The House of DeFi
DeComplicating DeFi with Dot.Finance
K.I.S.S. goodbye to difficult DeFi
If you (like me) are weary of being routinely brain punched by the jargon flinging flittery fists of indecipherable crypto degens ‘explaining’ (pfft) new DeFi protocols, have we got a treat for you.
Spoiler Alert: The following is written by a human, for human consumption. If this content mostly makes sense and your eyes aren’t bleeding in under 5 minutes, you’re on track to divorce complication and commence a hot new romance with Dot.Finance and their refreshingly uncomplicated approach to DeFi-ing. Not kidding.
Until now, the lucrative world of decentralised finance has not exactly been the easiest landscape to navigate. In theory, liquidity pools, staking, yield farming and other emerging DeFi investment tools are within reach of anyone with a smartphone, a smoosh of crypto curiosity and a stash of cash. But in reality, barriers to participation have excluded many who would really like to get involved but glaze over at the complexity.
The team behind Dot.Finance is again on a mission to remove these barriers to DeFi investing. And the icing on the cake is their easier-to-use investment options have embedded protocols to make you more money.
This is no empty claim folks — the team behind Dot.Finance has the pedigree to deliver.
The majority of the Dot.Finance team are OG DeFi royalty. If you familiarize yourself with a little project called Bancor which the majority of the team were responsible for. Bancor is now running with fully decentralized governance, essentially meaning that this team have already done what many project teams are attempting to do for the 1st time. That experience will be a key differentiator between this DeFi suite and others building on Polkadot.
The non-ex-Bancor additions to Dot.Finance’s team are stars in their own right. Their combined credentials and plans for Dot.Finance has attracted a range of heavyweight strategic advisors such as Kal Ali (COO and co-founder of Orion Protocol) and AU21 Capital / Kyle Chassé (Master Ventures).
All involved recognize the current gap on Polkadot for DeFi projects of this calibre and are aligned in seeing the massive potential and technical fit for Dot.Finance’s suite of DeFi applications (DAPPS) to catalyze DeFi on Polkadot.
Bancor created the building blocks of the DeFi ecosystem on Ethereum by inventing the world’s first blockchain-based “AMM” (automatic market makers) and liquidity pools, paving the way for all other versions we see today and the foundation for what has become DeFi. So once Polkadot fully decentralised, the Dev team recognised it was the perfect platform to take what they had started with Bancor even further.
House of DeFi on Polkadot
As seen above, the teams signature move is in delivering sophisticated backend solutions which elegantly simplify a users experience. Their strategic decision to provide DAPPS dedicated to Polkadot takes full advantage of the exponential growth the ecosystem will experience once its parachains come fully online. As projects take up the parachain slots and the demand for DeFi aggregators focused on $DOT swells, Dot.Finance intends to perfectly position itself as the House of DeFi on Polkadot by removing barriers to access, simplifying the actions needed to participate and this will all begin with Yield Farming.
DeComplicating DeFi will explode user numbers
While TVL in DeFi increased from a not too shabby $1billion in April 2020 to $15.8billion in January 2021 and is now sitting at a respectable $65billion even after the recent sell-down, it’s safe to say the barriers to entry suppress the number of individuals participating. Yield farming is the perfect target for DeComplification.
Because it’s painful! Occasionally, excruciating. It literally sucks — time, energy, and if you’re farming with Ethereum, gas fees — for most people. When you aren’t scrambling for the best yields or wading through a sea of new projects coming up, you’re fretting over impermanent loss. It gradually dawns on you (even after months of carefully researching how to do it) that yield farming feels like a bit of a zero-sum game if you don’t have a large amount of capital to farm with. Ethereum yield farming, in particular, has become a space where only whales turn a profit.
But what’s the alternative? Do you want your cash flailing in a zero-interest bank account? Even the stash hidden under your mattress is being nibbled away by inflation bed bugs. You’d really like an easier way to use DeFi protocols to earn the highest returns possible. But as anyone who has tried knows, if you don’t have time to micromanage your positions, it can become oppressively stressful. Sucking gas fees ain’t the worst of it… it sucks away at your life.
“You’re saying I’m damned if I do, and damned if I don’t…”
Well, no. What if there was a third way? Hands up who would participate in a set and forget yield farming system…
Dot.Finance team bets that if the barriers to participation could be disassembled, many many more ordinary people would pile into farming. At its core, yield farming is an awesome way to make your money really work for you. Hence, simplified yield farming, but in a mechanism that works for instead of against you. Maximum results. Minimum effort
… you know where this is going.
If you’re a DeFi newb with your hand up, read on.
And if you’re a DeFi ninja, flaring nostrils deep in farming right now, there’s enough meat on this bone to get you excited too… promise.
So, how DeComplicate DeFi sir?
The Dot.Finance roadmap outlines several other innovations under development for progressive release, but the 3 magic bullets they fire to commence DeComplicated Yield Farming and maximise your gains are:
● A comprehensive DeFi yield aggregator platform on the Polkadot ecosystem
Yield aggregators automatically scour the entire market to find the most profitable deals and execute them for you at the optimal time. Better yields, a world less pain. Working on Polkadot allows the team to develop products with unmatched interoperability on multiple blockchains. And while the Polkadot parachains ramp up, the first Dapps will launch on BSC (much faster transactions and low gas). This is how Dot.Finance is helping grow traction on Polkadot, the team have already partnered with a growing list of projects and secured their commitment to build here too.
● Auto Compounding (yes, you read it here first)
Pancakeswap is the highest volume Decentralized Exchange (DEX) on BSC and one of the top platforms in the space. Dot.Finance is leveraging these strengths for their farmers but adding auto compounding features to their yield aggregator. This means the mechanism auto-compounds your staking rewards by converting them to LP tokens, then staking them as well. The smart contracts ensure your yields are compounding at the optimal rate while also entitling you to a share of the products performance fee — the Pink Distribution.
● PINK Distribution
Pink is the Dot.Finance native and governance token, scheduled to launch mid-2021. Pink distribution works as a multiplier for your usual farming gains by improving the value of the rewards. Auto-compounding and PINK Distribution interact to push your APY even higher.
K.I.S.S.ing goodbye to difficult DeFi
These are evolved earning strategies made possible by the evolution of the DeFi ecosystem. The key here is how Dot.Finance is Keeping It Simple S(illy) and innovatively engineering away difficult DeFi. Just like you don’t need to understand what goes on under the hood to drive a car (thank God), you don’t need to understand the wildly complex smart-contract innovation that makes our Yield Aggregators, Auto Compound and APY amplified returns possible.
You just get to do it easier, and make more money.
Pretty DeComplicated really.
The combination of a team with solid industry credentials building on the stability of Polkadots infrastructure enables you to turn zero-interest earning funds into automatic earners without the pain of other farming systems. Doesn’t matter whether you’ve previously dabbled in yield farming or have never participated before. If you have a basic understanding of DeFi and are curious to access yield farming, Dot.Finance yield farming is poised to be the short attention-spanners answer to decentralised finance.
Big calls? You bet your decentralised decimals they are. And the best thing is it’s all about to happen. Maybe you missed BTC at $60, and maybe you have 101 other crypto regrets stuffed in your back pocket. The alpha is you don’t want to add failing to get on the DeComplicated DeFi train at this tipping point of the journey.