It is no secret that Decentralized Finance (DeFi) has changed personal finance for generations ahead. It has ushered in a whole new wave of people who seem to have taken control of their finances without any 3rd party influence.
DeFi has challenged how finance was viewed traditionally and has liberated many from the notion of big banks and hedge funds used to decide their daily lives and economy from wall street.
Despite the raving concept’s brilliance, it is becoming commonplace among the growing number of diverse blockchain communities. Some significant downsides have subjected the idea of cryptocurrency continuously into a weak spotlight.
Why DeFi hasn’t Gone the Distance, As Expected
Rugpulls remain the topmost weakness of the Defi push, resulting in heavy losses incurred by users. It’s why popular price aggregators like Coingecko would have a banner with this warning strategically placed on Defi tokens.
This type of approach taken by the likes of Coingecko does a great deal in warning new users of pending rugpulls.
Anonymous teams is another plague of the Defi run. It threatens the very existence of the whole movement; despite being the very core of the blockchain. We’ve got projects launching with completely anonymous teams, which should be a big red flag for users. Still, unfortunately, it doesn’t turn out this way. The herd mentality sets in, bringing along with it investors who aren’t exactly engaging in research before investing.
Scam exit is when a project team develops an unsuspecting move to shut down the project without prior input and knowledge from the community; this is common with recent cases still prevalent in Defi communities.
What Has Made DeFi Stronger
Even in trying times such as this, DeFi market cap has surged past $45B as the Total Value Locked(TVL) in DeFi tokens continues to soar towards more significant highs. What could be the reasons behind the successful DeFi projects?
Total independence from the traditional type of investments is instrumental to the industry’s growth. Despite what seems like significant problems such as rugpulls, exit scams, and anonymous teams, the industry appears to be on a growth trajectory nonetheless. Over time, these flaws are expected to be resolved with new research, innovation, and smart contract technology improvements, which houses the Defi movement.
Waking up to meet new tools implemented to further secure users have started already. New products launched with higher community governance and transparent teams are beginning to get the right type of engagements and attention. It is to this end that projects are innovating brilliant types of Defi products.
Why HCO is Advancing the Scope
Holdl Coin Offering (HCO), a type and form of advanced staking mechanism from the Sinovate team are setting up the shape of staking, a Defi product that gives 100% importance to the community, borne out of a transparent community decision – an approach not common with typical Defi projects.
A governance proposal, which got accepted and is now live, was created with inexperienced users in mind with a 1-click setup to join the HCO staking program. The HCO incentive program started immediately after the network upgraded on November 21, late last year and will remain active for 75 days. The exact block number is 604,000 when the holding period is over. The campaign is due to come to an end in the week commencing from 4th of February, 2021.
HCO Staking and Rewards
Individuals who take part in the HCO campaign will get rewarded:
.25% per month over 3month
.50% per month over 6 months
1.25% per month over 12 months
The rewards will be paid at the end of the chosen locked-in period
What sets HCO apart
Unlike typical Defi platforms, there is no fear of a team exit scam when it comes to HCO as all team members’ profiles are disclosed in the website’s team section. There is no chance of a rugpull as users still control the wallet in which their staked coins live. Constant live updates on the project dedicated youtube channel is another strong case of transparency, safety, and security of both the project and the user’s staked coins.
Rules of the Campaign
- The campaign will run for 75 days (commenced on Nov 21st)
- A max number of 75k SIN will be locked per address.
- You can have as many addresses as you wish.
- You cannot cancel locked coins after the duration is picked, it has to be fulfilled.
- All participants must wait for the maturity of their holdings to get rewarded.
What typically follows a staking program is the increase in token value per price. It is quite common and has driven up most projects’ value insanely. Coupled with their investment safety, users stand to gain both an increase in value per token price and the guaranteed safe returns of their coins at the end of the locked-in period.