Concave is a Decentralized Finance (DeFi) protocol using Pepe the frog as its effigy and has not yet revealed its true purpose or operation. Speculations are running wild, we tried to find out more about Concave Finance, and how this new decentralized application is going to blow up with a Discord counting more than 27,000 users in just 7 days.
Understanding decentralized finance (DeFi). đ
First of all, Decentralized Finance is the possibility to use financial protocols directly on the blockchain. For example, Farming, Lending, Stacking are mechanisms governed by smart contracts, which are contracts whose execution is automatic. This allows any decentralized wallet and therefore, Web 3.0 to use these automatic actions.
The operation is simple, you connect your wallet on the protocol, and you move funds there. Thus, you benefit from the best rates of return in finance. Ranging from 20% annual on government currencies such as the Euro or the Dollar through stablecoins, to 1% per day on more volatile cryptocurrencies and therefore with more risk of capital loss.
Currently, in traditional finance, the intermediaries of the system allow themselves to take outrageous fees. Reducing the Livret A to 0.5% annually.
With decentralized finance, minimal fees are charged for the operation of the network and all profits are returned to the users.
What is the new DeFi 2.0 wave? đ
So, if decentralized finance is so exceptional, why are protocols already claiming to be decentralized finance 2.0?
To provide exceptional returns, some protocols on certain blockchains use liquidity mining programs. This is a vast compensation system for users providing liquidity on the protocol.
Basically, the first arrivals on the protocols are graciously rewarded with exceptional rates of return. This initially helps to maintain a strong appeal on the project and thus show significant traction to attract newcomers. Quite often, these programs are limited in time, or to a number of tokens, pushing users to switch their cash to another protocol at the end of the additional rewards.
At the same time, the diversification of blockchains and protocols, creates a scattering of liquidity. Thus, you have billions of dollars that are spread across a wide variety of protocols. According to Defillama, the site listing decentralized finance protocols, there are $275 billion across 750 applications, which are themselves spread across more than 70 blockchains.
The goal of DeFi 2.0 will therefore be to make these protocols more sustainable and durable in the future by avoiding a massive turn-over of liquidity between different protocols.
Yes, but what about Concave Finance? đĽ
For the moment, the information available on Concave Finance is very scarce. It even seems that the creators have consciously organized a scavenger hunt for users who want to join the adventure. This is a way to make each newcomer responsible by forcing them to do their own research and to understand by themselves what could be the ins and outs of the protocol. #DYOR (Do Your Own Research) as it is customary to say in the crypto-game.
First of all, it seems that the community consists exclusively of libertarians and early bitcoiners. Considering crypto-assets as the only possible way out of the current inflationary crisis.
The emblem of the project is none other than Pepe the Frog with a spoon representing the concave shape. We have to go back to the etymological origin of the term concave to find a solution to this enigma.
Looking at the logo of Concave Finance, it is about three optical lenses allowing the refraction of the light. In optics, convex lenses gather light and concave lenses disperse light. If you look at the logo from left to right, the first lens is a convex lens and the second lens is a concave lens. The middle lens has a concave shape on each side. Finally, the last lens is concave towards the inside and convex towards the outside.
According to our analysis, the Concave Finance logo means a convergence of the points in its center and a divergence of the points towards the outside. It could therefore be a common trunk of liquidity with access to different layers that could be blockchains, the latter would play the role of refractor allowing the dispersion of liquidity.
So how is ConcaveFi revolutionary? đĽ
Concave Finance could become one of the largest liquidity providers in the DeFi ecosystem. That is, today the new protocols that are being created will disperse the liquidity available in the market, whereas Concave will simply aggregate it.
In order to get away from central banks and traditional economic systems for good, enough liquidity needs to be gathered on a single protocol so that it never fails and users can use the blockchain, even if they want to trade a few million at once.
According to Nour Haridy, who is an inspector of the Concave project as well as the founder of Inverse Finance on ETH and Scream.sh on Fantom, (two protocols allowing the lending of cryptocurrency), Concave is literally the baby of Inverse Finance and OlympusDAO.
Inverse Finance is a protocol defining itself as the "Decentralized Global Central Bank". This project currently holds over $80 million on its system.
OlympusDAO is a protocol defining itself as "The Decentralized Reserve Currency". This project currently holds almost $3.8 billion in its treasury.
In practical terms, these two projects already hold almost 4 billion in liquidity on the Ethereum blockchain. But Olympus is a bit more special, the launch of OlympusDao marked the beginning of DeFi 2.0 and sparked the "protocol-owned liquidity" movement. Instead of relying on third-party liquidity providers, such as users, the DeFi protocols themselves control the LP (Liquidity Providing) tokens.
Previously, someone who provided liquidity through an "LP" could withdraw their liquidity whenever they wanted. In OlympusDAO, liquidity providers become guarantors who are incentivized to permanently lock in the protocol's liquidity. They then sell the LP token and receive a discount on the protocol token (OHM) in exchange rather than buying it on the market. As a result, OlympusDAO does not have to worry about low liquidity because the protocol itself owns all of its LP tokens, thus prioritizing the health of the protocol by facilitating abundant liquidity.
So that's a non-negligible part of the answer đĽ
Concave Finance would be the cross between OlympusDAO and Inverse Finance. Olympus would bring its new vision of DeFi 2.0 and the liquidity pool, self-sustained by the protocol itself. As well as the flexibility of the DOLA stablecoin offered by Inverse Finance.
DOLA is a stablecoin that tracks the price of a dollar. DOLA can be minted using other assets as collateral, and can also be used itself as collateral to borrow other assets. All this in multichain, with Avalanche, Fantom, Cronos & Harmony.
Who are the creators of Concave Finance đŚ
ConcaveFi was created by a core team of 4 people, they are TNA Capital, 0xCanary, 0xTheGreatApe and Typhoeus. Except for 0xCanary, the other three founders of Concave Finance are members of OlympusDAO. We can therefore count on the experience of these creators, who already have a multi-billion dollar protocol under management. (3.8 billion TVL)
A verification and inspection team is also dedicated to ensure the security of the protocol codes.
Find links to the profiles on the team's Linktree.
How can you participate in the ConcaveFi launch? đ
To participate in the launch of the project, you will first have to join the Discord. And the creators have decided to play on the scarcity of places. You will have to be patient to find a valid link to the Discord.
Due to the size of the project, the mine is only open a few hours a day. Otherwise the Discord is full and it is almost impossible to read new messages.
You will find a link on the Twitter of Concave Finance, but be careful, this link is only valid for a few hours.
ConcaveFi Discord registration link (may have already expired)
The Discord organization is in the form of ranks, which you can obtain by performing different tasks. For example helping the community in an effort to translate resources, helping newcomers, or simply doing Pepe's prayer. This process is twofold, on one hand it allows the community to help itself, and the most active members will have the chance to be on the Whitelist, that is, privileged access to buy tokens when Concave launches.
â ď¸ If you come with bad intentions, are not courteous, or come to advertise on the Discord, you will definitely be sent to the troll pit and permanently excluded from other channels. đš
Article by Hiro Nakamoto (â)#8119
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