Introducing deFarm - Decentralized Social Investing Protocol
deFarm is a Web3 Social Investing Protocol for On-chain Asset Management. With deFarm, traders can create trading vaults (we call it Farms), continue to trade in their preferred way, enjoy the benefits of monetizing their expertise, and investors can make profits without any further effort.
It's a simple process that makes on-chain asset management accessible to everyone.
I. Introducing
After months of hard work and dedication, today marks a significant milestone for us as we proudly reveal deFarm after putting in several months of diligent work.
Briefly, deFarm is an innovative Web3 Social Investing Platform which will be operated on all Ethereum Layer 2 networks (Arbitrum, Optimism, zkSync, etc.), enabling users to create, manage, and invest in non-custodial funds within a social environment. Incubated by TradeCoinVN and Chainslab, deFarm aims to revolutionize the way people invest in the blockchain ecosystem, making asset management in DeFi more accessible and user-friendly for everyone. Our early investment round is led by K300 Ventures, one of the most reputable venture firms in the SEA region.
deFarm’s launch ushers in a new era of on-chain asset management. The possibilities are endless, and users can explore the full potential of on-chain asset management. Our approach to DeFi allows us to offer users a futuristic platform that is both intuitive and user-friendly. We understand that users are looking for an easy-to-use, exciting experience when engaging with our performance, security and reliability, and that’s precisely what we strive to deliver.
What we BUIDL?
As a Web3 protocol, we strive to create a mutually beneficial ecosystem where all parties can achieve their goals. By leveraging the power of blockchain technology, we are able to create a secure and transparent environment that offers Traders with increased funding, Investors with higher returns, and our affiliated DEXs with greater trading volume and liquidity.
We pride ourselves on being at the forefront of the DeFi space by utilizing cutting-edge concepts “DeFi Vaults” and “Vaultification” trends. We offer a range of products designed to cater to the diverse needs of users within the DeFi ecosystem:
Single Farm is a unique single trade DeFi vault. Farm managers manage and investors crowdfund one trade per vault. One Farm = One Trade.
Seasonal Farm is a pre-set duration DeFi asset management vault, kind of hedge funds but in decentralization.
NFT Farm is an on-chain NFT social investing method that allows retail investors access to blue-chip or high value NFT assets.
Seedhouse is an on-chain pre-market marketplace enabling investors to participate in early investment activities of startups.
The concept behind the Farm is relatively simple. A group of individuals pools their assets together into a farm, which is then managed by a designated Farm Manager. The manager is responsible for executing investment strategies using various decentralized exchanges (DEXs) that are available through the platform’s partners.
It is important to note that the Farm is non-custodial, which means that the Farm managers do not have access to the assets that are held within the pool. Instead, they are only able to interact with the assets by using specific dApps and smart contracts that are authorized by the platform. This ensures that the assets are kept safe and secure, and that the managers are not able to make any unauthorized transfers or withdrawals.
Of course, with any investment, there is always a certain level of risk involved. To manage this risk, each Farm has a threshold loss level that is determined by the manager. If the value of the assets held within the pool drops below this level, the smart contracts will automatically liquidate the farm's positions and return a portion of the assets to the investors. This ensures that the investors are protected from significant losses, while still allowing for the potential for significant gains.
II. Our Thesis
Incubated by crypto OGs, we are well aware of the problems within the industry in the last few years. We committing to avoid falling for the same problems, while keeping our protocol under governance following the thesis below:
User-friendly experiences
While DeFi and DEXs offer users incredible benefits and upside compared to centralized institutions, its adoption is still hindered by usability issues. Therefore, it is essential to develop dApps with an easy-to-use UX that can attract and retain users. This means creating intuitive interfaces, providing clear instructions, and minimizing technical jargon.
For Investors, this means minimize the steps that they have to take to invest with deFarm, and make it clear so a 5-years old can understand how to do it.
For Manager, this means removing the coding barrier. All the processes to manage a farm's assets are simple and intuitive.
This is the key product design goal that our team is going for, especially when it comes to pushing new products in the future.
Decentralization and incentivize mechanisms for network participants
The key thesis of community building in the context of the deFarm Protocol is that all participants within the ecosystem have a shared interest in its success and growth. This means that the incentives and rewards within the system are designed to encourage behaviours that benefit the entire community, rather than just individual stakeholders. By aligning the incentives of all stakeholders with the success of the ecosystem as a whole, the community-centric design creates a self-reinforcing cycle of growth and adoption that benefits everyone.
In which, Trader/Fund Managers participation initially drives economic activity on the protocol, creating vaults to present their biases and getting crowdfunded. They play a key role within the protocol, in generating income for the Retail Investors, contributing trading volume on our Partners, bringing yield as rebate fees to the treasury and raising interest of token holders on DAO governing process.
An increased involvement from Traders leads to heightened protocol efficiency. This is due to the fact that as the value of Investors getting deposits on deFarm increases, more contribution to Partners as more trading volume and users, and resulting in a greater amount of rebate value. As a result, it becomes more efficient to sustainably grow the virtuous economic wheel.
This approach can create value in the economy for each party, pushing protocol values’ forward.
Trader/Fund Managers are incentivized to trade so through the provision of trading fee discounts and rewards for contributing to Protocol Partners, and earn more fees from the trading process for Retail Investors.
Retail Investors are encouraged to provide capital to the Manager through the prospect of earning high returns on their investments without much exposure on trading knowledge and skills. By attracting more investors, the protocol can grow at a faster pace and provide more benefits to the community as a whole.
Protocol Partners can leverage the protocol’s liquidity and user base to expand their own ecosystem, while also contributing to the growth of the deFarm Protocol. As the trading volume increases, the liquidity depth grows, leading to tighter spreads, lower slippage and a more efficient market for all traders. And in exchange for these contributions, partners should distribute special rewards in the form of a share of the trading fees generated by our integration.
Every party is involved, and creates benefits for deFarm, then gets incentives accordingly.
deFarm DAO is responsible for making important decisions about the protocol's future. By involving all stakeholders in the decision-making process and ensuring transparency and accountability, the DAO can create economic value by building trust and confidence in the protocol, which gives the community a voice in direction and incentivizes active participation within the ecosystem. We understand that decentralization is not always good, and it cannot be achieved in the shortest time. But deFarm DAO is the starting point, and as our community grows, it will be perfected through time.
Sustainability and Hyperstructure
In recent years, the world of DeFi has been dominated by the concept of reward through the issuance of new tokens. This has been the primary way that protocols incentivize users to contribute liquidity and maintain market efficiency. However, this approach has faced criticism due to its inflationary effect on the value of the token and the potential for over-reliance on rewards as the sole driver for participation.
The argument is that the reward structure utilized by old-gen DeFi protocols known as Liquidity Mining Program, where its users receive all newly created tokens from the protocols, is no longer suitable at this market cycle and later on. Real Yield is an alternative approach to incentivize all participation that focuses on generating income for token holders through actual usage and activities of protocols.
Instead of relying on the issuance of new tokens, deFarm rewards users with a portion of the yield generated by the protocol activities. By focusing on generating real income for token holders, deFarm is aiming for sustainable growth rather than short-term gains and changing the way people think about the value and purpose of cryptocurrency. Sustainability is the key.
In the long run, we hope to make deFarm to become a hyperstructure dApp.
Hyperstructure is a new type of infrastructure that runs on blockchains and is characterized by their ability to run for free and forever without maintenance, interruption, or intermediaries. deFarm protocol can run forever, with little maintenance, abiding by the rule of code. (Code is law)
Future proof
As the blockchain industry is still in its nascent stage and constantly evolving, future proof product design is extremely important. dApps that are built with current technological capabilities but fail to anticipate future advancements may quickly become obsolete, and developers may need to undertake significant reengineering efforts to keep them relevant.
By implementing and considering scalability, interoperability, and security needs of our dApps in the early development stages, we make sure that we can adapt to changes in the future. Cross-chain and other Layers 1 integration will be adopted easily and safely in the long run.
III. Our Future
We’re still at the beginning of our journey. deFarm is here to demonstrate a strong commitment to innovation and growth in the DeFi space. Looking ahead, the future of deFarm is likely to be characterized by continued growth and expansion. As the platform attracts new users and expands its global reach, it will be able to offer new and innovative products that cater to the evolving needs of the DeFi community.
The deFarm roadmap outlines three planned phases as follows:
The first phase Base Layers Construction focuses on completing the product framework, introducing key features and products, and open-testing before the launch of the mainnet and token. Next phase, Business Expansion, the focus is on enhancing compatibility and performance, developing new features and expanding the user base, reaching out to global. The third phase, Self-Sustaining and New Features Integration involves integrating new features, developing new revenue streams, and becoming self-sustaining, with a goal to create an open platform, enabling endless possibilities for our users.
The future of deFarm looks bright. With a strong commitment to innovation, a focus on user experience, and a willingness to explore new expansion, deFarm is well-positioned to continue its growth and make a meaningful impact in the DeFi investing.