Thanks to the emergence of new smart contract platforms (like decentralized finance), Ethereum yet again became the most popular kid on the crypto block in 2020.
Ethereum has countless DApps, but InfinityDefi (INFI) has caught our eye because it has been soaring wild.
What is INFI?
INFI is the ecosystem token of InfinityDefi. INFI holders can participate in project management and control its financial risks, sharing project dividends in return, which serves for the stability, transparency, and efficiency of the protocol. Like Compound, InfinityDefi also does decentralized lending with deposit interest and collateralized loans.
InfinityDefi beats the traditional DeFi lending with:
- low pledge ratio (10 to 20% lower than mainstream platforms)
- cross-platform secondary loans (use your collateral from other platforms for secondary loans on InfinityDefi)
- low interest on loans (10% lower than the mainstream average)
- high interest on deposits (higher than the mainstream average)
- low fees
- MVA loans (multi-value-added loans: when your collateral currency value increases by 33%, you can borrow the value-added part)
- a wide range of supported currencies (Dai, USDT, USDC, TUSD, BUSD, HUSD, HT, and OKB)
What rights does INFI entitle to?
INFI governance rights include:
- addition or removal of a cryptocurrency supported for collateral;
- adjustment of redemption and liquidation fees;
- adjustment of pledge ratio and interest rate;
- polymerization Pool profit distribution;
- selection of nodes for price feeder;
- triggering of the emergency mechanism and shutdown;
- issue of InfinityDefi derivatives;
- launch of InfinityDefi operations, maintenance, and marketing.
How to get INFI?
INFI total supply is limited to 21 million tokens 30.5% of which is reserved for conversion to PPT (InfinityDefi’s equity token).
Reserve for the future derivatives applications: 39.5%
Community, market: 15%
White List: 5%
At project launch, users can apply to join InfinityDefi White List and get INFI.
During the first 96 hours after the launch, users have special PPT rewards that can be exchanged to INFI. After the event, PPT is distributed only for deposits, collateralized loans, and secondary loans.
InfinityDefi Foundation will not keep any INFI and will give up all voting rights. Independent team members will have the voting rights.
INFI soars. What valuation model backs it?
InfinityDefi is similar to Compound, MakerDAO, and Aave, but is more competitive.
As of 08:00 UTC Sep 30, 2020,
the price of Compound’s COMP is $135, circulating market cap is $436.9 million
MakerDAO’s MKR is priced $520, circulating market cap is $469.9 million
Aave’s LEND is priced US$0.53, circulating market cap is $671.6 million
Trend analysis: MKR and COMP are not worth investing before changing their tokenomics. LEND is risky. Users should diversify investments.
Vertical analysis of pros and cons:
MakerDAO (MKR): repayment of Dai (USD) loans incurs the Stability Fee of X% (centralized decisions). According to the Stability Fee, MKR is burned and Dai is deposited to DSR. MKR is able to issue additional tokens to manage the liquidation risks. MKR is currently the basis for Compound / Aave funds. Users can only deposit limited collateral and can only lend the platform’s own USD stablecoin DAI. Its net interest rate is expressed as the Stability Fee.
Compound (COMP): This token’s only rights are voting on changes in Compound protocol rules. The token has been released recently. COMP is distributed to users based on their deposited/borrowed assets.
Aave (LEND): 0.025% interest on loans (0.09% on flash loans), 20% is paid to the platform and 80% is used to burn LEND. Good flat and floating interest rates. Great flash loan platform.
InfinityDefi (INFI): Floating deposit and loan interest rate, low pledge ratio, low interest on loans, cross-platform secondary loans. INFI is the tool for voting and ecosystem management.
Instead of a summary.
INFI has the potential to reach COMP’s price and a $1B market cap.
InfinityDefi White Listing has Started:
Join the INFI Community: https://t.me/infigroup