Simetri In-Depth Report: Interpreting DeFi Aggregator’s Cutting-Edge OctoFi Features and Potential

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The paid membership service “Simetri” launched by Crypto Briefing, a crypto-asset research organization, released a report stating that OctoFi, a DeFi dashboard product, deserves the most attention this month. Crypto Briefing believes that OctoFi covers almost all the correct ways to build open source DeFi projects, giving it a great chance to win the favor of early adopters of DeFi.

Extended reading: ” Selected Good Articles from Chain News|Understand the growing DeFi aggregator

Written by: Crypto Briefing, Crypto Asset Research Institute

OctoFi is a DeFi dashboard product that aims to gather information about thousands of DeFi projects/protocols with potential profit opportunities. In the next two months, the project will introduce many new features on its platform and begin to distribute the income from fees to native token holders. Therefore, we believe that the project has great potential for growth.

Project Introduction

Currently, the decentralized financial industry is full of opportunities, and income farming, lending, and synthetic assets have all seen explosive growth. But with the continuous development of the industry, a question has also surfaced: how can users optimize their income in many DeFi agreements?

In fact, some development teams in the DeFi industry have proposed the idea of ​​building a dashboard solution. This solution mainly plays the role of a “one-stop shop” in which users can manage all DeFi assets in a unified manner. I believe that many investors have already used solutions such as Zerion and Zapper. These services usually “assemble” DeFi building blocks together to create a unified and convenient aggregator. Unfortunately, this type of solution has certain limitations, such as:

  • Users cannot invest directly in Zerion or Zapper because they do not have a token use case model;
  • As a centralized project, it is sometimes difficult to deliver new features quickly.

Now, a new competitor has appeared in the decentralized financial market. It is: OctoFi, which is a DeFi dashboard project developed by an anonymous team. It has developed a highly competitive product and has An active user community.

In the past few months, the development team behind OctoFi quickly established a platform. In contrast, other competitors may take several years to complete the same level of platform development. In addition, OctoFi offers more (early) products at the same time than other similar platforms.

However, OctoFi was not satisfied, nor did it stop moving forward.

According to the OctoFi development roadmap, they have devised ambitious plans in the next few months, and they are expected to provide DeFi users with a series of functions with significant market influence and much-needed services, such as predictions. Machine aggregators, decentralized exchanges (DEX), decentralized derivatives trading, etc.

However, for DeFi projects, the anonymous development team is usually a “red flag”, because once the project has problems, the scope of accountability is very limited. But compared to other anonymous projects, OctoFi is still very transparent, and team incentives can only be launched after the project is successful, which means that the premise for the team to get incentives must be to make the OctoFi project successful.

The goal of OctoFi is to become a completely open source, community-owned and not controlled by venture capital agreement. The project team plans to return all platform fee income to token holders, just like traditional companies distribute dividends. If the project ends up being as popular with the community as the large DeFi projects such as Uniswap and Sushiswap, it will likely generate millions of dollars in fee income.

From a theoretical point of view, OctoFi almost includes all the correct ways to build an open source DeFi project. This is also the main advantage of the OctoFi project, and it has a great chance to win the favor of early DeFi adopters and enjoy exponential growth. The well-being it brings.

In fact, DeFi projects such as yEarn Finance and Sushiswap have resonated similarly among users. Almost all of them have achieved amazing growth in less than a year, so OctoFi will have similar development potential.

This month we reviewed more than 100 candidate projects, but after considering various factors, we finally chose OctoFi as the “December Featured Project.”

What is OctoFi?

OctoFi is an open source DeFi aggregator. The project aims to explore a large number of investment opportunities for protocols/projects in the decentralized financial market and make user interaction easier.

Currently, the services provided by the platform to users mainly include:

  1. Allow users to directly trade tokens on the platform;
  2. Support participation in liquidity pools;
  3. Can vote on various DeFi protocol governance issues;
  4. Buy different cryptocurrency tokens.
  5. Track wallet transaction history on different platforms, making it easier to track complex smart contracts.

The OctoFi team initially only had two anonymous developers: Dr. Octavis and Mr. OG. They first launched OctoFi in September 2020, but now the team has 5-7 people engaged in OctoFi project-related work full-time. Dr. Octavis previously stated that they wanted to build a community-driven project from the beginning, while ensuring that the project is completely open source and fraud-proof.

In fact, the OctoFi development team always believes that DeFi users should try to trust projects more, regardless of whether these project development teams are anonymous or otherwise.

Based on this concept, OctoFi chose to build the project in a “trustless + verification” approach. They will broadcast to the OctoFi community the information that they could only provide to the project internal staff in the past, which greatly improves the transparency of the project and allows more Community members and token holders have a deeper understanding of the project, and then make wise governance decisions for the direction of the platform.

At present, OCTO token holders can already participate in platform voting and governance related matters.

Not only that, the OctoFi team will also publish a transparency report. Similar to non-profit organizations that disclose information according to regulatory requirements, the OctoFi team will disclose a lot of information in the transparency report, such as:

  • Every work carried out by the team;
  • The number of tokens to be processed;
  • Token lock time progress;
  • Tokens being spent.

However, the biggest difference between OctoFi and non-profit organizations is that they voluntarily disclose this information and update the report data frequently, instead of only updating once a year like non-profit organizations. At present, the OctoFi project has completed the code base review to ensure that the dashboard service is sufficiently secure, and they will conduct more review work in the future. In addition, OctoFi has also completed the integration and integration of multiple trading platforms and projects, including TradingView, Blockfolio Signal, Crypto Whale Bot, Kraken Exchange’s Cryptowatch, LunarCRUSH, and the open source online dispute resolution protocol Klero.

The upcoming “catalyst”

Up to now, the OctoFi development team has successfully completed the iterative work related to product construction, and has also released an ambitious project development roadmap. If OctoFi can release product functions as scheduled in December 2020 and January 2021, then it can It shows that the team has good potential and ability.

First, the OctoFi team is planning to launch a decentralized exchange. According to the team, the front end of this exchange is completely comparable to some well-known centralized exchanges in the market, but the back end uses a decentralized solution. Taking into account the ease of use of the dashboard, OctoFi’s idea of ​​building a product based on “value addition” is obviously very advanced, and it may even bring additional cost to the platform.

Secondly, the OctoFi team will also initiate derivatives trading, and then will aggregate business information from different DeFi lending platforms, such as Compound and Aave, to help users explore lending opportunities more easily. In addition, the OctoFi team is also very concerned about the non-fungible token (NFT) and encrypted collectibles industry, and will integrate OpenSea’s NFT token transaction interface in the future.

In terms of functionality, the OctoFi project plans to add a “drag and drop” function similar to Furucumbo and provide users with cross-chain token exchange services.

Finally, OctoFi intends to build an Oracle aggregator that can aggregate data from multiple DeFi oracles, and then provide the relevant data to DeFi applications based on the Ethereum blockchain.

There is no doubt that if OctoFi can develop rapidly in accordance with the development roadmap, it will be very beneficial for token holders, because they can not only get fee distribution income, but also enjoy the increase in token price. Special” income.

OctoFi development roadmap for December 2020 and January 2020

Simetri In-Depth Report: Interpretation of DeFi Aggregator's Cutting-Edge OctoFi Features and PotentialSource: https://docs.octo.fi/docs/roadmap/

In December 2020 and January 2021, the OctoFi project will accomplish several important goals, as follows:

In December 2020, the OctoFi platform plans to launch a fiat currency service portal. This will greatly simplify the trading experience and allow users to explore DeFi directly through the OctoFi platform, without the need to “detour” centralized exchanges to purchase ETH or ERC-20 tokens. Previously, OctoFi set the threshold of “1 OCTO” to enter the platform, but now they have decided to abandon this requirement, and then fundamentally change the project token economy.

In January 2020, the OctoFi platform plans to distribute fee income directly to token holders. Although the specific details of the current fee distribution model have not been disclosed, the plan is bound to optimize the OCTO token economic model based on powerful products, and it will also allow The market’s interest in OCTO tokens has surged.

In the past few months, the OctoFi project has witnessed a healthy increase in the number of token holders, and this trend is expected to accelerate in the coming months.

OctoFi circulating supply and project valuation data

Simetri In-Depth Report: Interpretation of DeFi Aggregator's Cutting-Edge OctoFi Features and PotentialSource: https://bloxy.info/token_holders/0x7240ac91f01233baaf8b064248e80feaa5

From an investment perspective, the current OctoFi token supply and market valuation are performing well, and the project is valued at approximately US$10 million. Of course, if compared with other DeFi projects under current market conditions, the scale of OctoFi projects is still small. Nowadays, some DeFi projects are valued at over 100 million yuan, such as Compound (US$673 million), Aave (US$1 billion), Uniswap ( 751 million US dollars).

The OctoFi project issued a total of 800,000 OCTO tokens, which are distributed as follows:

  • Public sale: 125,000 OCTO tokens are distributed through the bonding curve, and the price range is 0.18-1.08 USD;
  • Project reserve: 275,000 OCTO tokens will be allocated to the transparent project fund;
  • Interest-generating projects: 200,000 OCTO tokens will be allocated to interest-generating projects;
  • Early supporters: 200,000 OCTO tokens will be distributed to early supporters at a token price of $0.18.

Of the total supply of 800,000 tokens, 56.97% will be provided to the community in the following two forms:

  • Project reserve: the community will allocate expenditure budgets based on governance suggestions and voting;
  • Interest-earning projects: allocated to interest-earning contracts, and will be evenly distributed between project operating expenses and airdrop rewards.

risk

As long as the DeFi project is developed by an anonymous team, there will be risks involved. The YFDEX.Finance and Compounder Finance fraud incidents are vivid and it is difficult for victims to erase their tragic experience from their memories. Therefore, the team behind the OctoFi project may also use the platform to earn millions of dollars and then suddenly disappear and run away.

But as far as the OctoFi project itself is concerned, the founding team has implemented a variety of mechanisms to prevent similar risks from occurring and ensure that the team’s motivations are always consistent with the success of the platform. These mechanisms include:

  1. The tokens held by the OctoFi team will be locked for one year;
  2. Throughout the development process, all funds are paid by the OctoFi team themselves, rather than relying on external funds, which means they will be “self-financing.”

Another risk worthy of attention is the project’s smart contract bug. For example, the bZx protocol vulnerability has been exploited three times this year, and the last attack resulted in a loss of up to 8 million U.S. dollars. Although these bugs are unlikely to cause the token holders to lose funds directly, they will have a negative impact on the price of project tokens for a long time after the attack. Generally speaking, hacker attacks and contract bugs are common in DeFi applications, and it is basically difficult to completely avoid this risk.

It is undeniable that DeFi itself is a high-risk industry, but high risk also means that there is a higher investment return potential.

Therefore, when you choose to invest in these DeFi projects/agreements, you must first be prepared to deal with risks and prevent yourself from losing everything, so your investment amount should not exceed your own acceptable loss range.

How to track the progress of the OctoFi project

In fact, after you hold OCTO tokens, you can track multiple project indicators to understand whether the OctoFi project is on the growth track as planned. One of the most important indicators is the number of token holders. The greater the number of token holders, the faster the development of the community and the more attention the project itself receives.

In addition, you can also track whether OctoFi has completed the relevant work in accordance with the development roadmap. If the phased work in the project development roadmap is not completed as scheduled or there are substantial changes, it may indicate that the momentum of the project has begun to slow down. Of course, you can also join the Telegram group of the project to see what other users have said about the OctoFi project. Once the product fails to fulfill the promise, the user’s attitude will change quickly.

Finally, you need to interact with OctoFi products on a regular basis. This is actually the most intuitive way to understand the progress of the project. As long as the interface and functions of the application are improved, it means that the project party has listened to the voice of users and is actively upgrading the product.

Among the indicators mentioned above, if any one of them shows signs of deterioration, investors can consider gradually reducing their investment in OctoFi projects, but as long as OctoFi completes its development plan on schedule and gradually becomes a mature DeFi project, then invest in it It will bring considerable returns.

to sum up

Overall, OctoFi is an exciting project with extraordinary development prospects. In the next few months, the team should release new features and recruit new users as scheduled. The introduction of new trading features and the provision of legal currency entry will help the project ecology attract more users, and the new oracle aggregator will be added. It can help OctoFi integrate with some high-end DeFi projects, and then attract the attention of the wider DeFi community.

In addition, when the OctoFi project starts to distribute income to OCTO token holders, the market’s interest in the project will also increase significantly, which may “stimulate” the price of OCTO tokens soaring. For early investors who participated in the token distribution in the early stage In other words, there will be more returns in the future.

According to our analysis, as the OctoFi project follows the development route prospects, its token price may soar in the next few months. Therefore, we finally named OCTO as the “December Featured Project”.

Information disclosure: The author of this article holds Bitcoin and Ethereum.