Until now, DeFi has been composed almost entirely of failing protocols with tending to zero governance tokens value. We will revert this trend.
At the start of our project, we focused on the reasons for the shortcomings of the environment. How with such rapid growth adoption has not been possible to build something that would last over time, something solid and capable of providing security to its investors?
In our opinion, these five points are the main causes and with AegisDOE we are confident of being able to break them down creating an asset that not only stands off the time but will also appreciate as it ages.
SELFISH MANAGENT (Common DeFi Protocols)
In DeFi, over 90% of protocols are managed by teams with a milking-style approach instead of a business-style one.
The repeated failures of various protocols have made the development of trustworthy dapps daunting and seemingly unattainable for many.
This has discouraged legitimate teams and opened the door for those with profit-driven motives, who often adopt unsustainable protocols that rely on Ponzi schemes or bull market inflows.
Most teams abuse “Team Funds” emissions, simply cashing out their tokens daily and milking their community, instead of basing salaries on the protocol’s actual profits, as a responsible business model would dictate.
BUSINESS MANAGEMENT (AegisDOE Protocol)
Results before words and nothing is gifted for free, even for the developers.
Our team has decided to move away from the management style currently present in DeFi, we are supporters of meritocracy and not interested in quick and unfair profits built on the backs of our investors.
There will be no emissions allocation for the team.
The salary, established based on the profits of the protocol, will be proposed to the community every month, which will then be able to vote on whether or not to proceed with the payment.
In this way, we guarantee our commitment to building a profitable ecosystem and the constant incentive to improve it with the utmost attention not to incur possible losses which would then be passed on to both parties.
POOR INNOVATION (Common DeFi Protocols)
In DeFi, over 90% of protocols are forks of previously created ones with no improvements, just different names.
We are all pioneers here and we can’t blame early protocols for not being well designed and badly set for the long term, they had no past studies to rely on.
But from then to now we continue to see a copy and paste of these projects and their errors without the slightest attempt to innovate them into something functional, repeating the same mistakes and bad results.
This happens because simple copying requires less effort and perhaps represents a better gain/effort ratio for the developing teams.
INNOVATIVE (AegisDOE Protocol)
“If you want something you have never had, you must be willing to do something you have never done”. A quote with which we totally agree.
In addition to our core product, there will also be many re-imaginings of previously launched products by our predecessors but which until now had never been made sustainable and convenient for the “investors side” of the protocol which could only try to speculate on them.
In fact, technical products innovations are nothing more than a necessity for true concept innovation which consists in abandoning the idea of “A product is efficient if it is profitable for the team” to switch to the new “A product is efficient if it is profitable for teams and investors”.
INFLUENCED BY MARKET (Common DeFi Protocols)
In DeFi, over 90% of protocols are directly influenced by bullish but bearish market fluctuations.
As you may have noticed, most governance tokens have their liquidity paired with their chain gas token; here in Cronos, we can see how VVS, MMF, TONIC, and a lot of others rely on CRO.
This makes them more easily accessible by the users on the chain that must hold CRO to operate and it will also consist in a pump of the price once CRO’s one increased too.
Let’s have an example, assume we have the token EXMP paired with CRO. If CRO has a 50% price increase and no transactions are changing the ratio between our two tokens also automatically has a 50% price increase.
It looks very good but also means that if CRO’s price falls, the governance token will follow the decline without any real fault.
This fact is rarely understood by less experienced users who, seeing the price dropping, will start to panic and sell the token, creating a negative spiral that often leads to the protocol collapse.
MARKET NEUTRAL (AegisDOE Protocol)
Thanks to liquidity totally in stablecoins, our protocol is not directly affected by market fluctuations.
After having witnessed the collapse of numerous protocols built to directly follow the trend of the crypto world, currently not too healthy, we have decided to set up our project in a market-neutral way to be able to protect our tokens from possible new descents.
For this reason, the aegis, the unbreakable shield of Zeus, was chosen as a symbol. Access to our ecosystem takes place only through USDC, the most secure stablecoin currently available. This means that a surge in the market or its collapse will not influence the price action of our tokens which will only depend on the performance of our protocol.
We know that when fear rules the markets, all projects are indirectly affected, but we are also confident that in our case it will soon be demonstrated and understood that the market trend does not concern us on a technical level.
We are also convinced that this aspect is one of the main strengths and securities that will contribute to the rise of AegisDOE, also representing the beginning of a new chapter for DeFi, so far too tied to the cryptocurrency scenario.
SHADY (Common DeFi Protocols)
In DeFi, over 90% of protocols make it difficult for the users to see and understand how much a governance token is worth, regardless of its price.
Being strongly related to the idea of cryptocurrency and its highly speculative aspect has often made it difficult or impossible for investors to understand that, in DeFi, value can be assigned to a governance token, regardless of its price.
Hoping for an overvaluation, or to mask one already undergoing, the platforms often show little data relating to the protocols to make it more difficult for investors to determine the value for which it makes sense to buy or sell their governance assets.
However, this possibility of overvaluation also entails greater exposure to the risk of a possible and often lethal FUD.
CLEAR (AegisDOE Protocol)
We will move the focus from the price to the value, being not scared of exposing it on the frontline of our protocol.
Buys and sells are a fundamental part of the value of an asset as they eliminate its “debt” (profit not taken) and create credit (loss not closed), both positive aspects for its healthy growth.
On our platform you will be able to check the true value of the token in real-time, how it is calculated, the data necessary to do so, and how it has changed over time. This will cause buys to increase in moments of underpricing, building a floor and avoiding large momentary losses for the holders who will not panic sell creating a spiral towards zero.
This will also, in the case of overpricing, increase sells closing a large part of the circulating profits not taken, leaving the asset light and ready to grow in value.
UNSUSTAINABLE (Common DeFi Protocols)
In defi, more than 90% of the protocols have emissions that exceed their revenues causing a continuous devaluation of the governance token.
As in any business, having more costs than revenue is not healthy and will sooner or later lead to failure. In DeFi, costs are the emissions that create a sort of “debt” to the investor, which will then be extinguished upon exiting the protocol.
However, most projects have emissions far exceed their revenues, causing an overdraft debt that weighs on the shoulders of the last holders.
This fear of being left last, with nothing, drives investors to anticipate abandonment cutting the chances of success of many dapps.
SUSTAINABLE (AegisDOE Protocol)
Emissions / Revenues < 1
This is the basis of the development of our products.
We improved our products through testing and analysis of previous ones. We addressed unprofitable aspects and temporarily removed those for which a profitable solution hasn’t been found.
We’re actively working on finding a fix and will implement them back as soon as they’re developed.
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