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The Catcher in the Rye—Defibox

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Jimmy
@joyjimmyfu
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4 min read

Among hundreds of defi projects, you meet those you’ve met. Through tens of years and boundlessness of time, you happen to meet them, neither earlier nor a bit too late. Yeah, Defibox is the catcher I have met in the defi Rye.

DeFi is the buzzword in the block-chain world after Uniswap became the popular star in block-chain. Majority of DeFi movement is happening on Ethereum block-chain. While the highly gas fee on Ethereum has demonstrated it is not appropriate to launch defi on Ethereum. Honestly, EOS is the best block-chain for defi, however the price of EOS is criticized by lots of crypto holders. If you are EOS holder, you shall know defibox and participate the defi game on defibox.

What is defibox? Defibox = Uniswap+MakerDAO+AAVE Defibox have three foundation defi protocols - Swap, stablecoin and lending. The swap protocol feature like Uniswap, you can swapping EOS tokens with lightning speed. The USN protocol like MakerDAO, you can generate stablecoin USN by staking EOS. While the lending protocol is same as AAVE, you can deposit tokens and borrow tokens on it. Defibox is a one-stop DeFi shop on EOS.

Swap The SWAP in Defi-world is pretty much the same, including two functions, Liquidity providers and trading. The difference of swaps is how to distribute profit to liquidity providers and traders.
TVL is a critical metrics for all of the swaps. The bigger TVL, the lower Slippage. Defibox reward BOX tokens and Protocol revenue to liquidity providers and BOX holders. This is a best practice to motivate more and more liquidity providers to involvement. We can building ‘LEGO blocks’ on defibox. If you are an EOS holder, you can deposit half quantities of EOS as pledge, and borrow USDT or BOX on Lending protocol. Then you put the other half EOS and USDT or BOX you borrowed to EOS/USDT or EOS/BOX pool to gain the reward of BOX. If you are an USDT or BOX holder, you can do the same thing mentioned above. Are we playing LEGO game of what we participate on defibox?

We can Bullish or Bearish on defibox If you are EOS holder and when there is a good timing you bullish EOS. You can stake EOS to generate USN, and buy more EOS with USN to share the EOS price rising. If you are USDT holder and when there is a good timing you bearish EOS. You can deposit USDT on lending to borrow EOS, and swap more USDT with EOS you borrowed. Thanks to the transparency and high-speed transaction on EOS block-chain, we can do many interesting things.

However, as an SWAP defibox have to take actions to increase the TVL, as well as to make swaping more actively. In the short-term, launching the single-token liquidity providing is a good way to lift the TVL.
In the long-term, defibox can optimize the AMM model to minimize the impermanent loss which liquidity provider care most. Regarding to the AMM model optimization, I think defibox can learn experience of eCurve. eCurve make a combination of function 「X*Y=K」and 「X+Y=K」. With the optimization of the AMM model, we can get wider range of price with lower slippage.
Create a relatively flat curve near the equilibrium point of the curve, similar to the constant sum function, to keep the price relatively stable, while tilting the ends more, similar to the constant product function, so there is fluidity at each point of the curve.

USN USN is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the US Dollar. You can stake EOS to generate USN. USN protocol have a quickly debt liquidation threshold with biding system. This biding system ensure the protocol low risk on debt. When the ratio of token value to collateral value greater than the liquidation ration (the health factor<1). If you borrow tokens, you shall be care of the health factor timely. Currently, the USN/USDT exchange rate is tightly anchoring in the range of 0.95 to 1.05. However, the USN scale is very small compared to DAI. Honestly, USN is on EOS defi and DAI is on ETH defi, that is one reason of the scale difference. How to lift the scale of USN? In short-term, rising the mining weight of BOX/USN or USDT/USN is an effective approach to motivate people to be liquidity provider.
On one hand, Launch more trading pairs with USN could be next step to ensure more USN precipitate in the liquidity pools. On the other hand, Multi-collateral system developed to ensure the USDT/USN exchange rate more stable, so that more investors willing to hold USN as a truly stable-coin. In long-term, Defibox can migrate the USN protocol to BSC or ETH to enlarge utilization of USN.

Lending Defibox lending protocol is a pool-based strategy lending system different to the decentralized P2P lending strategy (direct loan relationship between lenders and borrowers). Lend/Borrow index is variable according to the utilization rate (the utilization of the deposited funds). Actually, the index curve is consist of two curves. When the utilization rate is below 80%, the curve is very flat which means the lend/borrow index is low and insensitive. While the utilization rate is over 80%, the curve is very steeply which means the lend/borrow index will growing fast as the utilization increased. How to enlarge the scale of the lending/borrowing? Kind of Yearm finance protocol and project is a good way to enlarge the scale. As we all know, YFI automate the process of switching capital between lending platforms in search of the best yield offered, as the lending yield is a floating rate rather than fixed rate. Funds shifted between dYdX, AAVE, and Compound automatically as interest rates change between these protocols.  Currently, thereare three lending protocols on EOS chain, pizza, SX Vaults and defibox. YFI can active the utilization of the deposited funds on all of this three lending protocols. So defibox is an very interesting project I strongly recommend you to game in. Yo can enjoy the innovation as well as prosperous profits. I truly believe defibox will make EOS great again!
Let us “Play” defi, “Build” block.

This an article for 2021 defibox Global Essay Contest. PC: https://defibox.io/activity/article ; DAPP: https://defibox.340wan.com/activity/article ;

Posted Using LeoFinance Beta