The nascent DeFi (decentralized finance) industry has undergone several noticeable changes throughout its inception – along with the savvy investors. However, the vast majority of investors couldn’t adjust to the continuous fluctuations in the real-time data. When combined with most DeFi projects’ complexities in space, a number of speculators lost money. At the same time, a select group of investors was able to capitalize on profitable opportunities.
The ever-changing landscape of the DeFi industry forces market participants to immerse themselves in the intricacies of DeFi trends, and they are as follows:
Stage 1: The Liquidity-Yield Paradigm was the genesis of DeFi. It was as simple as finding the best yielding platform to participate and earn rewards.
Stage 2: The above trend lead by the masses resulted in Farmer Saturation. The Farmer Saturation occurred as more users participating in a high-yield pool resulted in the yields to drop for all parties involved. Savvy investors who adjusted to the trend hopped from one pool to the next, searching for the next best yielding protocols – whereas miners made millions in mining fees, but the average investor bit the bullet and paid the price.
Stage 3: The Impermanent Loss Enigma stemmed from the Farmer Saturation since some DeFi participants searched for an alternative to the popular yield-farming protocols of the past. Providing liquidity was now seen as one of the most profitable ways to earn yields. Automated Market Maker (AMM) pools’ price fluctuations in the underlying currency lead to a loss for Liquidity Providers (LPs). Providing your tokens on a DEX (decentralized exchange) like Uniswap was working flawlessly – until Impermanent Loss (IL) intervened its ugly head.
Stage 4: The Impermanent Loss Enigma then led to the Governance Tokens Conjecture. To give LPs more incentive to provide liquidity at the risk of IL, the latest trend quickly promoted delegating token-holders governance and voting rights. Yet another layer of complexity was added for the average investor when evaluating a potential investment.
Stage 5: The Governance Tokens Conjecture leads us to the Chaotic Excitation, which equates to savvy investors having developed their yield-farming strategies – while the average investors are taking the brunt of the losses due to exorbitant gas fees and the sudden drop in APY.
Stage 6: Finally, the Chaotic Excitation led to the Future Formulation. The Future Formulation is the re-emergence in providing liquidity to earn lucrative returns as the backbone of finance – and not just DeFi.
DeFi has seen an incredible rally in the past 12 months. According to Defi Pulse, the TVL (Total Value Locked) in decentralized protocols aggregated from $805 million to $22.7 billion.
While DeFi trends are continually being accelerated, safe, simple, and decentralized DeFi platforms are most required to drive the masses.
Introducing Nord Finance
Nord Finance is an advanced DeFi ecosystem designed to simplify DeFi investing and deliver the highest possible risk-adjusted returns on investments through multi-chain yield-farming.
- Bringing critical features of traditional finance to the DeFi ecosystem as an advanced stable-coin-based yield-farming protocol is Nord’s primary objective.
- The Nord smart contract, with interoperability features, delivers the highest APY by dynamically re-routing investments to high yield liquidity pools.
- Nord’s ‘Connect & Stake’ process provides an easy-to-access gateway to the complex and dynamic world of De-Fi-based Yield-Farming. The efficient transaction management system of our protocol aims to deliver near-zero transaction fees and a seamless user experience.
Nord Finance Highlights
Nord Finance offers several significant advantages, such as:
- Stablecoin-based yield-farming — USDT, DAI, USDC, BUSD, among others
- No Upfront Gas Fees — No Ethereum, exchanges, or multiple transactions
- Highest risk-adjusted returns — Your personal fund manager
- Efficient time management — No hassle, No research leveling the playing field — Savvy investor’s yield-farming strategies accessible to all
- Leveling the playing field — Savvy investor’s yield-farming strategies accessible to all
DeFi Application
Nord Finance is building the most efficient and user-friendly avatar of DeFi investing to maximize portfolio returns across multiple DeFi ecosystems that include:
- Highest Returns: Automated portfolio rebalancing across liquidity pools with the highest & risk-adjusted APY.
- Zero-Cost Transactions: No upfront network fee for deposits; the smart contract absorbs the gas fee adjusted in the final APY.
- Interoperability: Interoperability across multiple chains seeking the best possible yields beyond the Ethereum Network.
- No Impermanent Loss: Stable-coin based system mitigates the risk of base currency fluctuations.
- Just Connect & Stake: Enjoy a hassle-free experience with an intuitive UI offering One-Click Access to DeFi Yield-Farming.
- Ease of use: Non-custodial audited smart contract with instant withdrawals at your fingertips.
Products
Nord Savings
Nord Savings delivers the highest possible risk-adjusted returns for stable coin investments through multi-chain yield-farming and provides an easy-to-access gateway to the complex and dynamic world of DeFi-based Yield-Farming. To deliver the highest risk-adjusted APYs and assess protocol risk, Nord Savings leverages the DeFi Score framework. Nord has built its own proprietary algorithm on the DeFi Score framework to assess risk.
Nord Savings is the first product scheduled to launch in 2021, as indicated on the Roadmap.
The Cumbersome Steps involved in Traditional Yield-Farming:
- The participant needs to have enough Ethereum in their wallet for gas fees. In case the participant doesn’t have enough $ETH, they need to send USDT to an exchange, buy $ETH, and send it back to their wallet.
- The participant now needs to identify the ‘right’ pool for their investments across multiple lending platforms.
- To identify the ‘right’ pool, the participant needs to shortlist pools, assess pools’ APY trends, and finalize quickly before the APY drops due to Farmer Saturation.
- Additionally, the participant needs to perform in-depth research about the pool to ensure that the pool is genuine and not a rug-pull — critical to ensuring favorable risk vs. reward opportunities. As research is a time-consuming activity, most investors end up entering a pool late and earn lower APYs compared to the savvy investors who get the first-mover advantage.
- Assuming the participant can satisfactorily complete steps 3 & 4, they can now invest in a pool of their choice. As APYs are dynamic, the participant needs to continually track their portfolio and re-start the process if APYs drop below his expectations.
With Nord Savings, there are no cumbersome steps to take to participate and earn yield:
- No Upfront Gas Fees: The participant doesn’t need to hold any Ethereum in their wallet. Nord Finance’s Smart Contract is designed to absorb the upfront network fees and adjust them in the final APY.
- High Returns: Nord Finance automatically identifies the best yield-farming strategies to deliver the highest returns to the investors.
- Easy to Track: Nord Finance’s detailed dashboard offers real-time portfolio updates.
Nord Advisory
Nord Advisory understands the user profile and its investment requirements based on their financial goals. The robo-advisory is designed to offer customized investment solutions. Our technology chalks out customized investment strategies for the users and deploys their stable coins using our proprietary algorithm in a goal-oriented diversified portfolio. The data-driven proprietary algorithms help users build a smarter portfolio to achieve their financial objectives.
Nord Loans
Nord Loans allows users to leverage their crypto investments to avail loans to meet any unforeseen expenses. By pledging their crypto investments on Nord’s smart contract, users can avail of an instant over-collateralized loan to meet their financial needs. Nord Loans is a personal overdraft facility where the users pay interest only when they withdraw the amount. Nord Loans is a hassle-free way to get funds without liquidating your assets.
Nord Swap
Nord Finance is designed to be Ethereum-compatible, blockchain agnostic, and a multi-network universal protocol to enable the exchange and interaction of digital assets. The protocol offers a multi-chain asset swaps facility to its users.
The Nord Token
$NORD is the native token that powers the Nord Finance ecosystem, and its utility includes governance and changing yield-farming strategies across different DeFi platforms.
$NORD Utilities include but are not limited to:
- Liquidity Mining
- Staking
- Incentivizing Platform Participation
- Fund Management
- Fee Reward Distribution
- Community Governance
Users can choose to mine $NORD tokens via the liquidity mining program or purchase the tokens directly via exchanges such as Uniswap, Paraswap, GateIO, Hoo, & Bilaxy.
$NORD Token Emission Details:
- The total supply of Nord Finance is capped at 10,000,000 $NORD.
- 510,000 $NORD is allocated to seed round investors at 0.45$.
- 1,590,000 $NORD are allocated to private sale investors at 0.63$.
- Early-stage seed round and strategic private sale investors tokens are vested for 12 months with 15% token being unlocked on listing and rest with daily distribution from day 31 for the next 11 months.
- 100,000 $NORD are allocated to the public sale (IDO) at 0.9$ and are 100% unlocked on the day of listing.
- 3,500,000 $NORD is allocated for the community in the form of a reward pool and ecosystem.
- A total reward pool of 1,000,000 $NORD will be distributed under incentive programs, including yield farming, staking, and liquidity pools over 12 months.
- Under Nord Finance Ecosystem, we have allocated 2,500,000 $NORD to be distributed for future community-based platform reward programs for the next 24 months.
- 300,000 $NORD allocated for liquidity provision on the listing will only be used for exchange market pools.
- 1,500,000 $NORD is allocated for a foundation with 24 months vesting for future strategic funding needs and product development.
- 2,000,000 $NORD tokens are allocated to founders & the team with 18 months vesting. 0% token will be unlocked until the 6th month. No bulk % token will be unlocked even after 6 months; we have daily distribution for the next 12 months.
- 500,000 $NORD are allocated to advisors with 18 months vesting. 0% token will be unlocked until the 6th month. No bulk % token will be unlocked even after 6 months; we have daily distribution for the next 12 months.
- Initial circulation supply of $NORD token will be 714,761, i.e., 7.147% of total supply, which is 314,761 from early-stage investors, 100,000 from public sale. Furthermore, 300,000 tokens are allocated for liquidity provision of exchanges; these tokens will be available on exchanges for the sole purpose of the liquidity pool, which means they are locked.
- Effective Initial Circulation supply is 414,761 $NORD, i.e., 4.147%.
More information can be found here.
Roadmap
Conclusion
With over $100 million stolen from DeFi projects in 2020, the current trajectory of TVL in DeFi protocols and all the potential users of DeFi protocols currently being attracted to the crypto-sphere shows a distinct need for an easy-to-use DeFi protocol that offers several products that are simple yet powerful tools to take control of their financial independence.
The Nord Savings V1 Launch is under the security audit process with the leading Blockchain Security and Audit firm Zokyo. By amalgamating synergies with Zokyo, Nord Finance aims to reinforce the importance of security and protection in a dynamic decentralized landscape and significantly reduce the risks associated with many DeFi protocols today.
By closely evaluating the history of other protocols and the recent trends of staking rewards models, Nord Finance seems to have figured out how to maximize its users’ yield in a safe, simple, and sustainable manner.
Important Links:
Social Media:
Telegram: https://t.me/NordFinance
Twitter: https://twitter.com/Nord_Finance
Don Cheng
The Daily Chain
*Disclaimer – NORD is our Media Partner, and this content is made possible with their support. The above article does not represent financial, investment, or trading advice, and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.
