Konomi DeFi

15 Jan 2023

When it comes to DEFI, we have to say that the most basic application in the DEFI ecosystem-deposits and loans. On the one hand, the market requires users to deposit and borrow to maintain the operation of DEFI finance, and on the other hand, it also needs corresponding incentive measures. Because of this, projects such as AAVE, compound, and MakerDAO have always received people's attention, and the amount of funds brought is also rising. Only on deposits and loans will produce other liquidity mining, derivatives, insurance and other financial plays occur, so it can be said that this is also the main factors in the rise of DEFI's high-rise buildings.

As one of the important DEFI ecological components in Polkadot, konomi also saw such an opportunity, so it chose the deposit and loan category in Polkadot ecology to build, and is committed to building Polkadot-Ethereum double-chained DEFI connection bridge, and become an important player in the DEFI financial world.

The advantages of konomi

We all know that in the Ethereum ecosystem, products such as compound and aave have achieved great success, but due to the performance of Ethereum, these projects are currently losing their underlying user groups rapidly, which is currently Ethereum DEFI main problems.

For konomi, it mainly relies on Polkadot high-performance public chain. Therefore, it can provide users with a very silky experience in key details such as transmission speed, handling fees, and transaction confirmation time, which also makes konomi choose to Polkadot substrate as the first element of development.

Compared with the lending projects on Ethereum, the main feature of konomi is that it is fast enough and can reduce the cost of use. The user experience threshold is relatively low. This will naturally bring a huge user group to konomi. This is very different from the DEFI lending project on the Ethereum platform.

Due to the handling fee, the current DEFI participants on the Ethereum platform are basically a small number of large groups. Because of this, these large groups can use their capital advantages to allocate the handling fees to a very low level, so they are also willing to use Such conditions can get a better advantage.

But we know that group success is often the easiest success. The number of user groups on konomi is bound to have a large part of people with small sums of money, and for this group of people, cultivating their usage habits is more like cultivating In the future, large households, after all, small retail investors also have a certain potential to develop into giant whales. On the contrary, when the big players on Ethereum choose to leave, this may have a huge impact on the DEFI ecology of Ethereum. Therefore, in this respect, konomi currently has a great opportunity advantage.

What konomi will bring to DEFI

For most people, konomi may become the "compound" and "AAVE" in the Polkadot ecological chain. Because of this, some people may not pay much attention to konomi. In fact, the main task of konomi is not only in terms of lending, it also includes some other features.

Konomi builds a bridge connecting Polkadot and Ethereum to lend to the DEFI ecosystem

As an important product in the Polkadot DEFI ecosystem, konomi's current main direction is to build the main business of Polkadot lending, and then by introducing the interface of the successful DEFI project of Ethereum, users can gradually transition from Ethereum to konomi. In this way, it is also easy to quickly occupy a place in the DEFI circle, so that konomi can develop reasonably and quickly, and attract a large number of users to join.

A more optimized token incentive model

For the current DEFI project on Ethereum, incentive tokens may be something that many people are more concerned about. For the current ecological tokens on compound and aave, they are facing a situation of too few usage, except for liquidity. Except for mining tokens and governance voting, there are almost no other redundant additional functions, which also seriously affects the long-term development of the entire ecological project.

Konomi "Three Steps" Strategy

As for konomi, its incentive model is more realistic. In addition to the liquidity mining and voting governance we talked about, for the entire project, the profit income is also distributed through konomi's holders. People can choose to mortgage debt warehouses to obtain stable income. Not only that, konomi also has repurchase and destruction functions, which means that for tokens, this is also a long-term market value guarantee. In this case, it not only plays a positive role in the development of the project, but also makes the tokens Long-term holders can hold with confidence, because after continuous repurchase and destruction, the token model will inevitably produce a deflationary effect, thereby stabilizing the price of the currency, so that all holders participating in konomi can benefit.

From this perspective, konomi mainly intends to implement the "three-step" strategy of DEFI development:

The first step is to copy the successful experience of Ethereum DEFI, so that its DEFI function can be improved and meet the needs of most people. This is also the foundation of konomi.

The second step is to connect the DEFI financial development model on Ethereum, so that the two can be integrated and interoperable. This will have a capital overflow effect for konomi. The excess funds on Ethereum may choose konomi for development. This opportunity Makes konomi and Ethereum DEFI project stand on high level.

The third step is development and innovation, breaking the original DEFI play, and constantly innovating, so that users can feel the vitality and development of konomi, and activate community members.

Polkadot is an important blockchain project on web3.0 in the future. There is no doubt that its opportunities are more abundant, and the development prospects it brings also make a large number of developers to be attracted by the ecology, and this is also for konomi An important opportunity. For investors, we need to recognize that the amount of funds brought by the Polkadot ecology is very large, and konomi, as the underlying DEFI financial lending agreement, will naturally play a key role in it. Because of this, for konomi, there must be great role in the future!

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