Cryptokitties spinoff dApp KittieFight introduces yield farming, and this only proves that successful dApps get a buzz not only one time in their history. What's going on?
Cryptokitties gets a sequel in the form of KittieFight, a mortal kombat for digital kitties. KittieFight is not only about the game itself, there's something bigger. The native tokens of this game, KTY, are going to be auctioned and then the successful buyers of them can use them for the "Volcano" yield farming program at the Uniswap V2 pool.
Uniswap is one of the best platforms for yield farming now. Nevertheless the fierce competition from other platforms, Uniswap is one of the DeFi leading systems for decentralized financial services. This decentralized exchange has seen a massive amount of trade volume during the past few months. Total monthly volume of trades on Uniswap protocol reached $9.876B in August, that is more than all over the past year.
As in most technical spheres, evolution in the crypto industry has been broken down in waves. The initial wave was the building of prime blockchain solutions and infrastructures like Bitcoin (BTC) and Ether (ETH). ETH decentralized ledger has become a breeding soil for the adventure of various new crypto services.
The boom of ICO/IEO has cleared the crypto sphere from the lame projects and given a stimulus to develop the world of decentralized finance in which yield farming is one of the most competitive services effectively challenging the rate of profitability that bank deposits may bring. The policy of negative interest rates gets more traction in the world since at long last the quantitative easing of central banks may spur the global financial turmoil.
The transformation of the legacy financial system is an urgent issue since "maintaining a policy status quo in this context would be akin to throwing in a towel, which would undermine the credibility of the new framework right out of the gate," as Aneta Markowska, chief financial economist at Jefferies warns. Steve Barrow, chief of Forex strategy at Standard Bank, put it blatantly, "the coronavirus crisis is many times more destructive than the financial crisis of 2008" since it makes unusual monetary policies as a "new normal" promising dire financial ramifications.
"Volcano" KTY Yield Farming as Natural Part of Crypto Evolution
Now it is definitely time for DeFi. DeFi projects may amend the inefficiencies of the legacy financial system, and the yield farming for KTY is one of such examples. DeFi is an amazing phenomenon even for those who're in the crypto sphere for years but stuck in the initial phase of its development. The Bitcoin maximalists started thinking this way:
"I had this nightmare last night that a new game changing technology disrupted my sense of the preferred store of value investment as Bitcoin, and I ignored it while its proponents all got rich and made fun of me for being a boomer."
And these deliberations are true.
Just look. During the coming KTY Dutch auction that precedes yield farming program named after "Volcano," the participants of the auction send Ether bids, and the purchase price of KTY will be set after accumulating all price offerings. Then they can receive from +500% up to 6,000% more KTY and KittieFIGHT DAO (SDAO) tokens for providing KTY and WETH, ANT, yDAI,yYFI, yCRV, yaLink, aLend, aSNX, yETH, aYfi , 2key, GNO and yETH liquidity on Uniswap V2 pool. It's worth mentioning that the project has kept back 10% of the total 700,000 KTY and 700,000 SDAO to reward those who get into the "Volcano" yield farming within the first seven days.
Tokens for Liquidity
Simply put, "Volcano" KTY yield farming offers investors a novel way for getting tokens. Unlike ICOs, where investors exchange money in return for new tokens, yield farming allows investors to get tokens by simply supplying a protocol with digital liquidity.
DeFi eliminates any threshold for the participants and makes the "Volcano" yield farming program accessible to the average Joe. As analyst Spencer Noon says, "if you think DeFi is anything like the ICO era, just remember that back then there were multiple pre-launch projects that required minimum investments of more than $250 thousand to participate in their pre-sales." KTY tokens have got a unique yield farming dimension. KTY is already a very hot theme in KittieFight since they're used as a financial medium for paying fees and fighting admission tickets in the game. "Volcano" yield farming is going to highlight the deep potential of KTY bringing the values of Cryptokitties popularity lasting almost three years, KittieFight and Uniswap brilliant uprising together under "Volcano" yield farming umbrella.