Decentralized Ecosystem built around Staking

19 Jan 2023

In the early days of the industry, the blockchain world was mainly a POW camp represented by BTC, ETH and BCH. At that time, anyone who wanted to participate in it in the form of nodes needed to purchase equipment and connect to the network after debugging, and earn revenue in the form of POW bookkeeping for the network. With more and more participants in the POW camp, the returns of small and medium-sized investors are getting worse. In addition, the public chain that usually uses POW as the main consensus mechanism , is generally inefficient on the chain, and POW is often affected by factors such as policy , environmental protection, and energy saving . In contrast, the network itself is more efficient with proof-of-stake POS as the consensus mechanism.

The network security of POS is weaker than POW , but the main point of view in the industry is that POS is more reasonable than POW. Usually, users who want to participate in the verification in the POS network need to Staking (pledge ) a certain number of native tokens , and become the verifier through the client, and at the same time obtain a certain verification income. Of course, there is usually a threshold for the number of staking assets to become a POS verifier. Some trading platforms, mining pools, etc. usually aggregate the assets of small-capital users in the form of staking products and give corresponding interest to help them become POS verifiers to obtain income.

Staking in the DeFi Era

The emergence of DeFi allows us all to participate in trading in a truly decentralized form freely and without permission . More importantly, users can not only become traders, but also collaborators. For example, liquidity mining is a kind of A great collaboration system. Whether it is liquidity mining or single-currency pledge to obtain income, the purpose is to inject liquidity into the fund pool of the DeFi protocol, so that other users can enjoy a smooth and low-slippage trading experience.

Participating in liquidity mining and staking mining is essentially a form of staking and is mainly rewarded with governance tokens , while user participation is mainly through interaction with smart contracts, and the model is more decentralized. The DeFi ecosystem is not rational. After DeFi provided high returns to participants, it quickly attracted the influx of large-scale funds and users, but at the same time, the huge Staking public chain assets were left out of the market due to lack of income.

In addition, although DeFi liquidity mining has successfully attracted many token holders to participate but the death spiral formed by "mining and selling" did not generate actual value increments , further the overall incentive model is short-lived and also full of Bubbles lack value support. And because of security issues, in the early days of DeFi popularity, many users lost their money due to participating in liquidity mining. At present, the head structure of DeFi based on the Staking track has not yet formed a system, and Kiki finance ecology is expected to become a new force in this track.

Kiki finance

Usually staking is a small section of a DeFi protocol, and KiKi Finance takes the decentralized open source Staking protocol of multi-chain aggregation as its business positioning, and builds a hierarchical economic model to revolve around Staking. As a multi-chain protocol, kiki finance currently supports the staking of mainstream public chain assets including EOS, FIL, ETH, Terra, etc. , and users can complete project node voting through the KiKi platform to get rich rewards.

In addition to setting up a Staking pool, KiKi Finance has also built a Farming Pool in the "forest". Any user holding the stacking asset voucher can play treasure hunting in the "forest" and make further profits from these farming pools based on the voucher. From the point of view of income, through the income model of Staking + Yield Farming, higher returns can be obtained than ordinary Staking. High capital utilization is one of the primary advantages of the KiKi Finance ecosystem.

At this stage , the market is down, and the overall market investment sentiment is low, and many investors are losing money on the gold standard, while the vast majority of users remain optimistic about the market outlook. Staking is a tool to earn interest in a bear market. It crosses bulls and bears, which can bring considerable economic benefits to investors.

When Uniswap issued UNI in the early days, some analysts said that UNI had no value. Relying on Uniswap huge user volume and consensus, UNI performance was not bad, but some of the smaller DeFi protocol governance tokens had poor overall value support and subsequent market performance was not good.

KiKi Finance is a DeFi ecosystem that advocates DAO governance. As a governance token, $Kiki will be able to serve as a bargaining chip for voting on various community resolutions, and an open DAO will be able to attract more community users to participate. KiKi Finance itself can provide sustainable support for many POS chains in the industry, kiKi team uses the $KIKI token to set up KiKi Innovation Fund, looking and funding the dark horse PoS projects, supporting more potential project parties, providing pledge entrances and services, and also supporting various coins for Staking. Any user who holds a $KIKI will have the opportunity to get multi-chain token airdrops, which is also the best way to enable more community users to hold $Kiki.

KiKi Finance further enhances its value moat by continuously building actual value scenarios and deeply empowering $KIKI. In addition, $KIKI itself also has an elastic supply system to achieve deep deflation in the market.

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