DeFi protocols remain strong in bear market
Although the crypto market is facing a cold winter, and the liquidity in the market has fallen to its lowest point in recent years, even in such an environment, DeFi protocols are still achieving good returns in such an environment, especially the decentralization of the Arbitrum chain a while ago. The centralized perpetual contract exchange GMX has received enthusiastic attention from the market.
However, DeFi protocols are everywhere on the market. Without innovative mechanisms, they can easily be eliminated by the market. Therefore, in this article, we will take you to have an in-depth understanding of Vaultka, a highly potential DeFi protocol on the Arbitrum chain.
What is Vaultka
Vaultka is an innovative DeFi protocol on the Arbitrum chain. Its main feature is to provide more diverse strategy options for decentralized perpetual contract exchanges on the Arbitrum chain.
The protocol mainly uses a leverage mechanism to obtain higher returns, which will help improve investors' capital utilization efficiency and achieve better returns. The currently launched products include well-known products such as GNS, GMX, Vela, and HMX. DeFi protocol.
Simply put, the Vaultka protocol is like the liquidity center for these Perp DEXs.
What are the features and potential of the Vaultka protocol?
Vaultka's products mainly include the following four series:
LP Optimization (Liquor): Provide optimization for the Perp DEX liquidity pool to improve yield and stability.
Index investment (Cocktail): Provides Perp DEX index products, diversifying risks and increasing returns by providing a combination of different Perp DEX products.
Stablecoin lending pool (Non-alcoholic): Provides stablecoin lending services with higher yields than traditional lending.
Market tracking and news page (Bartender): Provides Perp DEX market data and analysis to assist trading and investment decisions. It is not yet online.
1. Significantly increase profitability
As mentioned earlier, among these four series of products, LP optimization is currently the most popular of these strategies. According to the actual display of DAPP in the figure below, we can find that if users provide ARB/USDC liquidity in Vaultka, The annualized return will be as high as 40%. Compared with operating in GMX, Vaultka has greatly improved the relevant profitability.
Vaultka - ARB/USDC
GMX - ARB/USDC
2. TVL’s total locked position continues to rise
According to the cryptocurrency data website DefiLlama, Vaultka’s TVL has continued to rise steadily since its launch this year, and there has been a significant increase after the GMXV2 strategy was launched.
3. Arbitrum short-term incentive plan launched, 50 million $ARB to support ecological development
Arbitrum, the leading Layer 2 project, launched the first round of voting for its Short-Term Incentive Plan (STIP) on October 7. Incentive funds of up to 50 million ARB will be distributed to all eligible projects. It is hoped that through short-term incentive plans, we can promote ecological activity and attract more users and liquidity, thereby further promoting the development of the Arbitrum ecosystem.
Although Vaultka did not win the favor of investors in the voting, the GMX protocol, the most popular protocol on the Arbitrum chain, basically has a high probability of receiving this incentive reward, so Vaultka can also benefit from it.
Token Economic Model and Function
$VKA is Vaultka’s utility token. Its main functions include
Stake to get higher rewards
Governance Voting
Buy back and burn tokens
Improve leaderboard points
According to the information provided by Vaultka’s official documents, the total supply of $VKA is 100 million and is distributed as follows:
8% Liquidity Injection: Unlock 5% of $esVKA, the remainder will be reserved as $esVKA for special events and will not be released as circulating supply.
42% $esVKA reward (staking $VKA): used to reward regular activities, linearly released over 5 years, this incentive will be distributed in the form of $esVKA (staking $VKA).
8% public sale: Participants can invest $ETH and receive $VKA at a fair and equal price. There is no lock-up period in the TGE event, and investors will be able to obtain 100% of $VKA immediately after the TGE event ends.
17% Ecosystem Fund: 1.6% of the Ecosystem Fund will be used to launch the UniswapV3 VKA-ETH pool after TGE, with a lock-in period of 1 year. The remainder will be gradually released for marketing and financial purposes.
5% airdrop: airdrops will be given to scorers on the leaderboard
5% private investors: 6-month lock-in period, followed by linear release in 18 months. Tokens allocated to individual investors are locked in smart contracts.
15% team: 6-month lock-in period, followed by linear release in 18 months. Tokens allocated to teams are locked in smart contracts.
Based on the above information, we can know that the early circulation of the project was mainly based on 8% public sales.
Low valuation? Is IDO worth buying?
Vaultka has now announced relevant information about IDO
Date: October 16, 8:00 PM (UTC+8), end date: October 19, 8:00 PM
Initial total token supply: 8 million $VKA (8% of total supply)
Minimum purchase quantity: no requirement
Purchase currency: $ETH only
Lock-up time: None
Estimated fundraising amount: 500 $ETH
Sales rules: A fair offering mechanism is adopted. If the fundraising limit is exceeded, it will be distributed according to the investment ratio. For detailed calculation methods, please refer to the official website document
Participating locations: https://www.vaultka.com/launch
If the user holds a whitelist, the user can invest in the first 12 hours and is not affected by the fair sale mechanism.
Compare with institutional acquisition prices
Assuming $ETH is denominated at $1,600, and a successful fundraiser obtains 500 $ETH, the price per token will be $0.1.
Vaultka received investment from Rexian Capital and Meerkat Venture Paterner in the seed round, with a total investment of US$400,000, a valuation of US$8 million, and a token price of US$0.08.
From the above point of view, in fact, there is not a big gap between the price obtained by institutions and the public sale, and the tokens of seed round investors still have a 6-month lock-up period, plus an 18-month linear unlocking period, so the selling pressure Also very limited.
In addition, from the perspective of initial market value, since only 8% of the public sales were mainly circulated in the early stage, the market value was only 800,000 US dollars. The decentralized perpetual contract track is basically the one that still maintains sustained and stable income during the recent bear market. The agreement, coupled with the support of Arbitrum’s official incentive plan, overall, the potential for future growth is very large.
Safety measures
As a DeFi project, the most important thing is security. In terms of security, Vaultka has conducted multiple comprehensive smart contract audits and released bug bounty programs, on-chain analysis and multi-signature wallet management, establishing comprehensive security frame.
However, early DeFi projects cannot be 100% confirmed to have vulnerabilities due to their recent launch. Coupled with the large amount of funds raised on the chain, they are often the target of hacker attacks, so users should also pay attention to the allocation of funds when using them.
in conclusion
Although high returns look great, they are usually accompanied by high risks. Since Vaultka uses leverage, users must also bear the related liquidation risks.
If investors do not want to take risks in a bear market and participate in related sales, the official has also mentioned related airdrop plans in the token economic model. Users can conduct related interactions to increase points to obtain airdrops.
If you feel that the future of the token is promising and you are willing to take risks to obtain higher rewards, don’t forget to check the status of the token sale at 8pm Taiwan time on 10/16. If the market responds well, it is not too late to invest.
