Where is the future of liquidity mining?

Currently, liquid mining appears to be oil-free, and many sub-industries in the cryptocurrency space are looking for alternatives.

The main driver of the 2020 “DeFi Summer” craze is the possibility of mining capacity. The concept means that the user commits to Stablecoin or the symbol of value and then pays the revenue to the platform, such as trading, lending and borrowing from the platform. You can receive tokens sent by the platform as a gift.

However, in recent months, the mining industry has become "inaccurate" supporting equipment and even attacked by a group of Ethereum miners. As a result, many new jobs began to emerge as alternative avenues for capital extraction, such as "DAO-DAO"-focused contracts, timescales, and fixed income investors. These new plans seem to constantly change the way things are done. DeFi staking reader protocol.

Among other applications, there are procedures called "Liquidity as a Service" or "Protocol Control Values" or "DeFi 2.0" that can work, regardless of your name, the important content is the same. Winnings are controlled by the promotion.

This effort seems to attempt to answer a very simple question. So far, “free” money has become the driving force after DeFi adoption. So what could be more precise?

With the advent of the new year, tasks that can solve the above problems have become the most popular tasks for traders and investors. Despite the economic downturn, the process focused on generating revenue has passed. Some believe that this difference is due to the improvement of Web 3, which can be used and marketed as profitably as data on the Internet.

In this regard, Joey Santoro (Joey Santoro), founder of Fei Protocol, said: "Liquidity is king. The way I create the framework is through resources and data storage (cloud computing) and storage data) for Internet management.”, requires loans and cost-effective services such as Automated Systems Manufacturers (AMM). We also need a profitable store that is a function manager. "

Who is in charge of DeFi management activities?

Others, like venture capitalist eGirl Capital, take the stock market as normal. It is this struggle to control the flow of promises, even though performance-based services that eventually become a fad were briefly supported by the industry. Cryptocurrency trading has not changed, becoming the new pillar of the cryptocurrency market, or at least for now. The DeFi space sex arm is the key weapon in the $230 billion market.

Joy Santoro added, “Business is one of the two most important things in this new world, and whoever runs the business runs DeFi.”

However, the extraction water seems to be the same.

Through the use of a proven protocol, liquidity mining has begun to emerge as the future of the market suitable for project mining equipment.

During the summer 2020 "DeFi boom", DeFi Protocol Compound created a buzz by using COMP token giveaways to boost revenue from its lending platform. Backed by similar support, processes like Sushi temporarily work better than Uniswap's competitors.

However, recent reviews have pointed out that while the huge rewards for users will certainly encourage short-term participation, the mining performance is not unique. The tool is comprehensive and has been mapped by "Deaf Grass Juice" by talented DeFi developer Andre Cronje. They are called "temporary miners" and when the tokens are gone they are rewarded and move on to the next pool.

Deribit Insights researcher Hasu said in a recent podcast:

Why do you say that? 'Cause I don't think there's a feeling underneath. We have to think carefully about "what do we want out of this?" What do you think of your protocol setting liquidity targets? When the goal is reached, there will be no more gifts. "

Are consumers important?

In contrast, new project rollouts that leverage cash have made revenue transparent. They tried to count how many dollars were paid out in gift certificates in the process and how many dollars were increased by staking. In some cases, they achieved process efficiency under the direct guidance of the DAO.

The first part of this extraction process was caused by a collision.

Automated trading developer Curve will introduce “voting” in August 2020, allowing CRV tokens to suspend their CRV escrow voting (veCRV) token exchange for up to four years. Alternatively, VeCRV can vote for any liquid pool that can receive a CRV reward, with the power to vote incredibly for those who close tokens longer.

At the time, individual miners seemed to be the tools to increase their profits. Locking certain CRV rewards allows miners to offer more rewards to their preferred pools where they can earn more in the long run. However, the modified procedures for non-individual minors have proven to be the main beneficiaries of the system. In what is now known as "Curve Wars", people race to collect CRV tokens.

Also known as the "Ve Economic Model", according to an anonymous analyst, this "vote" is a metaphor for popular interest, but focuses on controlling the individual who can store the most tokens."

In short, the person who writes the most veCRV controls the output rate of the CRV reward.

Currently, the "kingmaker" protocol that handles Curve payments is Convex Finance. According to data from Dune Analytics, Convex accounts for 43% of all CRV token series. One CVX convex governance token of voting rights is equivalent to 5.1 CRV tokens.

In fact, Curve and Convex are also the two largest companies in DeFi, and according to data from DefiLlama, the total volume of foreclosure between these two policies is $40 billion.

As a result, "new markets" quickly emerged from the market. Platforms such as Votium can be used to "bribe" CVX executives in trust using the process of transferring capital to key assets.

In fact, "kickback" deposits as well as deposits are the perfect complement to the DeFi protocol.

For example, in a stablecoin like Terra's UST, deposits in the Curve pool actually contribute to healthy, marketable liquid for the UST, keeping the UST pegged to the US dollar and creating utility for stablecoins. Prizes, giveaways and goals are transparent.

In fact, in a recent executive meeting, the UST Stablecoin team concluded that the process continues with plans to support CVX “coin” deposits and plans for CVX tokens to “work great.”

To some extent, these advantages mean that "DeFi Ve marketing" may be there.

Edited Founder 0xSami said, "Assuming you are Stablecoin, it makes sense to buy Convex Token because Stablecoin values ​​are designed to be capital. Also, if you want to earn Or, you will need to buy Ribbon Sushi or Aave Voting to escrow tokens and use them for DEX liquidity as a liability for lending will be a big difference this year.”

Is there trust in the "one" DeFi ecosystem?

As a consequence of the "coin" market, many new products such as Warden, Bribe, Llama Airforce, Votium, and Votemak act as in-game regulators or voters. Cutting-edge technology is evolving and improving product handling and management commercial. of marketing.

Among them, Votemak recently acquired Redacted and management business platform Bribe recently announced the completion of a $4 million seed environment to help develop the VEV protocol. Spartan Group led the competition with a partnership between Dragonfly and Rarestone Capital.

To be fair, part of the reason these operations have increased is that other DeFi projects have embraced the Ve "transformation" industry model, creating more market share for the DeFi protocol to buy a ticket of. business.

Tokemak is a project like this and plans to become a decentralized developer. Users deposit and receive TOKE tokens as a gift. These tokens can be used to vote for the DeFi protocol to distribute revenue. Thus, Toknak is now another target of the DeFI protocol, which "only" seeks to lead the market. At the same time, other companies (such as Frax and Yearn) began to experiment with introducing Ve-style business models.

“Vendors understand what we do and how important it is,” Condorcet, an unnamed lawmaker, said behind them. “For the first time, bribes were paid as a rallying cry.

Unsurprisingly, the new venture attracted venture capitalists. Ashwin Ramachandran of Dragonfly Capital, one of the newest venture capitalists, said, “A well-balanced measure could lead to illegal sales of managed tokens. "

Token management

Some custom DeFi games "only" play games to seduce pool water that benefits them, while others choose to control water directly. Moreover, the “politics of the movement” is a new phenomenon.

The Algorithmic Stablecoin Protocol Project Fei is a collaboration with Ondo Financial, the DeFi protocol aimed at reducing permanent exchange risk, to create trading products that allow the process to directly create direct flows by integrating Financial institutions always have a token with Fei's Stablecoin.

This means that the DeFi protocol can create a liquidity pool directly instead of the process of creating user deposits in the liquidity pool, and more importantly, it allows the process to keep a portion of the exchange rate in the pool. liquidity, thus creating new income. to flow. the. .

This logic has been applied to Olympus' contracting service, Olympus Pro, where Olympus' B2B protocol contracts for businesses, allowing the process to control the exchange of tokens and earn exchange rates.

Joey Santoro, founder of the Fei Protocol, explains that this is part of the "DAO Direct Connect" service that helps third parties better manage DAOs for revenue and other token needs.

Protocol member abilities have become vertical per se, and Olympus and various forked protocols, including processors like Wonderland and Redacted, have accumulated large amounts of CVX tokens and other type tokens with the ability to "bribe" Send money. We hope that our token holders can be used to generate future revenue.

In a recent tweet, Wonderland developer Daniele Sestagalli confirmed that she has moved away from Olympus' "annual revenue campaign".

Meanwhile, Redacted's 0xSami said the process wanted to create a "meta management token" that would make the project an asset. In fact, Redacted has already started doing this, for example, the BTRFLY “meta-governance token” has played a key role in many regulatory processes. Protocol vaults receive fees from these services, and these fees can be paid by contract or similar financial services. Ranking tools. 0xSami said:

"The truth is that we now need annual repayments to become competitive in the market, but once the product is generated, the tokens do not need to be returned by the machine because it allows us to report activities with a refund.”

An example of this concern is the Wonderland Avalanche Protocol Ecology Project. On January 7, Wonderland, an algorithmic currency trader based on Avalanche, began investing in BetSwap, a decentralized betting application based on Polygon. The move is one of the first examples of communities running crypto investment projects in the DeFi protocol. On January 11, Wonderland had a balance of over $1 billion, and as early as January 18, Wonderland made a large equity purchase, which was also the first instance of "quantitative easing" for the project. Challenge.

layer 2 extension

Interestingly enough, until recently, most experiments with "guesswork-based services" have focused on Ethereum. Many options for Layer 1 haven't been very effective because they still have high performance support and still use the same tools. Now is the best time to break the traditional DeFi model, and this time it is mature.

Speaking of Ethereum's other line, Joey Santoro said:

Provide tokens for the platform and support the future development of the platform. It is undoubtedly a very strong idea.

In fact, the DeFi protocol called "industrial model Ve" is already starting to appear in other ecosystems. For example, Andre Cronje and Sestagalli are currently involved in the unpublished Fantom-based project called ve(3.3). It is the most important of the "Ve business model" and the Olympus staking program.

The unannounced project has already been very popular, but on Tuesday (January 18) a new project called veDAO will appear, giving you control over most of the ve(3.3) protocol. Hours over 785 million.

At the same time, Joy Santoro announced that Fei Protocol plans to select phase 2 to change its ecosystem. He believes this will be beneficial for the Fei protocol and also pave the way for the mining industry. Joey Santoro says:

"The Fei protocol will move to layer 2 and build L2 as we see fit. Who can compete on the lockdown blockchain without a $1 billion incentive?"

What is the future?

"Liquidity as a Service" is one of the biggest cryptocurrency companies right now, but the problem is that even people working in this "Liquidity as a Service" field are the future ahead of cryptocurrency projects. cryptocurrency. .

The edited founder 0xSami believes that projects such as Curve and Tokemak, which have become major centers of liquidity through support services, will capture most of their share of business in the future or disappear altogether.

"For DeFi projects like Curve and Tokenak, one of them is the best liquidity hub, or full descriptions and they die one by one."

Over the past few weeks, some analysts have pointed out that although many DeFi protocols have more closed volume than in the past, Curve's Stablecoin Swap volume (and market share) adds to Curve's "ground" with Low cost Uniswap v3. I did. The pool extends to the “land” of the curve. the basis of market share) is the decline.

The analyst, who did not want to be named, expressed his displeasure with the success of the Ve-style business model, noting that the ve-token "didn't do it right" but that "business management and asset management versions are excellent". The analyst said:

"This is Curve's best gift to the DeFi ecosystem. The ability to distribute tokens on the platform as liquid versions that will support the development of the platform in the future is undoubtedly the idea is very strong ."

At the same time, Joey Santoro believes that the end of the DeFi market development will not be a winner, but a global, liquid and competitive business.

“I can see that it will not be an independent ecosystem, but a group of competing ecosystems. This is part of the story of the DeFi industry coming together. Tokemaks, Olympus, DAO, Curves absorbing liquidity and controlling, the will also help.”

Although the outcome is unclear, some of the work that took place during the capital extraction mining boom showed us how to attract and motivate users.

Joey Santoro finally says the value -

"I don't think there's anything wrong with trying."