Exploring Ecosystems: A Bi-weekly Look At... Everything 01
This has been quite the exciting year. After first being exposed to decentralized finance thanks to CubFinance, I have found myself invested in dozens of different projects, across multiple blockchains. Being in a handful of Discord servers, and following different Twitter accounts has led to me uncovering more and more interesting projects as time has gone on.
The plan is to write up a post twice a week, where I do some diving into upcoming launches, project updates, or whatever else seems interesting.
SunnyCats NFT (Solana > Terra)
SunnyCats is a collection 10,000 adorable cats that will be launching on Solana. SunnyCats aims to actively make a difference, by having 20% of mint proceeds, trading royalties, and revenues from future airdrops be donated to the Georgia Innocence Project.
While many profile picture projects are out there, what makes SunnyCats enticing to me is a focus on charity, and the eventual creation of the CatDAO. Once SunnyCats successfully launches, a DAO will be created which will own the project going forward. The first decision for the CatDAO will be to come to a conclusion on which charity will receive 20% of the revenues from the next project: LunarCats.
LunarCats will be launching on Terra, with rewards being given to SunnyCat holders when it launches.
As a lot of people have discussed on LeoFinance: DAOs are the future. Owning a SunnyCat will enable holders to taken on an ownership role in the DAO, and from there, the possibilities are endless. The team is made up of some decent folks, and I am optimistic about their ability to keep this ship sailing smoothly.
And I mean, look at this art:
Be sure to get into the Discord (https://discord.gg/fQW48ByZ) and say hi, we're always looking for newcomers to join the group.
CyberFi has exists as a platform on Ethereum, but I recently learned about it because they will be bringing their native token, CFi over to Fantom.
CyberFi is an Intelligent Automation Platform (ITAP), with the aim of automating many of the interactions that we experience on DEXes. Some of those features include:
- Automatic Order Execution based on Price Divergence Indicators (PDI): this is akin to a limit order on a CEX, this feature will be enhanced to be based on the Best Trade Value (BTV), which will search several exchanges for the best price and smallest fee available.
- PDI Change Speed (PDICS) for Highly-Volatile Assets: we've all experienced the feeling of checking a chart, only to realize that a token has fallen sharply in a short span of time. PDICS will allow a user to set up specific parameters to make a sale based on volatily. As an example:
- If "token X" price makes a "-20% change" in the span of "20 minutes".
- Then initiate "Sell Order" of "Max Balance" in pair "Token X/ETH".
CyberFi aims to provide users with the ability to automate their decentralized finance activities through a visual programming interface, allowing them to create strategies for farming that would work autonomously. For example, a user could utilize the tools in CyberFi to minimize losses that occur when participating in high-risk farming. Think of a new DeFi project that pays out thousands of APR for staking an LP with Token-USDC. Generally, these high inflation projects pay out nicely, but come with the consequence of swift price declines. Automation of entry and exit points could allow you to reap the benefits, but minimize the negatives of high-risk farming.
CFi is the core token of the ecosystem, which is used to cover trading fees, allows access to CFi exclusive products, and governance.
This project isn't something I've invested in, but the ideas behind it sound intriguing. Unfortunately, I am priced out of Ethereum, so this isn't something for me. Still, if you happen to be on SpookySwap (Fantom), you can stake xBOO to earn CFi soon: https://vote.spookyswap.finance/#/proposal/QmRbFDpSbvCnznawkhxtX6Z6dCZmDEsnhLZ7umNee6XNwV
Nexus Protocol (Terra)
Nexus Protocol is a fascinating application, and one of the main inspirations behind this series. Nexus aims to the gateway for yield-generating products on Terra. This will be done through Nexus Anchor Vaults, where users can deposit bLuna (bonded LUNA), or bETH (bonded ETH) to earn optimized rewards from Anchor borrow.
The way that Nexus Protocol is special is that it automatically changes your LTV (loan to value) ratio in order to maximize rewards while minimizing your risk of liquidation. This is done by three modes that run concurrently:
- Optimal Mode
- Safe Mode
- Emergency Mode
To understand these a bit better, it is important to understand how Anchor Protocol (or any other application that allows you to deposit and borrow assets on it) liquidates a user. Essentially, the application determines whether liquidation needs to occur based on the price data for the collateral that it receives from a price oracle. Anchor, specifically, receives price data every 15 seconds from the Terra blockchain/ This data is accumulated and weighted, and then the price data is updated every 30 seconds.
Optimal Mode functions by front-running the Anchor oracle, updating price data every 15 seconds. This allows Nexus to catch on to price changes before Anchor, adjusting the LTV ratio accordingly.
Safe Mode activates in the event that the Nexus price oracle were to fail, switching over to Anchor's price oracle. Since Nexus can't know the price data before Anchor does, the LTV ratio will be reduced to compensate for that increased risk.
Emergency Mode activates in the event that the Anchor price oracle were to fail. When the Anchor price oracle fails, liquidations are paused. In the event that prices decline while this pause is in effect, a mass liquidation can occur. In the event of the Anchor price oracle failing, the LTV ratio will be reduced even further.
Nexus sounds fascinating. As a degenerate that enjoys borrowing against his crypto (but having learned from his past mistakes, I promise), the ability to reduce your liquidation risk significantly is fantastic. Hopefully Nexus finds itself going cross-chain sooner rather than later, as I'm sure it would find a lot of applications interested in implementing it.
Anyway- hopefully you found this useful, and will check out the next post coming around on Thursday. Feel free to tell me if you have any thoughts about any of these projects, or have any questions that may have come up after reading through it!
Posted Using LeoFinance Beta