What’s after the DAOs apocalypse?
Disclaimer: I am not a financial advisor. The content for this article is purely for educational/research purposes only and is merely based on my personal opinions.
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2021 has been a wonderful year for the defi industry, there is an ever-increasing number of people investing in defi. Therefore, with more people joining, more innovative and interesting projects also start to surface to attract all the investors’ money. And with the disastrous DAOs apocalypse, investors became more careful about their next investment, trying to find out the less risky but more profitable opportunity. With that, this will be my personal take on the upcoming defi trend for new investors to participate in.
Node-As-A-Service (NAAS)
Many projects have started using node-like systems to attract investors without actually utilising node operation. Instead, these projects use an ETF-like system for their projects whereby funding from the investors is being used to invest in others Defi projects that will bring consistent high yield returns. These projects have different tier structures, each has fixed investment amount and fixed returns. The higher investors choose, the more returns they will receive.
The most well-known projects are StrongBlock, Thor Financial, Cubo Money and Comb Financial. These are the projects which I am currently keeping in view, I am a not financial advisor, and I have not invested in any of these projects. However, I personally think these projects are worth checking out as they are passing my personal Defi projects evaluation.
Algorithm Stablecoin
Some of you might know it as Tomb Financial or Tomb Fork. The reason why it is called algorithm stablecoin is that the price of the governance token of the project is being pegged to the price of the chain token or pegged to USD via seigniorage. For example for tomb financial, the governance token is Tomb and Tomb will be pegged to the price of the Fantom token of the Fantom Opera chain via seigniorage. The protocol will adjust the supply of Tomb, which varies the price until it matches with the price of Fantom token and at the same time produces a profit for investors.
Some of the notable algorithm stablecoin projects that I am currently keeping in view are Tomb Financial and ChargeDefi.fi. These developers really contribute a lot of their time and effort in building the projects, I do have a plan to invest my money in these projects in the future and I hope they find success as well.
NFT Games
NFT Games or GameFi or Play-To-Earn has gained a lot of traction over the past year. Although it might not be as fun as the AAA title game, Gamefi has turned a boring defi yield farming application into a slightly more fun and engaging way to keep investors from leaving. Introducing NFT into their game, incentify investors to collect more NFT thus increasing their earnings and the cycle continues.
However, I did not participate in any Gamefi projects but I am looking at certain few interesting games such as Defi Kingdom, Crabada and Zoo Crypto World. Perhaps in the future, I might consider joining after earning more money.
New Generation of Defi 2.0
Despite the downfall of DAO projects, Defi 2.0 is still going strong with new projects such as Titano Finance. A new generation of defi 2.0 projects, this project uses high buying and selling fees to generate revenue for the project while providing high APY up to 102,483.58%, but keep in mind this high APY applies to a number of tokens, not the price. With more and new Titano Fork coming out like Libero Finance and Sphere Finance, investors should exercise caution before investing and not get attracted by the high APY.
Drip Network
Drip network is kinda its own category, mainly because of its unique protocol. I have never seen any protocol similar to the drip network. Drip network has a fixed number of tokens and every time investors join the projects, the initial investment is burned, reducing the number of available tokens thus increasing the token value. With the 1% daily rewards, it is no surprise that more and more investors are coming to participate in this project.
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