November 29, 2020 View Online
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Unusually happy Monday. Today we celebrate two things: our 25th newsletter and hitting 1100 twitter followers - thanks for your feedback and support so far! We will continue delivering our content straight to your inbox every Monday, Wednesday, and Friday. Make sure you spread the word and help your less informed friends learn about crypto.

Also we have opened a poll on Twitter where you can let us know what type of content you prefer: NFTs, DeFi, Gaming dApps, or Interviews.

In today’s edition: latest Dracula Protocol updates, Based Money, Core Vaults, and exploring several DeFi platforms on Tron.

Dracula Protocol Audited and Enters Deflation Phase

dracula protocol enters deflationary phase
Dracula Protocol inflation period has now ended and the platform has gone through security reviews positively. Moving forward, the DeFi farming protocol will be burning more DRC tokens than it mints. The Dracula token is now deflationary!

DRC Tokenomics. When a user deposits funds in one of Dracula’s pools, the funds go into a target victim protocol to autonomously farm the rewards. Currently, the team has developed adapters to target Uniswap, LuaSwap, Pickle, or SushiSwap. They have also mentioned the next upgrade will add adapters for Harvest Finance. Essentially, the adapters are a proxy contract that turns Dracula Protocol into one big staker in the victim’s protocol allowing it to harvest the rewards.
When harvesting rewards, the protocol uses the drain function to automatically sell the rewards for ETH via Uniswap. It then uses this ETH to buyback DRC and burns these tokens. The idea is to create upwards buying pressure, which will reward DRC token holders in the long run. Because the total amount of DRC in circulation is constantly decreasing, the asset is becoming more scarce, which can potentially cause the price to go up.
dracula token deflationary ecosystem
Furthermore, this type of design protects the protocol from large whale farmers who just want to dump free tokens and move on. Because the more value locked in the protocol results in bigger buybacks and bigger burns.

Making DeFi ecosystem safer. Team Dracula is also working to improve the overall DeFi ecosystem. The team recently highlighted a severe SushiSwap smart-contract bug, which is most likely present in numerous clone platforms. Though the attack would require admin rights of the MasterChef contract. A malicious operator could cause the loss of user’s rewards or mint unlimited SUSHI tokens.
dracula token
This issue is not present in Dracula Protocol. Additionally, the blog post points out these risks were missed by several top security auditing firms such as Peckshield, Quanstamp, Slowmist, Arcadia Group, and TomoChain. Essentially, highlighting that community auditors who follow DeFi protocols closely may provide better audits.

Protocol Code Audited. Dracula Protocol has gone through two community audits. One was live-streamed by the well known independent Ethereum auditor NCyotee. A second audit was done by Valentin Mihov, ex CTO of Santiment. Both audits did not find any security issues.
Additionally, the team implemented further safeguards into their adapters to protect users from flash loan attacks. Flash loan attacks have been used in the past to drain pools completely. So this type of forward-thinking is great to see.

You can follow the latest updates via their Twitter. Or hop in their telegram or discord to chat with the community.

4 DeFi Platforms on Tron to Explore

four defi platforms on tron to explore
It is quite easy to believe decentralized finance (DeFi) apps are only building on Ethereum. Given that it has the most users, it is where we find the platforms with the most traction. However, with gas fees continuing to rise and ETH 2.0 still far off on the horizon - we are finding other networks making a big push. Tron and dApps may mean gambling to many of you, however, there are several growing platforms solely focusing on building DeFi products. Here we will take a look at 4 DeFi platforms built on Tron that you should take a look at.

List of DeFi Platforms on Tron. This is by no means an exhaustive list, there are many more platforms with motivated teams behind them - here are four DeFi protocols that caught our eye. Additionally, these platforms have been audited by Slowmist or Beosin so we consider them safer for use.

Just Network is developing what could be called the backbone of TRON-based DeFi protocols. The JUST team is behind the stablecoin lending platform JustStable, where users can mint USDJ and earn interest. Additionally, they have built an automated market maker (AMM) for swapping any TRC20 token.
justswap defi platform on Tron
JustSwap resembles Uniswap, allows liquidity providers to deposit funds in pools to earn a percentage of the swap fees. Furthermore, the platform has its governance token JST which is earned through liquidity mining.

Sun token refers to itself as a social experiment that aims to further the development of Tron’s DeFi ecosystem. Essentially, the farming platform offers users rewards in SUN tokens for using different decentralized finance products on Tron.
Sun staking pools for DeFi farming on Tron ecosystem
The main aim of the platform is to help create deeper liquidity for key token pairs. Such as the USDT/TRX pool on JustSwap. SUN is the platform’s governance token which holders use to vote on proposals, such as creating new farm pools. Currently, most pools provide over 30% APY, and users also have the option to stake TRX or SUN tokens individually. This is a great way to enter DeFi on Tron without taking too much exposure.

Pearl Finance is a project built by TronFi, a team behind several DeFi platforms on Tron. For example, they have also launched their own decentralized exchange SalmonSwap. And are working on a cross-chain bridge to link Ethereum, Polkadot, and Bitcoin with Tron.
Pearl Finance DeFi farming protocol on Tron network.
Pearl Finance is a farming protocol that rewards its users with an elastic supply token PEARL. Currently, the PEARL token is fully distributed meaning farming has ended. The team is building a second stage which will feature a deflationary farming token PEV for rewards along with liquidity locking. Unfortunately, the initial launch fell victim to frontrunning, so watch closely for their next updates.

MoonRabbit. It's a little hard to follow developments of the MoonRabbit platform, as they’re lacking documentation in English. However, we found this farming platform to be interesting as its governance token MKR has a fixed total supply of 12,000. Meaning there will not be any problems with over-emission or inflation, MKR’s price should be driven up by its scarcity.
MoonRabbit MKR token low cap coin on DeFi tron ecosystem.
As it stands, MoonRabbit is focussing on launching additional farming opportunities for its users via an Ecosystem Grants Program. These are other platforms that reward users for staking JustSwap LP tokens, however, rewards are paid in CEB or KUT tokens.

Final thoughts: DeFi on Tron. As we can see for those of you that are happy to walk off the traveled path, there are familiar DeFi products on Tron that may work out more profitable for you. Especially if you are finding the transaction fees on Ethereum eat up your farming profits. Users with smaller portfolios may find it easier to scale their DeFi strategies on Tron compared to Ethereum. Additionally, with tokenized Bitcoin implementations such as Bitgo’s WBTC deploying onto Tron - it looks like DeFi on Tron is only going to get bigger.

What is CORE? Locked Liquidity Farming

What is Core? deflationary high yield defi token
Core Vault is a yield farming protocol built to execute profit-generating strategies on DeFi autonomously. Its governance token CORE will enable holders to vote and decide how the protocol will use locked funds to generate returns. CORE is a unique deflationary token, and this reward token takes an entirely new approach towards farming distribution.

What is CORE? Users can stake or unstake their Uniswap LP token at any time. However, they can’t ever convert their liquidity tokens back into CORE or Ethereum. Essentially, this means that all tokens providing liquidity are in a lock - forever. This reduces the circulating supply to add additional buying pressure. Furthermore, traders are flocking to the token as the design makes a rug pull exit scam impossible.

As the fixed total supply is only 10,000 - the token has drawn many comparisons with small-cap DeFi tokens such as Yearn Finance (YFI). As of the time of writing, CORE is trading around $6,081 with a market cap of $60M. Furthermore, the platform’s smart contracts have been audited by the Arcadia Group.

Sustainable farming rewards… Another unique approach is that all the farming rewards distributed to stakers come from a 1% transfer fee on token sends. Which means CORE’s farming operations are sustainable long term without any inflationary concerns.
  • As users have to farm with LP tokens that are locked, it also removes the common problem with whales who appear and leave overnight. These are farmers who do not care at all about the project but leverage their huge portfolio to earn a lot of free coins to dump.
Liquidity generation event… CORE’s launch was also very interesting. All the tokens were put inside a smart contract where investors could deposit ETH, however, it was not a pre-sale. All the funds were then transferred to Uniswap to create liquidity, and LP tokens went back to the initial supporters. They could then start farming!

What is Based Money? The DeFi Game of Chicken

what is based money
Based Money is an experimental decentralized finance (DeFI) project built by Ghouls, which aims to gamify a stablecoin asset. The anonymous team’s mission is to provide an economic game that will always have a balanced and fair entry for all participants.

What is Based Money? BASED is an elastic supply token which can rebase every 24 hours. The Based Protocol will adjust the supply of tokens to target the value of 1 BASED to 1 sUSD. This means that BASED should be loosely pegged to $1 U.S. Dollar. The rebasing mechanism applies to all token holders, meaning if you have 100 BASED tokens in your wallet which are worth $150 sUSD.
what is based money
Then at the end of a rebase event your wallet balance will be 150 BASED. The idea is for users to take advantage of the rebasing mechanism when trading. Winning the game in this sense would be the ability to continuously build up your stack.

Number goes up... to successfully play the game, you have to understand the rules. The protocol will query a Uniswap oracle to compare the price of BASED and sUSD. A function that can only be called every 24 hours. If the price difference is more than 5% in either direction, then a rebase event will trigger.
  • Rebasing is not instantaneous, BASED supply for all holders adjust smoothly over a ten-day period. Meaning you can take advantage of future price movements.
Not correlated to Bitcoin… most altcoins find themselves attached to the market movements of major cryptocurrencies such as BTC or ETH. Based Protocol offers a digital asset whose price movements are not coupled to anything other than its own set of rules. As a result, you have a DeFi product that truly has its own unique value.

Also take note

The information provided on this email should not be taken as investment advice, financial advice, trading advice, or any other sort of advice. dExplain does not recommend the use of any decentralized application nor that any cryptocurrency should be bought, sold, or held by you. You should do your own research and consult a financial advisor before making any investments.

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