Since their creation, blockchain and DeFi have faced difficulties achieving widespread use. Early projects tended to be complex, boring, and overly technical. In recent months, the industry has seen a massive shift in mindset; flashy, easy to use, but questionably useful projects have flooded the scene. There has also been an uptick in nefarious actions including the listing of fake tokens on Uniswap and the apparent attempted exit scam by the anonymous SushiSwap founder.
Despite these issues, many exciting opportunities are arising that may finally help DeFi attain widespread adoption. For example, the recent advent of liquidity mining is revolutionizing the space by incentivizing token market creation, which has historically been a shortcoming of blockchain.
For DeFi to achieve broad use, industry-wide change must occur. Specifically, DeFi projects need to emulate more modern ideals (fun and user-friendliness) while upholding blockchain’s foundational values (transparency, trustworthiness, innovation, democracy, and functionality). In other words, these projects must meld the old and new schools of thought.
We will look at an exciting new project called AnRKey X as an example of which characteristics will help DeFi finally overcome the scalability issues DeFi has faced since its inception. AnRKey X was founded by J.D. Salbego as a way to combine the best of what multiple sub-sectors of the blockchain industry have to offer.
The core function of AnRKey X is to promote liquidity mining, thus helping to resolve illiquidity issues limiting DeFi.
Fun and User-Friendliness
Fun and functionality are not mutually exclusive, but many DeFi projects lack one or the other. Using liquidity mining as a continued example, this process is demanding on the user. AnRKey X turns the liquidity mining process into a game via their suite of m$ports products, merging liquidity mining, LP token staking, yield boosting, rewards, team-based eSports gaming, and NFTs into one platform.
Their first game, Battle Wave 2323, has users compete in opposing “Armies” to try to earn the highest weekly yields. By making liquidity mining enjoyable, it is less likely users will get bored or frustrated and give up.
Innovation
A major strength of DeFi is that many of its projects are open sourced. But while some projects spin off existing codes into something unique, many new projects only change one small thing about the original code. For DeFi to scale, creativity and innovation need to be prioritized – endless similar projects are not going to help the industry grow.
AnRKey X is novel through its gamification through its use of non-fungible tokens (NFTs). NFTs represent something other than an asset, like a virtual item or accomplishment. These rare tokens have surged within the gaming industry, which often uses them to represent virtual items or achievements. However, use cases for NFTs are very limited outside of these games. AnRKey X uses a proprietary Derived Base-Value economic model with its NFTs to further boost, memorialize, and otherwise incentivize liquidity mining. By combining liquidity mining with eSports gaming and NFTs, AnRKey X creates something entirely new.
Transparency and Trustworthiness
One reason blockchain is so revolutionary is that it makes all data transparent and secure.
However, recent DeFi projects have shifted away from transparency and trustworthiness by becoming less decentralized, instead utilizing some sort of central authority. For DeFi to scale, it must maintain users’ trust, which can only be achieved through transparency and decentralization.
AnRKey X upholds is an example of a truly decentralized project, offering full transparency and trustworthiness to its users.
Democracy
Blockchain was created to put the money-generating power into the hands of the people.
Lately, however, DeFi has seen the emergence of market dominators like “rug pullers” who yank massive values from projects, upending it for everyone else. There are also “whales” present, who can afford to buy and move coins worth millions or even billions of dollars.
AnRKey X prevents market domination by creating an automated self-balancing fair market value system using their protocol’s Automated Fair Market Economics Logic Theory. These algorithmic parameters underpin its gamification, evenly distributing power and chances of winning across all users.
AnRKey X further promotes democracy by being community-driven; a 20% quorum is required for proposal approval to add pairs for new liquidity pools, and users can submit a proposal for any suggestions to the protocol’s governance channel on Discord. Also, community development coin allocations are available and detailed APIs and SDKs also enable developers to create powerful m$ports™ gaming DApps on their platform, which the community collectively has to approve as well.
Overall, new processes like liquidity mining give DeFi the opportunity to achieve widespread adoption. However, to actually scale, DeFi projects need to balance fun and user-friendliness with innovation, transparency, trustworthiness, democracy, and functionality.
Disclaimer: The author of this post is an advisor to AnRKey X. Please consult your financial advisor before investing in any cryptocurrencies, stocks, or companies as they can pose risks for the average investor. This post is informational in nature and does not constitute financial advice.
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
