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As one of the core pillars of the Defiraverse, our long-term vision is to create a crosschain DeFi super app, integrated within a fantasy game world. Each supported blockchain will host a multi-primitive DeFi protocol (e.g. DEX, lending, liquid staking), and its usage will be intimately linked with the item and progression systems of the game layer.
Each protocol and blockchain will have its own governance token (e.g. TRANQ, MIMAS) and unique capital city inside the Defira game world. DeFi primitives are represented as areas in the capital (e.g. market, bank, etc.), and all DeFi protocol tokens will have utility in-game, being a resource required for critical features, such as wishing for new heroes.
The platform is also accessible through a traditional web app frontend, making them full-fledged standalone DeFi applications for non-gamers purely interested in DeFi functionality. We envision that eventually all major DeFi primitives will have a presence in the Defira super app.
As the first step, we will begin by integrating Tranquil Finance, our existing DeFi protocol on the Harmony blockchain, into the Defira metaverse. It will be a testbed for experimenting and developing our ideas for Defira before expanding cross-chain.
Concept art of in-game marketplace (DEX)
Although DeFi is very young, experience has shown that it is an extremely cutthroat and competitive landscape. DeFi primitives and protocols are easy to fork, and it is hard to gain traction and differentiate amongst a sea of competitors. Projects need to compete aggressively for liquidity and users with often unsustainable token incentives. Most protocols fail to gain any meaningful adoption.
Because token rewards are so vital to the success of a DeFi project, even large established projects often have difficulty competing when they expand multi-chain. Although they have a recognizable brand and are deeply trusted, these protocols are unable to offer adequate incentives by themselves to compete for market share. Smaller multi-chain protocols fair even worse in this regard.
Based on these observations, our multi-token strategy for Defira allows us to properly offer incentives and compete in order to become a major player on each blockchain we deploy on. Each blockchain is a unique ecosystem, requiring different levels of incentives and partnerships for success. At the same time, the Defiraverse also lets these protocols share a powerful and unified brand with established trust and marketing.
Additionally, in cases where it makes more strategic sense, we can partner with more established protocols to support certain DeFi primitives.
Concept art of in-game farm (yield farming)
The integration of GameFi opens up an entirely new design space to experiment with new and innovative models for tokenomics and utility beyond what is possible for a traditional DeFi protocol.
The chain tokens for Defira's protocols, like TRANQ and MIMAS, are also resources that can be used in the Defira game world. Tokens consumed by in-game operations like wishing for a new hero will be burnt, potentially making the token deflationary. As new gameplay features are released, the utility and value for these tokens is further increased.
Additionally, game elements, like hero NFTs, can be used to improve DeFi features, such as increasing farming yields or unlocking tokens faster. Traditional tokenomics models, such as locking and veTokens, can be represented as NFTs with powerful in-game applications.
We also want to explore giving users in-game items when they use our app, such as performing a swap. These new models may ultimately prove more sustainable than the standard liquidity mining model.
This fusion of DeFi and GameFi gives the protocols in the Defira ecosystem a competitive advantage over traditional DeFi applications, allowing us to build a sustainable competitive moat that cannot simply be forked. However, the reverse is not true, and new DeFi primitives and models that gain traction can be incorporated under Defira without needing a first mover advantage.
As a game and multimedia franchise, Defira allows us to reach beyond the current demographic of DeFi and crypto users to potentially attract an entirely new audience into the space.
Concept art of in-game bank (money market)