Despite the rapid growth of the DeFi sector, inflation resulting from infinite mining of new tokens and market pumps and dumps is still a significant bottleneck in its widespread adoption.
These are exactly the challenges that DefHold aims to tackle with its non-inflationary DeFi ecosystem.
Through DefHold, crypto investors are able to generate yields on the underlying assets by holding crypto coins during market pumps and dumps. The platform achieves this by leveraging autonomous yield generating solutions.
Below is a closer look into the platform and a peek at some of the new products it’s set to introduce.
DefHold is non-inflationary staking and farming DeFi protocol. The platform offers long-term crypto investors with effective yield-generating strategies to avoid hefty losses in volatile market conditions.
In essence, DefHold looks to provide long-term crypto investors with accurate portfolios and own liquidity management by executing autonomous yield-generating solutions.
What Problems Does DefHold Attempt to Solve?
DefHold provides two solutions in the crypto sector: protection from inflation and market dumps. Presently, speculation is a large driving force of the nascent DeFi as investors buy low to sell high. While this form of trading can be profitable, it comes with a greater risk.
Speculative investors can see their entire position liquidated in the event of a rapid sell-off. This has happened many times in the past few months, leaving unprepared investors at a great loss. What is worse, the effect is amplified by cascading sales where people cannot hold through the crash, leading to further market dumps.
DefHold aims to provide protection from market dumps through its multiple yields generating mechanisms that compensate investors for holding tokens during extremely volatile cycles.
DefHold also attempts to solve the enormous issue of inflation in the DeFi sector. As the field continues to expand to more blockchains and attract new users, inflation has taken its toll. The large number of DeFi platforms continuously decreases the total liquidity in the sector.
Additionally, as each platform issues new tokens to its users to strengthen its liquidity pools, increased token issuance detracts from the total value of the tokens in circulation. DefHold wants to be able to tackle inflation by capping DEFO tokens at 12 000 DEFO.
The Non-Inflationary Yield Generator (DEFO) token is DefHold’s native cryptocurrency, allowing holders to stake or farm their digital assets into pools encompassing set lock-up periods. Nonetheless, farmers and stakers will be able to withdraw their assets before the term of the lock-up period expires by paying an early withdrawal fee (EWF).
DEFO Token’s primary use case is staking or farming, where users farm/stake their assets in pools with pre-defined lock-up periods using the token. The platform enables users to farm DEFO/ETH & DEFO/USDT LP tokens and earn income in return.
Major Products Announcements
The platform has launched two revolutionary products recently; the early withdrawal fee (EWF) pools and a Whale Club designed for investors seeking to accumulate power on the platform.
EWF staking and farming pools seek to benefit DefHold investors by adding other tokens on the platform to enhance platform exposure and increase token buying pressure. EWF is basically a global crypto staking platform that employs the concept of liquidity staking but to a better extent.
In EWF pools, investors who need to access their digital assets before the set lock-up period expires pay the early withdrawal fee. This fee is channeled back to the liquidity pool. Since the fee is sort of stakes, it earns interest, which is then shared among the pool investors.
EWF pools eliminate inflation and help investors keep to their staking strategies via incentives. Also, the pool enhances the platform’s integrity and boosts investors’ profits. Investors in the EWF pools earn every time their counterparts leave the pool making it less volatile and more stable.
Whale Club is another exciting DefHold product. It offers them additional investment packs such as the additional buying power and the experience of whales involving unique vaults. Each of the whale club’s vaults has minimum balance joining requirements and minimum liquidity of the underlying assets.
DefHold is an intricate platform providing potential solutions to pressing issues that are currently riddling the DeFi space. The introduction of the new products strengthens the existing ecosystem and provides investors with means to battle inflation.