We have witnessed the proliferation of “DeFi 3.0” - a.k.a FaaS(Farming as a Service) projects in the past few weeks.
There is a long list of “DeFi 3.0” projects, including:
Cross Chain Farming (http://www.ccfdao.com/) Multi-Chain Capital(https://mchain.capital/) Empire Capital Token(https://www.ecc.capital/) D3 Protocol (http://www.d3protocol.io/) Reimagined Finance (http://www.reimagined.fi/) All Coins Yield Capital (http://www.acy.capital/) Alpha Brain Capital DAO (http://www.alphabraincapital.io/) Aggregated Finance (http://www.aggregated.finance/) The Chads Club (http://www.thechadsclub.com/)
And the list is still growing fast.
What’s Farming as a Service?
The projects listed above have a few things in common:
Transaction Tax. Every buy and sell transaction would take a high tax, e.g. 10% - 12%.
Token burning. Some of the tax will be burned and some will be added to the liquidity pool.
Dividend. Some of the tax will be returned to the token holders as dividends.
Cross chain farming. Some of the tax goes to the project vault then be used to farm across many chains, e.g. BSC, Fantom, Ethereum, etc.
For example, in the “Cross Chain Farming” project, the 12% tax is divided evenly in 4 parts:
Comparing with yield farming, which asks users to deposit native tokens, e.g. ETH, BNB, USDT, etc. to single asset pools or LP pools, then rewards users with interests & platform tokens, the PaaS projects require users to buy the platform tokens and hold them in the wallet.
Each project would deploy its own farming strategy on multi chains, and to balance the benefit and risk, the farming strategy is usually a combination of high risk, median risk and low risk products. Taking Reimagined Finance as a sample, it uses 40% of the capital to farm on Fantom Curve, 30% on TOMB - a long running algorithm stablecoin project with 1.4 billion tvl and 6000% APY, and another 30% on MidasDAO - an OHM fork with 39 million tvl and 11,241% APY.
Benefits
FaaS simplifies the farming process. Users don't need to spend time to find the best APY, or to understand how to bridge assets across multi chains. The service would take care of it. Users just buy the token then enjoy the dividends.
Token value reflects the farming returns. If the farming strategies keep getting high APY, then people would be very likely to hold the token or even buy more.
Passive income. As part of the transaction tax will be given back to token holders to incentivise people to keep holding the token.
Risks
As the only input of the treasury is the transaction tax, users won’t be able to get much benefit when the buying power is weak. And if the users lose confidence and patience then start dumping the token, a death spiral will begin.
The burning and dividend mechanism is just another form of high-risk games, e.g. Fomo3D, just.game, tronex.net. Essentially, each user’s income comes from the investment of other users who join late. The more users join after you, the more you will get. However, as the treasury highly relies on the buying power, the story of passive income is not endless. Users need to keep in mind that “If you think you are not the one who loses money on a DeFi application, then you better know who he/she is.”
With higher APY comes higher risk. The FaaS protocol would suffer a lot when the token price of underlying products dumps.
Smart contracts themselves are not without risk. We have seen many hacks and rugs in the defi world, and even with the audit report, there’s no guarantee that the project won’t be hacked. Otherwise, the $611 million hack on Poly Network wouldn’t have happened.
Summary
Basically, The FaaS protocol is mainly a combination of pyramid scheme and cross chain farming. The term, “DeFi 3.0”, is just a meme and has nothing to do with the “DeFi 2.0” projects, which focus on Curve War and protocol-owned liquidity.
We have witnessed the proliferation of “DeFi 3.0” - a.k.a FaaS(Farming as a Service) projects in the past few weeks.
There is a long list of “DeFi 3.0” projects, including:
Cross Chain Farming (http://www.ccfdao.com/) Multi-Chain Capital(https://mchain.capital/) Empire Capital Token(https://www.ecc.capital/) D3 Protocol (http://www.d3protocol.io/) Reimagined Finance (http://www.reimagined.fi/) All Coins Yield Capital (http://www.acy.capital/) Alpha Brain Capital DAO (http://www.alphabraincapital.io/) Aggregated Finance (http://www.aggregated.finance/) The Chads Club (http://www.thechadsclub.com/)
And the list is still growing fast.
What’s Farming as a Service?
The projects listed above have a few things in common:
Transaction Tax. Every buy and sell transaction would take a high tax, e.g. 10% - 12%.
Token burning. Some of the tax will be burned and some will be added to the liquidity pool.
Dividend. Some of the tax will be returned to the token holders as dividends.
Cross chain farming. Some of the tax goes to the project vault then be used to farm across many chains, e.g. BSC, Fantom, Ethereum, etc.
For example, in the “Cross Chain Farming” project, the 12% tax is divided evenly in 4 parts:
Comparing with yield farming, which asks users to deposit native tokens, e.g. ETH, BNB, USDT, etc. to single asset pools or LP pools, then rewards users with interests & platform tokens, the PaaS projects require users to buy the platform tokens and hold them in the wallet.
Each project would deploy its own farming strategy on multi chains, and to balance the benefit and risk, the farming strategy is usually a combination of high risk, median risk and low risk products. Taking Reimagined Finance as a sample, it uses 40% of the capital to farm on Fantom Curve, 30% on TOMB - a long running algorithm stablecoin project with 1.4 billion tvl and 6000% APY, and another 30% on MidasDAO - an OHM fork with 39 million tvl and 11,241% APY.
Benefits
FaaS simplifies the farming process. Users don't need to spend time to find the best APY, or to understand how to bridge assets across multi chains. The service would take care of it. Users just buy the token then enjoy the dividends.
Token value reflects the farming returns. If the farming strategies keep getting high APY, then people would be very likely to hold the token or even buy more.
Passive income. As part of the transaction tax will be given back to token holders to incentivise people to keep holding the token.
Risks
As the only input of the treasury is the transaction tax, users won’t be able to get much benefit when the buying power is weak. And if the users lose confidence and patience then start dumping the token, a death spiral will begin.
The burning and dividend mechanism is just another form of high-risk games, e.g. Fomo3D, just.game, tronex.net. Essentially, each user’s income comes from the investment of other users who join late. The more users join after you, the more you will get. However, as the treasury highly relies on the buying power, the story of passive income is not endless. Users need to keep in mind that “If you think you are not the one who loses money on a DeFi application, then you better know who he/she is.”
With higher APY comes higher risk. The FaaS protocol would suffer a lot when the token price of underlying products dumps.
Smart contracts themselves are not without risk. We have seen many hacks and rugs in the defi world, and even with the audit report, there’s no guarantee that the project won’t be hacked. Otherwise, the $611 million hack on Poly Network wouldn’t have happened.
Summary
Basically, The FaaS protocol is mainly a combination of pyramid scheme and cross chain farming. The term, “DeFi 3.0”, is just a meme and has nothing to do with the “DeFi 2.0” projects, which focus on Curve War and protocol-owned liquidity.
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记得小蘋初见，两重心字罗衣跟币圈结缘，是18年初进了家初创公司，公司有三条产品线：硬件钱包、交易所、ICO平台，硬件在深圳生产，我负责开发手机App。钱包不是当时的主营业务，所以产品经理和BA都是其他组的人抽时间搭把手，整个组只有我一个人算是全职。 那段时间压力很大，但也很兴奋。疯狂读书、读源码、画脑图、做笔记，BIP、EIP几乎看了个遍，每天学到深夜，清晨起来去游泳馆游上半小时，到公司喝杯咖啡，就又投入到新一轮学习和coding中。 当时最大的动力，就是一夜暴富的梦想。 期间加入了DappReview的创世群，参加星云开发者大赛，写了人生中第一个dapp。 也加了许多微信群、电报群，还收藏了一个从产品路线、创始团队背景、技术实力……等各个角度给代币打分的网站，每天上去看最近的分析文章，看到打分高的就买一些。跟自己说，鸡蛋不能都放在同一个篮子里。再后来我就出现在了许多维权群里，这是后话。 同事苦心劝我，这个产品好坏，跟币价高低没有任何关系，你看那些17年拉上天的币，哪有什么技术和产品，真能做出东西来的，他发的币也不一定就值钱。奈何我根本听不进去。 每一份白皮书都让我心潮澎湃，仿佛...
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记得小蘋初见，两重心字罗衣跟币圈结缘，是18年初进了家初创公司，公司有三条产品线：硬件钱包、交易所、ICO平台，硬件在深圳生产，我负责开发手机App。钱包不是当时的主营业务，所以产品经理和BA都是其他组的人抽时间搭把手，整个组只有我一个人算是全职。 那段时间压力很大，但也很兴奋。疯狂读书、读源码、画脑图、做笔记，BIP、EIP几乎看了个遍，每天学到深夜，清晨起来去游泳馆游上半小时，到公司喝杯咖啡，就又投入到新一轮学习和coding中。 当时最大的动力，就是一夜暴富的梦想。 期间加入了DappReview的创世群，参加星云开发者大赛，写了人生中第一个dapp。 也加了许多微信群、电报群，还收藏了一个从产品路线、创始团队背景、技术实力……等各个角度给代币打分的网站，每天上去看最近的分析文章，看到打分高的就买一些。跟自己说，鸡蛋不能都放在同一个篮子里。再后来我就出现在了许多维权群里，这是后话。 同事苦心劝我，这个产品好坏，跟币价高低没有任何关系，你看那些17年拉上天的币，哪有什么技术和产品，真能做出东西来的，他发的币也不一定就值钱。奈何我根本听不进去。 每一份白皮书都让我心潮澎湃，仿佛...
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这几天我常常会想： 如果没有在放出IEO消息的时候重仓BNB 然后在出现FTX挤兑时割肉 在半夜醒来看到收购事件又一把梭了进去 最后因为想回本而在SOL快要解锁的时候追空 …… 可惜，终究是梦里笙箫奏旧乐，梦醒泪染胭脂面。 22年一直走在亏损的路上，尤以这一周为最。 痛得刻骨铭心。 我有时甚至要翻看自己当年的故事给自己做心理按摩：从dapp博彩归零，到靠着在Wink打德州赚波场攒本金，而后被pgs跑路卷走，再到20年夏珍珠一夜15倍的欣喜若狂，期间磕磕绊绊，如今看来无非是一句话： 一个人的命运啊，当然要靠自我奋斗，但是也要考虑到历史的行程。 接下来，大概就是在黑暗中漫长的等待罢。 好好学习，好好工作赚钱养家，等待下一个时机。 这一点还是有些信心的，毕竟，我可是靠着在币圈捡矿泉水瓶子翻身的呀。 共勉。
苟且偷生，度过熊市
如果你是20年这波牛市刚刚入场的朋友，那么希望本文能为你提供一些微小的帮助。 回顾了一下自己和身边朋友们过去几年亏钱的种种经验，活过寒冬的思路大概是以下几点：稳定的场外赚钱能力。有现金流才能减轻焦虑，让自己忙起来，少盯盘，少看各种土狗群的聊天记录，按上一轮周期的经验来看，熊市并非没有赚钱机会，但也不是那种晚挖1分钟少赚60秒的节奏了。好好健身，好好学习，好好工作，熊市真的是要熬的。私募币千万谨慎。牛市的逻辑是私募解锁，利空兑现，疯狂拉盘，但现在机构都在纷纷套现，没有了故事和预期，还有谁会接盘？投资前多想想总是好的，比如： 代币是不是Fair launch？种子轮、私募轮占比如何，价格多少，什么时候开始解锁，释放周期多久？ 项目属于什么赛道？该赛道目前的头部项目有没有盈利能力？项目在赛道中处于什么位置，是基础设施还是上层建筑？项目代币有没有价值捕获模式？ 项目有没有拿到足够的投资可以度过漫长的熊市？ 倘若未来真的一熊三四年，我投入的仓位能不能坚持住不动摇？还是有明确的止盈和止损的预期？别碰合约、别碰合约、别碰合约，重要的事情说三遍。对新人来讲，合约更重要的功能其实是套保。 举个例子...
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