption fees from Kittiehell. The increasing call for use of KTY in games is a prompting factor for the token value and it implies rewards to players in each game.

The DeFi industry is growing. DeFi matures very quickly, and appearance of Volcano yield farming program incentivizing on-chain liquidity is a good proof for that. KittieFIGHT and KTY gets new boost from Volcano since they're part of the transformation of decentralized finance to a more stable mode.

The Future Belongs to DeFi

When we asked Oladapo Ajayi, the founder and systems architect of KittieFIGHT and KittieFIGHT DAO, how the protocol can guarantee lucrative interests to lenders, he said:

“Every game must return 10x its value in order for games to be finished. DeFi enthusiasts will be able to benefit from the system soon; the gaming protocol along with the game is ready for mainnet, while awaiting smart contract audits.”

As it was mentioned above, Uniswap is one of the bricks of the cryptocurrencies infrastructure being used in Volcano. Decentralized Exchange Uniswap outran its own August's record in the first 10 days of September, reaching $6,7 in trading volume. Uniswap is afloat and thrives despite rivaling Sushiswap DEX advent. These current developments prove that the future belongs to DeFi, and the non zero-sum game approach wins.

About the author:

Andrey Sergeenkov is a cryptocurrency investor and trader. He covers DeFi, crypto, blockchain, and crowdfunding as an independent journalist.

Image by State of the Dapps

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