PRESS RELEASE
Printed August 21, 2023
Because the second DeFi was born, now we have been discussing decentralization and safety, and the hopeful phrase written by Satoshi Nakamoto, which embodies the spirit of blockchain, has progressively turn out to be a actuality with the regular progress of DeFi. However finally, the core of DeFi has at all times been about producing income, and making nearly all of liquidity worthwhile. That is crucial sensible drawback that DeFi at the moment faces.
After DeFi Summer time, customers are now not going loopy for altcoins that promise exceptionally excessive returns. Actual DeFi initiatives have to have large liquidity and provide substantial and steady earnings to attain that. It is extra like conventional finance funding, the place prime initiatives may give you over 20% annual return on billions of {dollars}. That is the sort of revenue mannequin that DeFi is thought for and that individuals settle for.
However in right now’s atmosphere the place giant initiatives are continually collapsing and liquidity is additional drying up, with out the existence of aggregators, many small initiatives would hardly have an opportunity to outlive, not to mention present important returns. The market additionally appears to haven’t given these initiatives a lot alternative for a restoration. In such a state of affairs, DeFi is now deeply trapped in a monetary predicament.
As a decentralized or perhaps a blockchain enterprise card, there isn’t any doubt concerning the significance of DeFi. Naturally, there are numerous initiatives making enhancements and fixes. This text will change views, utilizing the decentralized perpetual contract platform L7 DEX to increase from established initiatives to new ones. Let’s examine how these up-and-coming derivatives deal with the issue and resolve the DeFi liquidity disaster in their very own method.
Ranging from the foundation, optimizing liquidity.
There are lots of causes for DeFi liquidity drying up. From an exterior perspective, up to now two years, the yields of conventional monetary belongings comparable to US bonds and shares have been constantly rising, surpassing a 5% yield curve at one level, which led to extra belongings being shifted again to the actual world for revenue. From an inner perspective, the shrinking returns of DeFi itself can’t be underestimated. Based on DeFi Llama knowledge, DeFi yields have dropped to a report low of two%, even decrease than financial institution deposit rates of interest. For many individuals, that is nearly unprofitable. Subsequently, customers naturally turn out to be unwilling to tackle extra dangers whereas solely getting decrease returns in comparison with conventional monetary investments.
The important thing to fixing this drawback lies in restoring consumer confidence, boosting their enthusiasm for participation, and offering them with extra viable and dependable revenue fashions. To attain this, L7 DEX has adopted a three-step technique: utilizing NFTs and an environment friendly financial system to make sure a steady supply of liquidity, creating deeper liquidity swimming pools; constantly innovating mechanisms to make sure steady progress in platform and consumer income; increasing the platform by using liquidity and IEO to advertise income streams diversification.
NFT+financial system, offering a steady circulate of liquidity
DeFi liquidity depends on individuals offering and collaborating collectively. In an effort to encourage world participation, L7 DEX doesn’t undertake the standard neighborhood administration and organizational construction utilized by conventional DeFi initiatives. As a substitute, it takes a extra artistic strategy that aligns with the present Web3 consumer habits: combining NFTs with an environment friendly financial system.
Within the early phases of the undertaking, L7 DEX makes use of NFTs as cross playing cards and staking vouchers. Customers who maintain NFTs robotically turn out to be a part of the early neighborhood. These NFTs are additionally key components for incomes early rewards. After staking the NFTs, customers can earn income. As a result of deep integration with the financial mannequin, customers staking NFTs may also obtain LSD platform tokens primarily based on time weighting and NFT attributes. It is a core solution to purchase L7 DEX platform tokens within the early phases.
Mixed with an efficient neighborhood referral mechanism, this method with objectives, income technology, and neighborhood engagement has introduced a major quantity of liquidity to L7 DEX and has turn out to be an necessary assist for its growth.
Technological Innovation, Secure Income
‘Creating wealth’ can’t be separated from technological breakthroughs and product innovation, particularly for a decentralized derivatives platform. As L7 DEX develops its neighborhood, it additionally focuses on technological refinement, innovatively adopting low slippage, excessive aggregation, and a extra steady PvP AMM mechanism as key components for perpetual contracts. This efficiently avoids and solves the present issues within the perpetual contract DEX market, comparable to issue in putting orders, shallow depth, poor stability, and inconvenient operation.
The established neighborhood will turn out to be the primary customers for contract merchandise. It can’t solely resolve the issue of an absence of early customers confronted by most new initiatives but in addition present a greater testing atmosphere for the product. It’ll additionally convey a substantial quantity of transaction price income on the preliminary stage of product launch, making certain that the three parallel product traces can present a extra steady supply of earnings for the platform and customers. On the similar time, progressive merchandise will appeal to extra customers to hitch the neighborhood, forming a brand new growth trajectory.
Aggregating Property, Empowering Web3
Most DeFi initiatives’ platform tokens are used nearly solely for governance and lack practical and efficient functions. In L7 DEX, this phenomenon can be modified by liquidity + IEO, making LSD a really application-oriented and priceless aggregated asset, thereby fixing the present drawback of DeFi belongings missing efficient worth assist.
Within the mid-term growth of the platform, customers have earned a substantial quantity of LSD by NFT staking and liquidity staking. At this level, numerous strategies comparable to undertaking buybacks, staking governance, and the consumption of the financial mannequin itself have successfully achieved the deflation of LSD. Nonetheless, this doesn’t resolve the issue of the continual improve in LSD circulation, nor can it additional impart LSD extra sensible worth.
To unravel these issues, L7 DEX first focuses on liquidity and collaborates with present high-quality Web3 initiatives available on the market to determine Farm mining swimming pools. This deepens cooperation and gives customers with extra worthwhile alternatives. To take part in these initiatives, customers want to make use of LSD because the core asset and add it to the liquidity pool. The collaborating initiatives themselves additionally have to pay or stake extra LSD to achieve additional growth alternatives. This mix not solely significantly improves the circulation effectivity and utilization of LSD but in addition naturally achieves efficient deflation of LSD in numerous sensible functions.
One of many methods to actually tokenize LSD and maximize its circulation is thru IEO (Preliminary Trade Providing), by investing in and incubating a lot of high-quality Web3 initiatives. This helps maximize the circulation of LSD, by steady funding and environment friendly turnover, making LSD a platform asset like ETH and BNB. This strategy goals to maximise consensus and liquidity, and in addition solves the issue of customers not with the ability to earn excessive returns by DeFi.
Ready for a bull market shouldn’t be the one resolution.
From an exterior perspective, numerous narratives emerge and numerous scorching matters come and go, seemingly indicating that aside from ready for a bull market, there isn’t any different solution to addres the ailment of DeFi. Nonetheless, by a easy understanding of L7 DEX, we will nonetheless break by one after the other when it comes to consumer, product, scalability, and yield mixture by steady innovation of assorted derivatives, turning this DeFi protection battle from passive to lively.The core that means of DeFi’s existence is to generate income for customers, particularly nearly all of customers. Underneath this purpose, initiatives which might be now not indifferent from customers and now not idle will construct a real Web3. Extra initiatives like L7 DEX will make the hope implied in “The Instances 03/Jan/2009 Chancellor on brink of second bailout for banks” now not distant however an achievable future.
Media Contact
Firm Title: L7 Labs
Contact Particular person: Lucas
E-mail: Ship E-mail
Nation: United Arab Emirates
Web site: www.l7dex.finance
