Last time, HoldStation introduced the next potential trend of DeFi - Real Yield. And the story has begun to unravel as more and more projects are launched under this mechanism. At the same time, old projects also updated tokenomic to better suit the actual situation. This is a double-edged sword with longstanding projects, but if successful, it will be a breakthrough compared to the rest of the "DeFi pie".
Because it develops under a new mechanism different from the old DeFi models, after monitoring and consulting, HoldStation Team has decided to offer the following factors to help investors evaluate a potential Real Yield project.
The revenue of the platform
The Real Yield model can be said to be like a traditional financial dividend. Therefore, the stability of revenue can be said to be a top priority. A project with good revenue will bring stable interest rates along with attracting new investors to join.
The way it works here is that the project will use the platform revenue to buy back tokens and reward users to create buying pressure before selling pressure from investors who have harvested the rewards before. Going against the model of creating a Farming Pool with a "huge" interest rate to attract new users of Ponzi DeFi. Create economic solidity of the project.
You may have experienced locking your coins in a Pool and watching the token price keep falling without being able to do anything. Much of the drop in the token price is due to selling pressure from investors who got into that project before you. Exactly, it is the latter who makes "the liquidity" for the first comer. This is solved by a very good method that is to limit the payment of the platform's governance tokens by simultaneously paying rewards between coins such as ETH, BNB, AVAX,... and the governance token linear havested.
Linear payout means that your harvest of admin tokens will be locked and paid out gradually day by day and hour by hour. This effectively reduces the selling pressure and also reduces the volatility of the asset you are rewarded with.
Total amount of lock (TVL) on the platform
With projects, the platform's TVL amount will be used to supply the platform itself and optimize liquidity for related projects. The larger the amount of TVL, the better liquidity will be provided to the platform, indicating the healthy status of the platform.
Other relevant factors
In addition to the factors mentioned above, investors need to consider issues such as project valuation, Backer and liquidity, Community interest, Team behind, interaction rate on-chain,...
Read more about how to analyze a potential project here.
So what Hidden Gems does Real Yield have to pay attention to?
Because it is different from the traditional DeFi mechanism, the Author only filters out projects with good revenue, stable user base and regular transaction volume. In general, those projects are mostly in the derivatives trading platform along with related projects on providing liquidity for those platforms.
GMX and Dopex.
These are two major derivatives exchanges, which attract most of the inflow of money, have the potential to become a Blue-chip on the Arbitrum ecosystem and are extremely interested and noticed by the community.
Investors can read more about potential projects on Arbitrum including GMX and DPX here.
Project MUX Network
Upgraded from its predecessor MCDEX, Mux Network is a derivatives trading platform combined with Real Yield. The mechanism of operation is similar to GMX but is superior to GMX in points such as leverage, cross-chain (BNB, AVAX, FTM, Arbitrum) and reputable Backer like Alamenda, DeFinance, Multicoin, and especially MCDEX is a project that shares an investment of $100M from BNB Chain's liquidity incentive program.
This is a project that has been in development since 2016 with a working mechanism around using $SNX tokens as collateral to mint sUSD while that collateral is rewarded from platform revenue. Synthetix's ecosystem includes Kwenta DeFi Exchange - a derivatives exchange, dHEDGE - a form of passive investment according to the strategy of "good" investors in the form of assets loaded into the Pool is sUSD, DAI, wMATIC. In addition, Synthetix's ecosystem has another project called Thales Market - a product about derivatives trading and "prediction".
It can be seen that sUSD plays an extremely important role in the Synthetix ecosystem. It is forecasted that by the end of this year, when the World Cup takes place, the demand for sUSD will increase on the Thale Market platform, investors can consider allocating capital to catch the growth wave in the near future.
PlutusDAO is a project that helps users optimize rewards and optimize liquidity for exchanges. PlutusDAO's current partners are projects that have the potential to become a Blue-chip such as Dopex, GMX, JonesDAO.
Your investment in $PLS means that you bet on the development of the platform's partners. The thing to note here is that the circulating supply is only about 1/10 of the total supply according to the team's White Paper. The inflation rate is quite high compared to other projects.
MMFinance is the most interested project on the current Polygon ecosystem. Although it has only been deployed recently, the number of TVLs according to data from Defillama, MMF has surpassed the giants on Polygon to occupy the top position. A few days ago, MMF's twitter announced the launch of a derivative product fork from GMX to catch up with the Real Yield trend.
Fork from a project like GMX is likely to help MMF explode in the near future, resonating with the fact that Polygon's ecosystem is thriving ahead of The Merge.
Real Yield is almost 90% sure that is the next trend of DeFi, AMM Dex projects are also in the process of upgrading under this mechanism and changes in tokenomic limit inflation in the past. The AMM projects you need to pay attention to in the near future are Trader Joe with the new Liquidity Book and Yearn Finance mechanism announced about the recent tokenomic change.
The above are the notes drawn during the time of learning and participating in Real Yield projects. It is for informational purposes only and is not investment advice. Investors need to consider with their capital management to avoid losses.