DefHold is a non-inflationary DeFi ecosystem aiming to provide yield generating investments’ strategies to long-term crypto holders in both markets’ pump and dump. Nowadays, the most common way to secure assets during market dumps is converting assets to stable coins which can thereafter be staked and/or farmed into various DeFi protocols generating yields on the underlying assets.
However, currently there is no incentive to hold cryptocurrencies during market’s dumps other than averaging down his purchase price. Therefore, to reward holders with accurate portfolio’s and own liquidity’s management, DefHold aims at implementing new autonomous yields generating solutions.
The native token of the DefHold ecosystem, called DEFO, will enable holders to stake or farm their assets into pools with different pre-defined lock-up periods. However, all these pools will offer the ability to stakers and farmers to withdraw their assets at any time by applying an early withdrawal fee (“EWF”) if the assets are withdrawn before the term of the lock-up period.
These EWF will form the first revenues’ stream for stakers and farmers who have accurately managed their portfolio and own liquidity’s requirements. Indeed, an investor managing properly his cashflow forecasts and portfolio allocation will be able to stay within the selected pool until the end of the lock-up period thus avoiding him to pay any EWF. Moreover, it will allow them earning the EWF from people who withdraw their funds due to liquidity requirement or due to market moves’ fears (the latter being mostly known as “weak hands”).
Additionally, a second yield generating mechanism will be implemented to continuously generate income for DEFO stakers and farmers. Indeed, every new product of the DefHold ecosystem will require an entrance fee and apply a profit-sharing on the generated revenues. Both of these income will be distributed to stakers and farmers.
Unlike most of other DeFi protocols existing nowadays, these 2 mechanisms will continuously generate yields to stakers and farmers in a non-inflationary way. Indeed, no additional DEFO token will ever be minted thus distinguishing it from other inflationary tokens which have to continuously mint new tokens to enhance their APY (by the way reducing the market price of their tokens due the demand-supply principle).
NON-INFLATIONARY STAKING & FARMING POOLS
Initially, DefHold will only enable users to stake DEFO tokens or farm DEFO/ETH & DEFO/USDT LP tokens.
The details of the available staking and farming pools can be retrieved at any time on our website: https://defhold.com/
All these pools will be available at any time (i.e. there will be no commencement date). Each investor can join the desired pool whenever he wants. The end of his lock-up period will be calculated automatically by the Smart Contract.
Moreover, each time a pool reaches the lock-up period of a faster pool, investors’ funds will be automatically transferred into the faster pool (in this case the EWF and rewards will automatically change to match those of the pool in which the tokens are transferred).
- For example, an investor stakes DEFO in the 4th pool on 01.01.2021 with EWF amounting to 14.3%.
- On 01.02.2021, the tokens will be automatically transferred into the 3rd pool and EWF will amount to 8.2%.
- On 01.03.2021, tokens will be automatically transferred into the 2nd pool and EWF will amount to 3.5%.
- Finally, on 21.03.2021, tokens will be automatically transferred into the 1st pool and EWF will amount to 1%.
In the future, additional tokens’ pools will be added based on community proposals once the governance will be implemented. Moreover, to increase buying pressure on DEFO and generate continuous yields to the DEFO holders, every additional tokens’ pool will require to stake the amount corresponding to the EWF in DEFO. This mechanism will enable new investors to benefit of the hedge offered by the DefHold ecosystem without having to sell their tokens. In the meantime, it will also offer to DEFO holders a continuous price increase of their tokens thanks to the requirement of owning DEFO tokens to access DefHold features.
As previously mentioned, the DEFO staking and farming revenues will be generated by 3 different streams (EWF + entrance fees + profit sharing). These revenues will be allocated as follows:
EWF revenues allocation:
- 5% to developer fund
- 95% to stakers/farmers according to their share of their respective pool
Entrance fees + profit sharing allocation:
- 5% to developer fund
- 40% to stakers (equally shared between all the staking pools)
- 55% to farmers (equally shared between all the farming pools)
Liquidity has always been a major concern when it comes to trading, especially since DEX appeared. In order, to maintain liquidity levels as high as possible, DefHold has opted for the following solutions:
- Presale will be held by Liquidity Dividends Protocol (LID). 75% of the raised ETH will be allocated to Uniswap liquidity and definitively locked by their smart contracts. This process will enable us to protect our investors against any exit scam concern they might have.
- EWF, entrance fees and profit-sharing are distributed more importantly to farmers to increase their revenues and incentivize them providing liquidity to the DefHold ecosystem.
BUYING PRESSURE & TVL
In order to continuously maintain the buying pressure, thus encouraging and incentivizing holders to join and stay within the DefHold ecosystem, the following features have been implemented:
- Staking and farming EWF aim to increase and maintain the TVL thus decreasing the DEFO circulating supply;
- Non-inflationary staking and farming revenues’ streams guarantee to the DEFO holders that the market price of the tokens will not be affected by an infinite increasing supply;
- Total supply of DEFO will be capped at 12’000 tokens and no further DEFO minting will ever be possible;
- Future tokens’ pools will require to hold the amount corresponding to the EWF in DEFO thus continuously increasing the demand of DEFO tokens.
The details regarding our future presale will be released in due course. As of today, the following information can already be disclosed about the future DEFO presale:
- Presale starts on 18.11.2020, 9:00 AM PST
- Softcap: 300 ETH
- Harcap: 2,000 ETH
- Presale base price: 1 ETH = 1.56 DEFO
- Uniswap listing price: 1 ETH = 1.56 DEFO
- During our pre-sale investors will receive a bonus up to 25%:
0–100 ETH: 25% bonus
100–500 ETH: 20% bonus
500–1,000 ETH: 15% bonus
1,000–1,500 ETH: 12,5% bonus
1,500–2,000 ETH: 10% bonus
- Any unsold tokens will be allocated to those who have invested. For example, if the sale ends at 1,100 ETH the remaining 900 range will be distributed to those who invested in the presale.
- 75% of ETH raised will be automatically transferred into Uniswap liquidity pool together with 19.50% of the DEFO tokens.
- Uniswap liquidity will be locked permanently by LID smart contracts.
- Marketing 2, Team, Airdrop and LID tokens will be time-locked and released at a monthly 10% rate over 10 months by LID smart contracts.
We would like to kindly thank you for taking the time to read our article and for your interest in our project. In case you would have any questions or feedback, we stay at your disposal on our different channels detailed below.
The DefHold team
The information provided herein-above does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat our website’s and communication channels’ contents as such. Please conduct your own due diligence and ensure that you consult your financial advisor before making any investment decisions, as cryptocurrency investment is subject to high market risk. DefHold is not responsible for any form of loss of funds. Hence, DefHold is not responsible for any direct, indirect or consequential losses as a result of your investment decisions.