The bull market rages this time stronger than the last bull run of 2017 into early 2018. Unlike what fueled the previous bull run, this current run, which started in late 2020, is driven by big institutions and firms. These firms have finally accepted the trustless, immutability nature of blockchain currencies. In particularly blue-chip cryptocurrencies like Bitcoin and Ethereum, in what seems like a hedge against rising value loss of the Dollar.
Embracing Decentralized Finance
As many will accept, the current bull run results from the rising popularity of the blockchain community’s decentralized finance aspect, which has gained such immense popularity, wide use case, and innovative high-speed growth. Over 1 billion dollars, was the value locked during August’s Defi run, into October last year. Top Defi platforms like Ethlend Aave have been in existence in the previous bull run but were mostly unknown.
Decentralized finance has got many use cases that have changed today’s financial landscape incredibly, particularly the enhancement of the cryptocurrency network’s borderless transaction, a core aspect of the Bitcoin blockchain technology. Features that had to seem to take crypto way beyond what we had hoped Defi could achieve is the staking, lending, flash loan aspect of this unique innovation of decentralized finance.
Staking as an investment opportunity
Staking ushered in the crypto-economy, which we all enjoy today in Defi platforms. It’s a more flexible way of earning passive income with the Defi application by having your coin fixed for a long time. However, there are two types of staking operation, the one carried out on a network to achieve consensus and earn the staker a validator right, for example, staking mechanism on the upcoming ETH 2.0 using Proof-of-Stake consensus algorithm. The other, popular with Defi applications, works alongside yield farming of tokens, allowing users to fix their cryptos on the platform while earning passive income in the staked tokens or project farmed tokens.
This article seeks to explore the second type of staking, which deals with yield farming without the option of having a validator or node position. However, both types of staking mechanisms seek to control inflation and reward users who participate in the program. Simultaneously, the former would require some high-level technical skills like having a Virtual Private Server (VPS) and owning Nodes; the latter does not need all of that for earning to occur.
SINOVATE HODL Coin Offering (HCO), is one of the simplest recent staking offerings currently available to the public. Sinovate employs a straightforward approach to simplify the onboarding process for Defi enabled staking opportunities for the average user, by introducing a 1-click setup directly accessible from the website.
HCO vs Defi
Sinovate is the first-ever project to activate this, the most simplistic type of staking. It has got all the properties of a typical staking program currently present in other Defi projects. The program became active after implementing the network upgrade on 21/09/2020 and will remain active for 75-days. The campaign will come to an end, around 04.02.2021. The estimated date is set on block time and based on the time it takes to get to Block 604,000.
During the campaign, the SIN coin, the native coin of the Sinovate blockchain, is locked to qualify for the reward. The reward will be paid via the Development Funds available for public trace, thereby cutting down on the SIN coin excess inflation, driving the price higher as an expected reaction.
Why is HCO a safer form of Defi Staking?
Right now, it’s quite understandable for a newbie in the Defi economy to feel reluctant in engaging with new Defi projects. This is due to many exit scams; rug pulls, mischievous actors, and actions like hacks to steal from unsuspecting members of the community bringing with it bad light to the Defi economy. HCO users are still very much in control of their coin, the development funds from which rewards will be paid, in public view, which pushes the height of transparency to a whole new level. (This is not typical of most Defi Yield Farms; As users are not entirely privy of how tokens are distributed since all of the decisions are carried out by project leads but for Sinovate HCO, the opposite is the reality).
SIN Governance Proposal and Rewards
The HCO program presents an excellent opportunity for cold staking, driven 100% by its community. Last year the Sinovate community had anonymously voted in favour of this campaign. Even the returns for participants at the end of its holding period, clearly distinguishes itself from the typical Defi staking programs, making it quite attractive.
HCO Offer: Hold and earn 15% annually when you hold a max of 75K SIN; 3% for 3 Months, 6% for 6 months.
Investing in the current Defi market could pose a great risk, especially with unknown project teams, rug pulls; however, investing with a known team with verifiable public resources and open profiles eliminates the risk of losing one’s funds. The upside exists when price tokens explode after the HCO event; getting rewarded with an increased price per token already looks like a double win.