New Year’s Altcoins Spotlight: DeFi Vault

11 min readJan 11, 2021

During these days of consolidated bull-run, we’re witnessing the explosion of the king of cryptocurrencies — Bitcoin - while “the court” — Ethereum and ERC-20 -are keenly following along. It’s therefore hard to spot on solid, new projects, especially in times of abundance like the one we’re currently experiencing… but we believe Defi Vault might have what it takes to grow and thrive even beyond the glorious bull run that’s taking shape ahead of us.

What is DeFi Vault?

In order to describe what caught out attention about DeFi Vault in comparison to most new third-generation crypto projects, we have to keep in mind what Decentralized Finance, at a base level, is: a new technological and financial ecosystem that, by means of new IT protocols on top of the decentralized blockchain networks, implements the vision of creating secure, transparent, widely available, censorship-resistant and democratic tools from any of the classic financial instruments.

Keeping this in mind is key to see how DeFi Vault differs completely from this canonical definition. And not just on the “financial aspect” since, as we’ll read later on, DeFi Vault’s ambitious goal highly involves carving out an important space in the NFT and Blockchain Gaming markets as well, bringing in unique innovations on those sides. But let’s proceed in an orderly fashion. And in order to do that and get into the juicy details of the DeFi vault’s ecosystem, a more contextual and chronological perspective can be of aid.

Brief History of DeFi Vault

DeFi Vault’s inception date and first official announcement were made on October 28th. After a successful first round of airdrop, which was completed on December 23rd - and which will distribute more than 3,000 $VAULT tokens to the community participants at the end of the token sale event - the project managed to hit several early milestones in the roadmap:

The first round of the token sales went live on December 20th. 10,000 $VAULT tokens were sold out in less than 7 minutes.
The flagship website, which will support the NFTs & G4G (Gain4Gamers) platforms (more on these later), was completed on December 29th, using The Graph Protocol as the main front-end querying network for the NFT infrastructure.
Internal testing was completed ahead of its time, and the NFTs platform — first announced for Q3 2021 is now bound to come on Q1 2021.
On January 4th, 1INCH and UniSwap simultaneous listings were made public, together with the announcement that both the 1rst and 2nd round of the $VAULT token sales participants would receive a shared airdrop of 150,000 1INCH tokens.
Finally, the second round of the token sale is now live (January 5th) and will distribute 25,000 $VAULT tokens to investors.

So, as outlined above, during the initial stage of the token distribution, the DeFi Vault team's main goal was to fairly distribute the $VAULT governance token among the community and, at the same time, getting exposure to the main financial protocols in the crypto space.

“We believe that a fair launch doesn’t mean attracting whales with big liquidity that will drain rewards and dump on the rest, this is far from being fair and we’ve seen it everywhere.
Instead doing an initial raise with the sole purpose of providing liquidity to Uniswap, Justswap and Pancakeswap pools is the best decision to take. On top, we will cap individual allocation to a max of 10Eth/person.
Since the entire amount will go directly to the Uniswap, Justswap and Pancakeswap pools, nobody is incentivized to dump as he will loose money, but will be incentivized to participate in farming pools to earn more VAULT.”

The next steps are then showcased in the roadmap and below we will detail the main features surrounding DeFi Vault’s value proposition.

DeFi Vault Technology and Advantages

As briefly explained earlier, the DeFi Vault protocol will offer its stakeholders a tripartite, yet dense value offering, by combining DeFi with NFTs and also a unique gamified experience (G4G).

Speaking of DeFi Vault’s … DeFi Features

On the financial facet, DeFi Vault started out as an experimental protocol, which builds on more notorious, reliable, and battle-tested projects (Compound, Synthetix, and Yearn, to name a few), borrowing some of the most exciting innovations in programmable money & governance and aiming to synergize their best features in a unique platform, whose innate mission is to become the reference point for many investors and users.

The team’s declared mission is to help investors maximize their yields and profits by getting exposure to the highest yield available across selected, decentralized finance protocols, crossing blockchains borders, by allowing interoperability between Ethereum, Polkadot, Tron, and even Binance Chain.

DeFi Vault’s smart contracts will allow staking and farming of the $VAULT token, all the while pursuing high yielding strategies, with a deflationary supply at its core — thanks to a strong Stake & Burn and Spend & Burn mechanism that will ensure the protocol’s value appreciation over time - and coupled with fair distribution mechanisms that will also reward active community members. At the same time, the ecosystem will be backed up by fundamental governance pillars — on-chain governance that will guarantee decentralization and democratic, community-based protocol evolution and management.

So, how will these “Pareto-Efficient” yields be achieved? And overall, what are the core features behind the DeFi Vault’s products and services? Here are some compelling factors:

1.Accessibility - The DeFi Vault protocol will be structured in a way that will allow for multiple pools and staking options to be offered over a longer and. continuous period of time. Thanks to a user-friendly UI, DeFi Vault users will be guided through an intuitive, delightful user experience.

2.Security - To ensure a secure protocol, VAULT will leverage a unique design where tokens will be secured via a series of time-locked smart contracts. At the moment VAULT’s smart contracts auditing is ongoing and being performed by 2 independent and renowned blockchain auditing firms to further ensure the highest level of security.

3.Intuitive Governance Model - To facilitate a healthy and flourishing ecosystem, DeFi Vault’s will incorporate a unique on-chain voting mechanism that will introduce flexible voting parameters. This governance model will be a first of its kind and will allow for a unique, cost-free voting system that will be publicly verifiable by VAULT holders.

4.VAULT Trustless Protocol - DeFi Vault will be one of the few DeFi protocols that will store tokens in reliable, fully audited, time-locked smart contracts to eliminate any possibility of exploits.

5.Farming - Farming through DeFi Vault will allow stakeholders to earn rewards by providing liquidity in a variety of pools (soon to be announced).

6.Staking - The DeFi Vault protocol will allow users to stake VAULT to earn generous ROIs.

7.VAULTS - VAULT earn will be a yield aggregator for lending platforms that will rebalance for the highest yield during contract interaction. VAULT’s farming strategies will automatically switch towards the highest yielding assets and distribute the profits among the participants. The vast majority of the past and upcoming assets will be farmable through DeFi Vault.

8.vInsurance - DeFi Vault plans to offer users “extra peace of mind”, giving them the chance to enter optional insurance policies and mitigate risk via Nexus Mutual.

9.Token Burn - After Phase 2 of the protocol (Q2 2021) will go live together with Staking, token burn will be implemented via a fee system. The fees will be applied on operations such as

Selling (5%)
Transfering (2.5%)
UnStaking(5%).

and will be redirected 50% to the Staking pool and 50% to a burn address, thus constantly reducing supply, until 1/5th of total initial supply is reached. Since the initial total $VAULT supply is 100,000 VAULT, after token burn will have taken place there will be only a minimal amount of 20,000 $VAULT left in circulation, therefore contributing to the potential & substantial appreciation of the token.

10.DAO Governance - DeFi Vault’s future will be entirely controlled by the community of VAULT holders, who will be empowered to determine and to update the functionality of DeFi Vault’s protocol, including incentive design, VAULT treasury, and much more.

11.Cross Chain - DeFi Vault will operate as one of the main (if not “the” main) heterogeneous cross-chain DeFi yield aggregators in the crypto universe that will run on the Ethereum, Binance Smart Chain, Tron, and Polkadot blockchains.

12.Locked Liquidity - 85% of the proceeds from the LGE (Liquidity Generation Events) will be paired with their corresponding VAULT tokens and will be forever locked. Admin keys will be burned as well to keep everything safe.

DeFi Vault - NFTs

As if it weren’t enough (and just as hinted earlier in the article), the DeFi Vault’s team added more to the plate, by recently announcing the future implementation of the NFT and G4G (Gaming4Gamers — more details in the next paragraph) components, which will seamlessly combine with the DeFi features listed previously.

The team’s focus is mainly headed toward adding value to DeFi Vault’s offering (and thus to its investors) by fully drawing from the best from each of these worlds in the crypto space, in the ambitious, yet tantalizing attempt to create a magnificent user (and gamer) experience.

“The key mission of DeFi VAULT is to bring NFTs to the mass-market.”

While most of the features in the works are yet to be announced by the team, some announcements on the actual and future implementations of the NFT platform have already been made public:

A gamification engine will be introduced to DeFi Vault after the tokens will be fully distributed.
The Graph Protocol will power the frontend NFT platform, with the underlying aim to create an easy to navigate platform for any user, regardless of his/her crypto knowledge and experience
The NFT ecosystem which will be implemented will be fully operable across multiple platforms (again Ethereum, Polkadot, Tron, and Binance Chain are the platforms which are currently being worked on) and will bring together Social, 3D, AR, gamification, and many more - yet to be announced - innovations.
Blockchain-based digital collectibles will play a key role in the upcoming DeFi Vault’s mass-marketplace, integrating and synergizing fully with the DeFi core mechanisms at the heart of the team’s project.
The NFTs will be fully animated, storable, displayable, and interactable collectibles on the DeFi Vault’s platform, and will integrate deeply with the ecosystem’s token, $VAULT.

The latter point delves further into the $VAULT’s tokenomics, which intertwines almost symbiotically with DeFi Vault’s aspects by design. In fact, $VAULT token hodlers will be rewarded by several initiatives and via several future platform integrations:

The Elite Club
By staking $VAULT, Vaulters will be able to join an exclusive DeFi VAULT Elite club which will earn them NFT airdrops, collectible rewards, event previews, VAULT bonuses, and extra platform features.
Create
Vaulters will have the chance to own digital collectibles and fan tokens using DeFi Vault’s development tools, allowing for the creation of personal brands or even monetizing creations and skills on the platform.
Rewards
Users will be able to reap full rewards potential by simply being active - the more Vaulters do on the platform, the more rewards they will get. These activities will include the completion of competitions, quests, trades, govern participation to be eligible to receive NFT and VAULT rewards.
Farm
Users will be able to farm $VAULT to receive exclusive/unique, tradeable NFTs.

DeFi Vault’s Latest - Gain4Gamers (G4G).

“Make money off your skills. Built on Polkadot. Powered by NFTs and DeFi”

Last but not least, DeFi Vault’s latest, highly regarded announcement was the DeFi-NFT Powered Gaming Platform “Gain4Gamers” - a blockchain-powered gaming platform where according to team’s official statements:

[…] all gamers will be able to make a living doing what they love the most: Playing videogames […]

The vision behind this challenging, yet potentially sector-disrupting endeavor will practically try to concretize on the final creation and development of a blockchain-powered tournament platform that will allow gamers at all skill-levels to monetize their skills.

Again $VAULT will interlace deeply with the innovative Play2Earn mechanisms behind G4G. Players will be able to earn $VAULT not just by setting a stake and winning “ranked” games or by challenging friends, but also by actively engaging in games (independently of their winning or losing score), as well as by “progressing” — that is, by growing their ranking position, (provided they’ve staked $VAULT tokens) and therefore unlocking NFT rewards, which will grow in exclusivity/rarity/value together with their ranking.

Thus, thanks to these “play modes”, gamers of all skill levels will be able to earn money playing video games, without the need to be pros to be rewarded fruitfully.

“Our vision is to build a fair and trusted Gain4Gamers blockchain-powered gaming platform where gamers can play their favorite games, challenge an opponent, bet on their own victory — enabling ALL players to make money off their skills.
DeFi VAULT is about using blockchain to allow for skill monetization through digital currencies and assets with open market dynamics, giving gamers a superior sense of ownership and control.
DeFi VAULT will create new revenue streams for gamers: earn with their winnings; earn crypto rewards for their engagement; and earn NFTs with their progress such as trophies, collectibles and in-game assets they own and are able to trade or monetize”

It is clear then that G4G lofty vision aims to create a Blockchain-based Gamer Economy, oriented towards peer-to-peer gaming and item economies and maybe partly following in the footsteps of other illustrious first-movers like Immutable’s GodsUnchained, Enjin, or Axie Infinity, but - at the same time - molding and shaping into something unique, thanks to unique rewarding mechanisms (e.g. “Play to Engage” or “Play to Progress”) and the attempt to achieve a daring, high-flying fusion & harmonization among DeFi and NFTs.

More News Coming…

Whether you’re new to the space or already a DeFi veteran, DeFi Vault might represent an excellent DeFi opportunity for the future. From its low token supply and deflationary measures, to its staking/farming rewards, NFTs and Insurance products, NFTs & gamification integrated, original opportunities.

There will surely be more to add, as news about the project is out with almost daily frequency. If this article managed to spark some curiosity on your end about DeFi Vault, I highly suggest following the “do your due diligence and research” crypto wisdom and start by checking out the following links below. In the meanwhile, happy bull-run!

Join the DeFi VAULT Community

If you are interested to follow DeFi VAULT and get in touch with the project team members, you can participate and receive timely updates from the following official channels:

Website: https://defivault.finance
Twitter: https://twitter.com/DeFi_Vault
Telegram: https://t.me/defivaultofficial
Medium: https://defivault.medium.com