Dirac Finance stands as a derivatives protocol with an unwavering focus on delivering high, sustainable organic yields to investors. Its mission is to seamlessly integrate some of the most renowned strategies from the TradFi realm into the crypto space.
- S&P PARTNER SCORE: 96/100
- S&P PARTNER RATING: AAA (Excellent)
- THJ Partnership: Strategic
S1:01 - PROJECT OVERVIEW
Score: 5/5
Dirac Finance is a derivatives protocol that focuses on vault-based strategies. Its mission is to integrate some of the most recognized TradFi (Traditional Finance) strategies in a decentralized way.
Its primary goal is to simplify the complexity and risks of options and derivatives trading. Combining TradFi and DeFi provides key financial primitives in the form of vaults and innovative options-based strategies, structured products, and principal-protected coupon notes.
Dirac's primary mission is to enable experienced TradFi options traders to propose strategies through Dirac's vaults, with decentralized, community-oriented control.
Each of these vaults is carefully crafted to encapsulate distinct option strategies.
The primary objective of these strategies is to provide investors with robust principal protection while simultaneously fostering yield growth.
In conclusion, Dirac Finance aims to bridge the gap between the robust methodologies of TradFi and the transformative potential of DeFi.
Sources:
Medium: "DeFi-TradFi Synergy : A DeFi new narrative" - LINK
S1:02 - Development stage
Score: 5/5
Analyzing the project Discord server we can see that Dirac became a native Berachain project after a first deployment on Polygon zkEVM in early 2024. On 10/4/24 the announcement of his link with Berachain was published.
The Dirac team successfully launched their testnet dApp in June 2024. As you can see, almost 28k wallets have interacted with it.
They recently launched their second liquidity generating event in the form of an NFT collection (the first was on Polygon zkEVM with the Genesis collection): BeracPOL².
Funds collected from this NFT collection were be used to power technical product improvements, front-end improvements, additional audits, initial DEX liquidity, and marketing campaigns.
Some highlights of their roadmap (which you can see below) are::
Token Generation Event: scheduled for Q1 2025, with Ramen Finance.
Vault Strategy Implementation: starting in Q2 2025, with gradual expansions.
Rewards for testnet users: +12500 $BERA distributed among Dirac Finance testnet users on Berachain.
Dirac's staking system: projected for Q2 2025.
Deploy vaults on main Berachain Tokens: Q2 2025.
Deploy advanced hedged strategies: Q3 2025.
First TradFi roadshow to present the track record and attract deposits: Q4 2025.
Deploy the Dirac-Bera validator: Q4 2025.
According to the products to be offered, the roadmap states that they will be three different phases, starting with simplified vaults integrated with Stryke option protocol, then with more sophisticated structured products.
Initial exploration of alternatives (e.g. Polygon ZKEVM, SKALE) highlighted Berachain as the only suitable foundation for their products.
Hence the choice made by the team to build their products on Berachain.
We can say that Dirac Finance is based on Berachain’s innovative Proof of Liquidity (PoL) consensus, where Dirac’s current vaults and products are powered by flywheels and PoL aspects.
Their move to Berachain made a big impression and produced impressive numbers due to several engagement campaigns, such as the joint CubQuest with The Honey Jar, which brought together thousands of users actively participating in bArtio.
An example of these numbers are the following:
By developing innovative derivatives-based DeFi strategies and having established strong partnerships within the ecosystem, Dirac appears to be well positioned for success with the upcoming launch of the Berachain mainnet.
$DIRAC token will be natively launched on Berachain, and only on Berachain.
S1:04 - Competitive advantages
Score: 4/5
Within the Berachain ecosystem, there are few protocols that are directly competing with Dirac:
IVX Finance:
Specialized in Zero Days to Expiration Options (“0DTE Options”).
Index asset ($IVLP) offering exposure to $BTC $ETH $BERA $HNY in a single token.
However, the first of these is a partner of Dirac.
Furthermore, Dirac's approach is broader than its competitors, as they seek to attract TradFi capital with specific and advanced derivatives strategies. This is referred to by the project as DeFi-TradFi synergy.
The project has received funding from different sources, as we can see in the following image:
To secure initial DEX liquidity on Kodiak the project will launch its token through a Ramen Finance IDO, where funds will be locked through InterPoL solution, powered by TheHoneyJar.
The team has refined the $DIRAC token allocation model to create one of the fairest in the ecosystem.
You can see the complete scheme of the token distribution at point S2:03
S2:02 - Token utility
Score: 5/5
The main objective of the token(s) within the ecosystem, according to the consulted documentation, is the following:
Governance: Voting power on proposals within the Dirac DAO.
Liquidity Mining: Rewards for liquidity providers to vaults and pools.
Staking: Enhances APY by locking $DIRAC tokens.
Rewards Boost: on vault yields .
Incentives for $DIRAC holders: The stated above.
There is also a buyback mechanism that benefits to holders as increases the scarcity of the token
Future functionalities of the token.
According to the information here may be incentives for veDIRAC holders.
Sources:
Medium: "$DIRAC Token, Initial Market Cap and Sustainability" - LINK(Please note that the token distribution shown in the article is prior to the alpha provided in point S2:01).
Medium: "$DIRAC TOKEN, Liquidity Boost and Staking Mechanism" - LINK
S2:03 - Token distribution
Score: 5/5
Dirac’s aims for a low initial market, with a seed, advisors and team (11.4% of total supply) with 3, 4 and 6 months cliff, 0 tokens unlocked at TGE, and 18 to 20 months long linear vesting which makes it a fair distribution for their early community and early supporters.
Tokenomics distribution will be as follows:
S2:04 - Proof of liquidity impact
Score: 5/5
The approach taken in tokenomics is compatible with PoL principles, ensuring liquidity incentives and participation in governance.
Here liquidity is managed through staking shares and plays a central role. The liquidity exchange mechanism ensures price stability.
Regarding incentives, these include interesting and sustainable APY rewards (not as low as in TradFi nor as high as unsustainable inflationary rewards), governance voting rights and enhanced yields.
The entire project development seeks to exploit the possibilities offered by Berachain's PoL. The initial Vaults on Mainnet will be:
wBERA-HONEY put selling vault - integrated with Kodiak Options, powered by Stryke.
wBERA-NECT vaults incentivized by Beraborrow
Other multiple vaults deployed for our partners.
These vaults position Dirac Finance as a leading decentralized application that provides utility for Berachain tokens, especially meme and degen tokens. The project calls this "Vault As A Service" (VaaS) - the first of its kind in DeFi.
Development of initial versions and documentation is already underway.
All vaults and yield earning strategies are fully powered through reward vaults and PoL flywheels.
If you look at the following charts you can see how Dirac vaults will take advantage of the possibilities of PoL:
SECTION 2 - FINAL SCORE: 20/20
S3:01 - Social Media Presence
Score: 5/5
The project has a presence on social media, especially on X and Discord.
Its X account has over 48k followers.
Its Discord server has over 15k members.
These numbers have been leveraged by various engagement activities, such as the campaign on Galxe and CubQuests.
The DiracPol2 NFT collection has 1386 unique owners.
The project has a product-first approach and we value partnerships with the ecosystem, not artificial marketing or social media agencies, which aligns with the Berachain ethos.
The social media presence (X and Discord) is aligned with our narrative (TradFi-Defi synergy) and Berachain culture.
A dynamic of a weekly presence in X Spaces or AMAs has been established to ensure that its community is aware of what is being built and why they are doing it.
Analyzing their social networks, we can see that, at first, when they were on the zkEVM network, growth was slow and the number of users of the project was relatively few. On 04/04/24, in an announcement they celebrated having reached a thousand depositors in the vaults of that network.
The growth has been more sustained when they settled in Berachain, and explosive when they held the CubQuest, reaching 17,000 users on the Discord server.
Being a project where the community is its priority, after these milestones, they have continued with a dynamic of organic growth, based on genuine engagement.
For a DeFi protocol proposing complex products involving derivatives, they have a very strong community, especially on Discord..
On the other hand, the engagement on X is noticeable, but it has peaks, with some being viewed a lot and others not so much. For example this one, his most successful post, with more than 181k views:
Finally, another fact that shows the power of its community is the following: the minting of its NFT BeracPol sold out in just 6 minutes and has been integrated into Henlo as one of the NFTs part of the Berachain cult.
Sources:
Discord announcement channel: "1000 users on Polygon zkEVM" - LINK
Discord announcement channel: "CubQuests success and welcome to the newcomers" - LINK
The frequency with which they publish information on both X and Discord is around 3 days.
They have a good team of moderators and constantly interact with their users on the Discord server.
They respond quickly and efficiently.
Regarding engagement actions, they are currently linking their users to the Henlo project, from THJ.
They have also participated in Beraland's Xmas campaign, as well as in other engagement campaigns from various partners.
At other times they have developed Zealy campaigns, ambassador programs, content creation competitions, the already mentioned CubQuest, among others.
During the months of December and January, they carried out the "Diracian tips" campaign where, through a Discord bot, $BERA testnet tokens could be obtained through interactions with other users or airdrops that they gave each other.
This campaign generated a high rate of interaction with the project in those last months of testnet.
Source:
Discord announcement channel: "Henlo announcement" - LINK
As we have hinted throughout this section, the quality, experience and presence of the project's core team, especially on Discord, gives its users a sense of security and transparency.
Reviewing their social networks completely, we notice that the project has not had any problems with hacks, FUD or scammers within them.
Moderators respond quickly and politely to user issues. For example:
The username has been withheld for privacy reasons.
SECTION 3: FINAL SCORE: 19/20
S4:01 - Partnership evolution
Score: 5/5
Being a project that has moved from other blockchains to Berachain, THJ's evolution as a partner has been gradual in a relatively short space of time.
In April, the project entered the ecosystem and on 9/27/24 it closed agreements with THJ, moving from an Ecosystem/Bronze category project to a Strategic/Gold category project.
Additionally, Dirac Finance has partnered with projects incubated by The Honey Jar, such as Plug and Bullas.
After the announcement of its move to Berachain on 10/04/24 (cited above), only from 06/06/24 with the launch of Berachain's Bartio testnet, the entire Dirac social media ecosystem is turning to publications, engagement and partnerships on this future blockchain.
On 10/06/24 they launch their testnet on Bartio and the Berachain user community begins to learn first-hand how the project works. It could be said, according to the metrics, that due to the number of users in the testnet, added to the engagement achieved with the Galxe (not available anymore) and CubQuest campaigns, the result has been successful.
Also projects and representatives of the Berachain ecosystem begin to show contacts and agreements with Dirac, for example: Beraland, Kingdomly, THJ, Berasearch, Beraborrow, Infrared, Moby, Plug, Beravote, Wagmipad, MadHoneyFi, among others.
S4:04 - Keyman risk
Score: 4/5
The core team its solid, with extensive experience in web2 companies and web3 projects, but small in terms of management positions.
A considerable power vacuum would be created if both the CEO and the CIO & CTO left the project.
It should also be noted that the core team is not limited to them.
Regarding this point, the core team of the project has provided us with the following information:
"Since day one, Dirac Finance has been developed to be decentralized and controlled by the community, not by the team".
"That is why we have designed our tokenomics to favor the community and not the investors or the team".
"Through our partnerships and the narrative we are implementing, any options trader, protocol or community member can propose strategies to incorporate into the vaults".
"Therefore, the knowledge of the founders and the CIO was important at the beginning, to implement the initial products, but Dirac Finance no longer needs them for the technical aspects. Dirac only needs them for the current start-up period, and even now, the launch of the protocol can be handled by other team members".
The core team that manages Dirac Finance has years of professionalism and experience in both the TradFi and DeFi fields. The distribution of roles is as follows:
S5:02 - Project history
Score: 5/5
Regarding the history of the project, we can say that since they entered the Berachain ecosystem, it has advanced rapidly. Community growth, numerous partnerships and collaborations, engagement campaigns, testnet, all carried out with great success.
Looking at their announcements on Discord, the team always stays up to date and keeps their community engaged and updated, as we already said throughout the report.
The Dirac Finance team always conducts AMA sessions with the community, which not only provide clarity on the community's missions and events, but also highlight the more strategic vision of the project.
Dirac Finance provides 100% clarity on:
positioning
product
tokenomics
community
Additionally, they also keep the community informed through their Medium page.
A first audit of the initial vaults has been completed to ensure the safety of depositors' funds as the project was being deployed on Polygon zkEVM.
The overall response was positive: all identified vulnerabilities were fixed, resulting in a successful audit:
The next audit is scheduled for late December with Code4Arena. This audit team has already audited IVX smart contracts, meaning they are already familiar with Berachain’s options and ecosystem..
Multiple partnerships and collaborations have been established with solid projects in the Berachain ecosystem such as:
TheHoneyJar
BeraPlug
Beraborrow
Moby
MadHoneyFi
IVX Finance
Henlo
Beravote
Kingdomly
Most of these partnerships have generated, are generating and will generate solid participation results.
SECTION 5: FINAL SCORE: 19/20
The project excels in all evaluated aspects, with solid plans, full transparency, and no significant risks. Credibility is exceptionally high, making it a benchmark for quality.
This report has been prepared with information provided by the S&P team of Contributors:
While S&P doesn't guarantee absolute protection against scams and rug pulls, it is a valuable tool for navigating the Berachain ecosystem with enhanced security.
Collect this post as an NFT.
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