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In less than 15 months, DeFi protocols on Ethereum now manage over $75 billion of different assets.

Eye-popping as it is, this wasn’t always the case.

For many months before the ICO hysteria of 2017, smart contracting and Ethereum were primarily thought of as experimental.

And for good reasons.

Cryptocurrencies and minted assets were highly volatile, laws were fuzzy, and inconveniently, there wasn’t an alternative where users, especially times of high volatility and price dumps, could find refuge and retain value.

Markedly, the rise of crypto adoption and the sphere coincided with the expansion of stablecoins.

These are digital currencies designed to cushion against the effects of volatility.

Stablecoins trail the value of fiat currencies—whose valuation remains steady within a given jurisdiction–and are therefore considered a store-of-value and a unit of account.

Stablecoins are Critical for Crypto and DeFi

Most of these stablecoins are minted in Ethereum.

Crunching numbers, $80.5 billion of stablecoins were issued in April 2021.

What’s more, in 2020, the network processed over $1 trillion of stablecoins. This was more than any other bank could, highlighting the significance of the platform.

As it is, Ethereum mints over 75 percent of stablecoins, up from half as registered in 2020. It coincides with the rise of DeFi and how revolutionary it is.

This highlights just how critical stablecoins are to DeFi and crypto as a whole.

Admittedly, crypto trading as a whole could be highly volatile, tearing up and down if there wasn’t a way to store value.

Still, most stablecoins, are priming as they are, rely on some form of custody.

For instance, USDT is minted by a centralized entity, claims to be fully backed, and is collaterized by fiat.

Fiat-backed stablecoins include USDT and USDC.

DAI is native to Ethereum and is algorithmic. However, novel as the idea is, it sometimes struggles with maintaining the USD peg whenever the demand is high.

However, none is interest-bearing giving it that incentive for users to hold safely.

Introducing the Gambit Protocol

Gambit Protocol wants to change this state and add on-chain leverage to the mix through a clean, easy-to-use interface.

Thanks to Hidden Crypto Gem youtube channel for this overview

Minting the USDG stable-coin is effectively a 1x short position and this is especially practical because of the level of demand for on-chain leverage. The need for leveraged longs outstrips shorts causing liquidity struggles for hosting platforms.

Gambit uses the strong demand for stable coins, adds fee-earning, and uses this liquidity to supply the big demand of long leverage in crypto.

A perfect match and bringing value to multiple groups of the biggest crypto users.

Interest-Bearing Tokens: USDG

Visiting its homepage declares the protocol’s primary purpose: Gambit is an interest-bearing stablecoins with leverage trading.

Gambit-Protocol-Overview

Their approach towards meeting their objective is to rid the need for full backing or asset collateralization.

Instead, they implement an innovative system where a partially backed stablecoin can generate interest for the holder while improving the protocol’s liquidity through leverage trading.

Unlike the traditional way of minting stablecoins requiring some form of over-commitment as collateral against price shocks, USDG—the Gambit Protocol’s stablecoin–would be minted viz-a-viz the level of demand.

Gambit’s stablecoin, USDG, can be minted from any whitelisted asset depending on spot rates straight from the protocol’s smart liquidity pool.

For every supported asset, users can mint USDG without worrying about slippage, spread, or liquidity troubles.

Take, for instance, if the price of BNB is trading at $630, a holder can mint 630 USDG by locking it in the Gambit’s system.

Slippage Free and Zero Spread Swapping and Leverage Trading

But it doesn’t end here. The free-floating, whitelisted asset can be used to open leveraged positions within Gambit.

Gambit Protocol Leveraged Trading

From leveraged LONG positions, the system can automatically support the collateral backing the system while concurrently generating interest for USDG holders from flat fees paid on LONGs.

Gambit would generate fees from minting or burning USDG and from trading activities—whenever a trader opens or closes a trader.

A small portion of these generated fees is distributed to USDG holders that make the stablecoin interest-bearing.

To keep the liquidity of Gambit high, a considerable portion would be re-injected into the Gambit ecosystem.

The more there are whitelisted assets, the more expanded the liquidity for longs would be—creating a feedback loop beneficial for the ecosystem.

Most importantly, these fees will gradually play a significant role in helping maintain the USDG peg, cushioning the stablecoin against unexpected price declines of whitelisted assets that may force liquidation.

Gambit Protocol Fees

The USDG Soft Peg

By enabling trading, the system can automatically maintain peg without the need of the end-user over-collateralizing or depositing collaterals.

The system can maintain the USDG close to parity with USD. Any fluctuation around $1 is adjusted via arbitrage.

If the price of USDG falls below $1, the system “burns” USDG for the backing collateral while also considering the number of open long positions of that collateral.

Gambit would have a 0.90 factor—capped at 0.997– to the collateral in the system versus the USDG in supply.

The ingenuity is that the system will support many whitelisted digital assets. Therefore, the redemption rate of each would vary depending on the asset.

All these forms a backstop that overly helps to maintain the USDG peg.

For every redemption, the Gambit system would also, in lockstep, increase the collateral ratio against the USDG debt.

Gambit Protocol (GMT) Tokenomics and Market

The Gambit Protocol is on the Binance Smart Chain (BSC).

The GMT token is used for governance, controlling aspects such as fees charged on minting, burning, or trading.

401,469 GMT tokens were distributed via whitelisted pre-sale where each token sold for 4.5 BUSD. XVIX token was also accepted as a means of payment.

There was a hard cap for the non-XVIX presale of 900k BUSD.

There will ever be max 401,469 GMT tokens in circulation, all of which have been fairly distributed. This means no inflation on GMT.

The GMT token was first listed on BSC’s PancakeSwap in early Mar 2021.

The listing price stood at $5 and its market cap at $2 million.

There is a variant of GMT known as the xGMT. This is the fee receiving token of the Gambit protocol.

There will be 100k xGMT tokens. Its distribution will be as follows:

Gambit Protocol Yield Farming
  • 72k distributed over nine months to liquidity providers of the GMT/USDG and xGMT/USDG in PancakeSwap.
  • 23k managed by Gambit DAO
  • 5k to be distributed to the founding team and vested for two years.

On the other hand, fees generated from Gambit would be distributed as follows:

GMT is fully diluted with over 401,469 tokens in circulation with a market cap of $21 million or above 10.5X increment. The initial market cap stood at $2 million upon listing on PancakeSwap.

Gambit Protocol GMT Price Action

GMT is trading at $53 at spot rates for a near 12X ROI for holders who got in during the pre-sale.

Traders who exited at the token’s all-time high of $131 made a 26X ROI.

To trade GMT and xGMT it’s recommended to mint USDG first at https://gambit.financial/trade

Presently, GMT is only available for trading on PancakeSwap and the most liquid market trades in USDG here: https://exchange.pancakeswap.finance/#/swap?outputCurrency=0x99e92123eB77Bc8f999316f622e5222498438784&inputCurrency=0x85E76cbf4893c1fbcB34dCF1239A91CE2A4CF5a7

You can trade GMTx with the most liquid market here: https://exchange.pancakeswap.finance/#/swap?outputCurrency=0xe304ff0983922787Fd84BC9170CD21bF78B16B10&inputCurrency=0x85E76cbf4893c1fbcB34dCF1239A91CE2A4CF5a7

Short Term Catalysts

  • Gambit has been live for a week now and traded more than 80 Million Volume which resulted in a first week fee distribution of $79,826.79. That’s just epic and big evidence the protocol is working as it was planned for.
  • USDT and USDC the most used stablecoins give 0% APR. Swapping them with zero slippage to USDG at a stable price of $1 gives you currently 6.51% APR. This is unique and I see many make the switch to be much more capital efficient and immediately offers absolute trust unlike centralised backed stablecoins which rely on human audits and regulations.
  • Viz-a-viz the general stablecoin market, USDG is minuscule. Still, it’s easy to see why GMT is grossly undervalued at spot rates because of the project’s objective.
  • Project on-boarding is more accessible even for newbies. This is because the project’s team made the user interface intuitive and very clean. For instance, leverage trading works just like one would in PancakeSwap with the addition of a button to choose 2x, 3x, 5x leverage. Choose * to take up to 30X leverage.
  • Gambit Protocol’s decision to launch from the BSC means cheaper transactions and a possibility of carving out a significant market share in a relatively young platform.
  • The Gambit Protocol is perhaps the first DEX to offer perpetual leveraged trading on the BSC. The ability to mint USDG without over-collateralization, spread, or slippage from whitelisted assets gives the interest-bearing token utility.
  • A combination of interest-bearing and leverage trading in a self-adjusting system presents a unique value proposition unique to DeFi. Further integration of Chainlink Oracles—useful for swapping—gives Gambit an edge.
  • The creators of the Gambit Protocol are experienced and have created XVIX—a hugely successful DeFi project whose investors are deep in green. The lead developer is known for his hard work and unique intelligence I have rarely seen before in other projects.
  • Compared to other projects in the same niche, GMT’s FDV is around $21 million, meaning there is more room for growth and profits for investors.
  • As GMT’s liquidity builds up through listing at CEXes like Binance, its value will erupt.

Long Term Catalysts

  • By using the GMT platform it quickly shows us how this solution works better than MKR, DAI, SNX and PERP. The Myspace-Facebook story of DeFi? Sorry bluechips :(
  • Yield farmers are already flocking to earn three and four digits yields on xGMT and GMT pools.
  • The promise of deeper liquidity and the absence of slippage would see more traders flocking to the protocol since they can even trade for free—BSC’s transaction fees are near negligible.
  • The project plans to white list more assets and drastically improve the overall liquidity of the protocol. Whitelisted projects, unlike competing systems, are ordinary assets like wBTC, wETH, and not just stablecoins.
  • As we advance, the Gambit Protocol will launch on Ethereum Layer-2, meaning GMT would find even more users, inevitably pushing its prices higher.
  • GMT staking is live. Gambit Protocol team also plans to introduce advanced orders for leverage trading and also integrate with exchange aggregators.
  • Gambit Protocol’s smart contracts are audited by ABDK Consulting and industry experts around the team. ABDK is the same blockchain security firm that audited Uniswap v3 smart contracts.

Data is the new currency. The play with data has seen companies reap billions simply by collecting every keystroke of freely generated information. 

This can be from creating a platform where users are product, or through other covert operations placing these agencies at the forefront. While blockchain platforms claim to be in purpose to cure the data disease, their efforts are have been weak and near ineffective. 

Simply put, the current systems and mode of interventions are feeble in the face of the data crunching giants keen on maintaining status quo. 

The only problem with this is that the more it stays like it is, and especially in the face of a global crisis like we find ourselves in—literally sleepwalking into, the global economy should, by all means, be prepared for the boom and busts due to the failure of companies and governments to roll-out (often to their disadvantage) assets that gives the end-user total control of the value of their data.

Data as Currency

Thing is, what if there is a way of collecting all of the world’s unstructured, personalized data, and assigning value? What if a next-generation web browser is rolled out in such a way that a casual web browser can perfectly sync with decentralized applications powered by distributed ledger technology? 

If this is possible, a perfect circular data economy would be created where data—whose quality is determined by the quality (drawn from the action of the user across the internet), can be valued. 

The newly created personal data value (PDV) is then used within an ecosystem to replace fallible fiat. As fungible money within a true digital economy, user data secured through decentralization–represented as DecID (or decentralized identity (DID)) is valued and used as a pass to access several on-chain features. 

Specifically, because PDV is tied to reputation which is a metric of quality, DecID finds immense use especially in open finance (DeFi). This, by all means, will found the next wave of financial revolution where data can technically replace fiat money, opening new windows of opportunity for all and sundry since the system is anchored on distributed ledger technology, immune from the circular nature and boom and bust common in the fiat world. 

Introducing Decentr (DEC)

This is exactly what Decentr does. 

At core, the project wants to usher in a radically different socio-economic paradigm model to (as described in their whitepaper) “modulates the excesses of the mainstream economy and the fractional reserve banking system that supports it by ensuring exchange rates between all currencies, fiat, digital and data, are controlled at the level of every user.” 

This way, Decentr fundamentally redefines the relationship between data and economics through an innovation that prioritizes local control of valuable keystrokes of data often generated unconsciously. 

To achieve this goal, the goal is to first decentralize data control away from corporations and governments for permanence and direct control at an individual level. 

After that, user data is packaged and made valuable before being turned to money that’s useful in a digital economy as an energy-efficient medium of exchange.  

Admittedly, a true digital economy won’t be viable without a decentralized internet of value where data is moved cheaply and at near-instant speeds. 

Hallmarks of a flawless digital economy are security, speed, control, and data used as fungible money controlled at an individual level.

For complete decentralization, the Decentr platform will serve as open-source software that can be used for storage and sharing solutions but most critically, acts as a user layer for blockchain. 

As a user layer, Decentr will be user-centric, scalable, secure, and safe meaning the platform will automatically create a 100 percent decentralized web 3.0/4.0 solution compliant with EU’s General Data Protection Regulations (GDPR) rules.

But what’s interesting about Decentr is their venture into finance through decentralized Fintech–(dFintech) that comprise dEx—a platform where listed assets and currencies can be traded and modulated by a user’s PDV, dPay, dLoan)–that its digital economy requires and underpinned by the system’s Deconomics. 

This reserve will prime dFintech and will always be under the control of Decentr but not available for trading in the open markets. Instead, it will be used for liquidity and underwriting decentralized insurance enabling free, fluid exchange of data into money and vice versa.

As part of the whole, Decentr dLoan will be conceptually different from mainstream DeFi solutions as it inherently enables all cadre of participants (enterprises and regular users) to accrue interest (flexible and personalized to a user’s PDV) from the crypto loan market regardless of the amount of DEC held in their dWallet.Enabling this will be a supportive and interconnected functions underpinned by the DEC reserve, PDV, and dPay-—which offers unmatched liquidity.

Decentr Project in Summary

  • Decentr is pushing the adoption of blockchain and Distributed Ledger Technology (DLT) by building a blockchain agnostic platform where DeFi dApps can operate and communicate with each other seamlessly. They already have a partnership with Ethereum and are deeply connected with Holochain and Tomochain. The team seeks to create a bridge where the latter’s DeFi dApps can connect to those active in Ethereum (the dominant chain). For efficiency, they will implement ZKsync for cheap and near-instantaneous of ETH or related transactions. 
  • Moreover, Decentr aims to create value out of data through Deconomics where its token, DEC, will be centrally positioned to act as fungible money exhibiting all positive traits of fiat. As money, DEC can be used as payment of goods and services at Point of Sale (PoS) terminals. DEC can also be loaned through their platform’s native DeFi features as dLoan, or traded for fiat or other assets through Decentr’s dEx. A user’s PDV (the exchange rate) will determine their annual APR of every amount lent through the Decentr investing pool. A favorable PDV means a user can get uncollateralized loans from the dLoan platform as well as from external DeFi dApps like Aave and Compound. 
  • The platform will also roll-out an extension that vastly improves on the Brave browser as a gateway to a decentralized ecosystem where data is packaged and valued securely and under the control of individuals with exchange possible via the dEx. The team says their web browser will be faster than Tor (even browsing onion addresses). Towards this goal, Decentr weaves in their advanced decentralized communication and Fintech features into their web 3.0 interface. 
Decentr Web 3.0 Architecture
  • Besides, Decentr has an interest in IoT, and are currently researching on a hardware application called the Smart Chip Node (SCN) using Decentr software. SCN will comply with LTE standards but also has built-in support for 5G.

Team

Decentr Team

They have to offices, one in London, and the other in Minsk. 

  • Nikita Anikeev is the CTO and co-founder
  • Paul Sluszko is the COO and co-founder
  • Rich James is the CCO and co-founder

The key development team in Belarus comprise:

  1. Maksim Ramanousk the lead developer
  2. Ivan Kantaef the senior developer
  3. Alexei Mayorov the senior developer

Development partners in Spain are:

  1. Prof. Juan Manuel Corchado, a software engineer
  2. Dr. Javier Prieto, a software engineer
  3. Diego Valdeolmillos Villaverde, a software engineer
  4. Agustín San Román Guzmán, Research assistant

Marketing and dissemination partners are: 

  1. Lee Hirschmann, the lead marketing strategist
  2. Rodolfo Grimani, communication Consultant
  3. Gianluca Rossi and Lorenzo Impronta are R&I consultants

Partners

Decentr Partners
  • Black Edge Capital, a blockchain fund, consultancy, and service agency.
  • The Bioinformatics, Intelligent Systems, and Educational Technology (BISITE) Research Group, formed by a group of researchers interested in emerging technology including AI, IoT, and Smart cities.
  • Rotechnology are experts in communication design.
  • Holochain (Nikita and Rich held an AMA with Holochain representatives on July 21, 2020.

DEC Tokenomics and Distributions

The native currency of the Decentr protocol is DEC and is ERC-20 compliant. Its utility is from the ecosystem’s Deconomics. DEC primes Decentr, and is used as an exchange between all data and fiat as it primarily draws its value from structured data and the activity of its integrated DeFi features including dPay, decentralized insurance, dLoan, and dEx.

To summarize, DEC will be:

  • Used as a mode of payment
  • A tradable unit of value 
  • A unit of conversion
  • Used to capture the value of user data and network’s activity
  • Underwriting the platform’s decentralized economy

The initial circulating supply is set at 61.5 million DEC tokens, and the total supply is set at 1 billion tokens.

The DEC’s contract address is 0x30f271C9E86D2B7d00a6376Cd96A1cFBD5F0b9b3 (check Etherscan). At the time of writing, there are 2173 holders.

DEC Token Distribution

7.5 million DEC tokens are sold through an IDO in different stages to raise $1.25 million.

DEC seed raise was completed in 2019. $250,000 was raised. 2.5 percent of the total supply was sold each for $0.01. Notably, a majority (75 percent of the initial 50 percent) of the unlocked tokens sold during the seed will be used for dEx liquidity.

Decentr DEC Seed and Private Token Sales

The private sale of DEC ended on July 13 at Dolomite. It ended only after 10 minutes. Only approved users participated. ETH and wETH were accepted currencies. Each token was sold for between $0.0141 and $0.02.

Decentr DEC Distribution
  • The team will control 100 million DEC tokens, but tokens locked for one year. (Can be locked up further as a proof of commitment from the team)
  • Partners and advisors will control 100 million DEC tokens but tokens locked for the next six months.
  • Foundation will control 326 million DEC tokens. Tokens will be locked for six months.
  • The Decentr Reserve will account for 400 million DEC tokens. All these tokens will be locked in the mainnet and never sold in the open markets. 

7.5 percent of the raised funds will be used to build liquidity at Uniswap, Balancer, and other DEXes listing DEC.

However, holders of DEC (that is private and public sale participants) can take part and earn fees when building liquidity on Balancer or Uniswap.

DEC Markets and ROI

Decentr Markets

DEC is already listed at UniSwap, Balancer, Idex, Hotbit, and Hoo, according to Coingecko. However, most trading takes place at UniSwap where the DEC/ETH is listed. 

Only Hoo supports the DEC/USDT pair though the spreads are huge (4.7 percent) and the market is still thin with a $111k 24 hour trading volumes. 

UniSwap’s liquidity is decent and spreads low, 0.6 percent. A $5,000 block trade will go through without much slippage.

Decentr DEC Market Price

DEC is currently trading at $0.133 and is up 68 percent in the last trading week. From this, private token sale participant has posted an 8.5X return on their investment in USD terms.

Short-Term Catalysts

  • The team is building liquidity and have currently being listed outside of DEXes. As a quality project, it’s only a matter of time before DEC is listed by mainstream exchanges. Already, DEC is available at the MXC exchange. UniSwap’s liquidity has also improved following DEC’s successful IDO. (7.5 percent of collected funds will be used to build liquidity at different DEXes supporting DEC). Poloniex also supports DEC.
  • DEC market cap is still low and liquidity patchy. Therefore, with what the project promises, it is likely that returns will be high if key milestones are struck through 2021.
  • The team is also experienced. However, over and above everything, the DEC community is very supportive and vibrant. Decentr’s minimum viable product (MVP) will likely launch by the end of the year as revealed by Rich James. 
  • There is vesting and lock-up periods for purchased token. The team’s DEC will be locked up for one year with vesting though there is a possibility of lock-up. As it is, no new token will hit the open market until early 2021. DEC’s initial supply has been set at 61.5 million from the 1 billion total supply.
  • Ahead of the MVP, the team plans to announce partners, release more news, and carry out more AMAs. 
  • Holochain has deep ties with the project and remains one of the earliest staunch supporters. This only shows the quality of the project and what Decentr aims to do with data. With data being money, and DEC deeply tied to all activities within its ecosystem, at spot rates, the token seems undervalued.

Long-Term Catalysts

  • As a metric of quality, DEC tokens were snapped up in 10 short minutes in their private sale IDO. Few projects sell out as fast.
  • Further boosting DEC are plans of integrating the platform with several verticals including the Banking and PSP industry, Brick and Mortar supermarkets and groceries, and the lucrative online advertising industry. These industries will create demand—as Decentr charges a two percent fee for any data exchanged within its ecosystem–for DEC, pushing prices higher. 
  • Part of Decentr is to change how DeFi works as they build a circular economy. With interoperability (it is blockchain agnostic), their success will only see DEC edge higher as it gains prominence since their key innovation is the leveraging of data as currency useful in DeFi dApps.
  • Already, the Bank of England (one of the oldest in the world) has reached out to the Decentr team to discuss the potential of rolling out a CBDC. The goal, as per their report, was to “determine the merits and compatibility of our technology and Deconomics model where this pertains to the BoE’s plans to introduce a UK CBDC.”
  • So disruptive will be Decentr’s DeFi features–like dPay, dLoan, and dEx, that if successful, it shall replace Swift, clearinghouses, and other payment services. DEC will evolve to be true decentralized money oiling a digital economy while keeping data secure.

Enjoy #DeFi with the Best Prices across Exchanges

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