November 28, 2020 View Online
dExplain Logo
An attacker was able to drain $24 million out of Harvest Finance, spoiling an honest farmer’s hard work. A sharp reminder that DeFi protocols are still very new and experimental tech. It looks like once a protocol locks up a massive amount of liquidity, it’s getting “audited” for real.

Meanwhile, our latest poll showed that people prefer TA to horoscopes, however, it’s almost 50/50. What about the next DeFi theme trend after Halloween? Let us know.

In today’s edition: different deflationary yield farms with Boo Bank and Kore Vault, exploring a new approach to asset management with DEXTF Protocol, and our first look at DeFi on EOS with Vigor Protocol.

DEXTF: Asset Management Protocol for DeFi

what is DEXTF protocol
DEXTF Protocol is an asset management protocol, it enables DeFi users to hold and trade multiple different crypto assets in one standard ERC20 token. You can draw similarities with the decentralized crypto index funds by PieDAO or Axia Protocol.

What is DEXTF Protocol? DeFi users currently face a conundrum: there are so many innovative assets to hold! And nearly all of these projects have their liquidity mining programs. This means if you’re holding five different DeFi tokens, you will incur multiple transactions and higher gas fees - just to claim all your rewards. To the point, it could be more profitable for yield farming to park all your portfolio in one asset, but then what if that project collapses? DEXTF aims to solve these problems through XTF token funds.

What are XTF Token Funds? An XTF token fund will represent a basket of assets, in the form of one highly liquid token. This means holders can gain more DeFi exposure at a faster rate, without giving up any ownership. Users can create their own funds using the Portfolio Manager. Currently, you can add up to 10 different assets into a fund. At the moment, the supported assets are tokens listed on Kyber Network. You can expect more tokens to be added as the project grows.
The idea is that the protocol will mint the fund into one token, enabling users to enjoy trading multiple DeFi assets without incurring hundreds of transaction fees. Furthermore, there are no lockups for asset diversification, meaning you can redeem the underlying tokens at any time. The whole process remains permission-less at all times and does not require any third party. Interestingly, the team states they believe decentralized oracles for price fees are dangerous. Therefore, DEXTF features no oracles and all price discovery will be done via arbitrageurs.

DEXTF Token. DEXTF token provides holders with voting power for protocol governance. It also intends to be an incentive mechanism for usage, with distribution happening via liquidity mining programs. The more DEXTF tokens in a user’s wallet, the higher the voting power they have during proposals. Such as voting to adjust system parameters like management fees or interest rate algorithms.
The rewards distribution of DEXTF is changing every month and there are many ways to get involved. Rewards go out to investors in the funds or portfolio managers who create the best performing funds. Additionally, there are daily rewards for providing liquidity to the DEXTF/ETH pair on Uniswap. No staking is required to get involved, the team takes daily snapshots to issue the rewards.

Looking to the future. DEXTF Protocol aims to facilitate investment for people who want to buy crypto assets but do not have the time to manage it. Hopefully, it will allow capital owners to find experts who can manage their portfolios. For more traditional finance users, this type of setup may be more attractive than depositing funds into automated smart contracts. It will definitely be interesting to watch the portfolio managers explain their investment strategy, and see how they stack up against each other.

BooBanker: Deflationary Yield Farming with Spooky NFTs

what is boo banker BOOB and ECTO token review
BooBanker is a deflationary yield farm on Ethereum for staking Uniswap LP tokens. The DeFi project provides users with rewards in two yield farming tokens: BOOB and ECTO. Both tokens are deflationary to ensure a sustainable long term operation.

What is BooBanker? The project is heavily inspired by RottenSwap, another two token farming platform that features deflationary tokenomics. In fact, both communities overlap, so we can probably expect some spooky crossover NFTs for Halloween. For holders of both tokens, don’t worry, a special ROT-BOOB farming pool will go live this week.
what is boo banker
However, unlike other deflationary farming platforms, BooBanker is able to offer users very high APYs. As of the time of writing, all of the farming pairs offer over 3500% APY.

BOOB Tokenomics. BOOB is the platform’s main reward token for yield farmers, designed to keep a total supply of around 50,000. Interestingly, the protocol can automatically adjust BOOB’s emissions and burn rate to stay within the target total supply. When a holder transfers BOOB, 3.5% to 4.5% will be burned, however, the tokens are not just destroyed. The burn mechanism design intends to help the project grow and provide value for the seller. As a result, 1% of every burn goes into the marketing fund, and the remaining turns into Ectoplasm (ECTO) tokens.
Meaning there is an incentive to keep transferring BOOB tokens, as you’re paid in ECTO. This will speed up the whole deflationary nature of the Boo Banker ecosystem, creating stronger buying pressures. Furthermore, ECTO tokens are burnt at the same rate as BOOB for every transaction.

Spooky NFTs. BooBanker is not aiming to just be a farming protocol. As you can see by the pairs offered for staking, the team does not want to attract freeloading farm whales with ETH-USDC pairs. Each pair requires either holding BOOB or ECTO, or both. Additionally, to provide more value to token holders Boo Bank will launch an NFT marketplace. These rare NFTs, most likely a spooky ghost theme, will only be purchasable with BOOB and ECTO together. As a result, there is a strong incentive to hold and not dump the rewards tokens immediately.
Boo Banker Q4 Roadmap
Future plans include releasing a gambling dApp that will use ECTO and a merch shop for BooBanker Memelore where payment happens in either token. With Halloween just around the corner, surely it's a good time to hold a ghost?

What is KORE Token? KORE Vault Explained

what is KORE token
KORE Vault is a DeFi platform inspired heavily by YFI and CORE as it also does not have continuous token generation. Every feature on the platform aims to capture value for KORE holders by increasing buying pressure, and autonomous yield generating.

What is KORE token? KORE is a non-inflationary cryptocurrency, meaning its supply is capped at 10,000 and no new tokens will ever be minted. As a DeFi platform, the KORE Vaults aims to autonomously generate profit for its users. The project builds off the strategies of Yearn Finance vaults, which automatically move deposited assets following strategies to farm the highest returns from other protocols. The main idea is that hundreds of users can come together as one super investor, which saves them a lot of time and money.
what is KORE token?
As a result, users save time from not having to continuously search and find the best DeFi farming strategies. And the money saved from keeping transaction costs to a minimum, as there should be less staking and unstaking. However, with KPools all the generated profit is used to market buy KORE and distribute to stakers.

Liquidity Generation Event… KORE tokens were distributed through a fair launch smart contract. This allowed the team to generate liquidity which went immediately into the Uniswap pool. It works by investors depositing ETH, and receiving KORE Uniswap LP tokens in return.
  • KORE Uniswap LP tokens are locked in the liquidity pool, meaning holders can never withdraw them for the underlying assets. A process is known as liquidity locking, which ensures KORE will always have liquidity for trading.
Deflationary Farming… Buying pressure increases as more users stake in the KPools (as KORE is locked). To keep the ecosystem sustainable and an incentive to lock up more liquidity, there is a 1.5% transaction fee on KORE sales. From this fee, 7.24% is given to the devs and 92.76% goes to the farmers.

What is Vigor Protocol? DeFi Lending and Borrowing on EOS

what is vigor protocol
Vigor Protocol is a decentralized lending and borrowing platform powered by the EOS blockchain. Users can deposit various crypto assets as collateral to earn interest, or borrow the stablecoin VIGOR.

What is Vigor Protocol? Vigor Protocol is a DeFi platform deployed on EOS, as a result, users do not face the scaling issues found on Ethereum as the protocol is gasless and does not have transaction fees. The protocol uses a two-token system: a fee-utility token VIG and a low volatility VIGOR token.
what is vigor protocol and VIG token
Though VIGOR is not marketed as a stablecoin, it is designed to have very low volatility, as it is minted by a pool of overcollateralized cryptocurrencies.
  • VIG token is used for fees, users need to have VIG tokens to access the system. Additionally, a portion of VIG is locked up to be used as the ecosystem's final reserve. VIG also acts as the platform’s reward token, distributed to lenders, savers, and insurers, as a way to incentivize deposits.
  • VIGOR intends to be a low volatility token minted by the protocol. VIGOR provides stability for traders to leverage their position or market hedge.
Multi Collateral. An exciting feature of Vigor Protocol enables users to provide a portfolio of collateral to back a single loan. Meaning you can deposit various supported assets to mint VIGOR for your crypto-loan. As a result, the protocol is more secure as a whole as borrowers do not have to expose themselves to just one asset.
what is vigor protocol and VIGOR token defi on EOS
Levels of Loan Protection. To avoid the ecosystem collapsing, Vigor Protocol has several layers of loan protection built into the platform.
  1. Much like other DeFi lending protocols, borrowers have to over collateralize their loans.
  2. Tokens are deposited by lenders as insurance assets to provide further protection from price jumps.
  3. If the insurance pool is depleted, then the Vigor Final Reserve will ensure the ecosystem remains safe.
No Liquidation Penalties. During any bailout process where a borrower would be liquidated, the protocol does not charge any additional penalty fees. Many other DeFi protocols will charge you with high liquidation penalties up to the range of 20%. Vigor does not have any administration or stability fees.

Reputation Score. Unlike other decentralized lending protocols such as Aave or MakerDAO, users can build a reputation score on Vigor Protocol. This enables users to receive discounted rates on loans, or a higher voting power for governance purposes.

Why use Vigor Protocol? Given the high transaction fees and slowness currently found on Ethereum, users may very much enjoy a switch to EOS. The EOS network does not charge any transaction fees and features 0.5 second block times. As a result, users will always have quick access to their funds. These are some of the reasons users are moving to DeFi on EOS, Tron, or Binance Smart Chain.
what is vigor protocol
Additionally, Vigor Protocol does not rely on any auction features that rely on secondary markets to buy the bad debt. You could argue that as VIGOR’s loan debt automatically regains solvency by going to the insurance pool, the design could be safer than say MakerDAO. It will be interesting to see how the platform grows, competing with new protocols such as Venus on BSC or Harvest on KavaChain.

Also take note

  • Harvest Finance: Suffered an economic attack via flash loans where the attacker has exploited over $24MM. Hacker has cashed out nearly everything via tornado.
  • Axie Infinity: Binance has announced the next project on its launchpad will be Axie Infinity Shards (AXS), which is the governance token for Axie.
  • KavaChain: KAVA is now tradable on Binance Smart Chain, and its first liquidity pool is live on Pancakeswap.
  • Solana: USDC is now integrated on Solana, a big boost for DeFi projects such as Serum DEX.
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.

Unsubscribe | Manage your subscription