ICO was the hottest topic in 2017, public chains were in 2018, and IEO was in 2019. There is no doubt that the hottest topic of this year is DeFi. The current total value locked in Ethereum DeFi has reached USD 4.27 billion, including 4.3 million ETH and 208,000 BTC. Tokens listed on the most compliant US cryptocurrency exchange Coinbase this year are practically all DeFi ones.
For DeFi tokens, x10 rise is quite common and x100 rise is also usual. Even those only related to DeFi also rise. The popularity of DeFi is evident. As a leading DeFi project in China, WGRT will certainly have a good performance. Most of the current DeFi projects build on Ethereum, which is why Ethereum has risen the most among the mainstream cryptocurrencies recently. Crypto investors tend to follow popular projects to maximize their investment returns. Since DeFi is this year’s biggest hype, proper allocation of funds is necessary.
First International Rise, Then Explosion in China
There is a rule in the crypto world. Most popularity waves start outside of China. However, they start to break out in China and reach the peak. Ethereum introduced ICO, but AntShares, Quantum, and other x1,000 projects pushed ICO to its peak and it was in 2018, the year of public chains when WaykiChain started and rose more than 10-fold. We can see that the first DeFi wave is Ethereum, but the second one must have a Chinese project behind it. At present, most Chinese DeFi tokens are undervalued. It is particularly true for WGRT, a leading Chinese DeFi token built by WaykiChain. It is seriously underestimated and more worthy of investment. The reasons for investment are:
WaykiChain Team Is Good at Marketing
WaykiChain team is widely known in the crypto world. It has gained opposing reviews. The bulls say that the WaykiChain team has been doing its work. In fact, it is true. WaykiChain has WUSD, the world’s first stablecoin issued on the underlying public chain, launched a DEX, aims for new striking achievements through the strategic cooperation with the reputable Hong Kong securities dealer W Broker, has the highest TPS in the world, has a comprehensive DeFi layout and much more to be proud of. In the second half of 2019, WaykiChain expanded its international presence to prepare for the breakout. Dozens of press conferences and meetups in more than 20 countries and regions and global ambassadors from 33 countries who opened their own WaykiChain communities in 18 countries have marked the globalization of WaykiChain and showed good results.
However, WaykiChain bears say that the team ripped its investors. WICC has dropped from an all-time high of over USD 2 to a few cents in 2018. It can be said that WaykiChain set up many people in the crypto world. Those who lost money swear at the team and those who made money swear at the team, too. Both sides selectively ignore the efforts and achievements of WaykiChain. Nonetheless, one cannot doubt the team’s marketing capabilities.
Why WGRT Will Define the Next 6 Months in DeFi?
In 2018, WaykiChain did not have many technical advantages, let alone many commercial applications. It caught the wave of World Cup champion guessing and marketing became highly deterministic and expected, similar to Bitcoin halving every four years. The crypto world tends to hype over expectations. A high-certainty expectation can attract a lot of people and funds and push the price, too. This was quite the case with popular coins at the start of the year. WaykiChain’s helicopter giveaway on Huobi and gold bar giveaway to 1,000 conference participants in Shenzhen gave maximum publicity to the WaykiChain guessing competition and attracted many crypto investors. At that time, the number of coin holders exceeded 100,000. This is probably a classic crypto marketing case.
Besides that, WaykiChain founder Wayki Sun (“Fencing Master”) was the biggest supporter of Dogecoin from 2014 to 2017. Dogecoin’s success started with a joke. It had no innovations, its founder left it, but before 2017, it was second to Bitcoin in popularity and recognition.
WaykiChain CEO Gordon Gao once said: “WaykiChain will be all in DeFi for at least two years”. WGRT is currently the main DeFi project of WaykiChain. In terms of technical innovation, team strength, and implementation, the company is in a better place than in 2018. The team’s marketing abilities are easier to play out and more classic marketing cases are possible. China’s DeFi leader WGRT will be more popular and marketing multiplied by implementation will push it to the peak.
WGRT, the First Chinese DeFi Project
The concept of DeFi first appeared in August 2018 outside of China. However, the public got to know it only in the second half of 2019. Due to lending, this year, DeFi has made it to the top of the crypto world. What you may not know is that WaykiChain team launched the first Chinese DeFi project WGRT as early as in April 2019. It wasn’t called DeFi at the time, but it was an implemented case. Only when this year’s DeFi boom started and Chinese public chains followed it, WGRT came into the light and people got to know that there had been public chains exploring DeFi in China for a long time. Being the first does not mean that WGRT will become the DeFi leader in China, but this gives WGRT the first-mover advantage and will make more people remember it. Besides, the advanced layout also means certain accumulation of technologies and implementation experience — imitators are not in the same place yet.
Value of WGRT
The total supply of WGRT is 21 billion and the current circulating supply is only 10%, about 2.1 billion. It is a deflationary token. WGRT is similar to platform tokens of cryptocurrency exchanges. Currently, the value of platform tokens mainly embodies in buyback and burn of profits. In case of WGRT, interest and penalties support the value. The interest generated by collateralized lending and penalties generated by liquidating the abnormal CDP will be used to buy back and burn the WGRT in circulation. With decreasing circulation, the expectations of price rise will be higher.
Platform token holders can join voting on new listings. Once the voted token is listed, the holders who supported it can get a certain potential profit. They can also lend tokens to project teams for voting for a certain fee. On the platform, WGRT holders have the governance right and the right to submit proposals and vote. Profit will drive the holders to participate in governance, finetune the system through voting, and maximize their own profit. All these stimulate to hold more WGRT. For example, if I want to borrow money, I hope for a lower interest rate and a lower collateral ratio. Then I will vote for my choice. Of course, I can also lend the voting right to other people for profit.
The requirement to start a proposal is 210,000 WGRT. If the proposal fails, 10% of WGRT will be deducted to the reward pool. If the proposal passes, it gets a bonus from the voting reward pool. Thus, more people will be willing to participate in platform governance, more tokens will be locked in the reward pool, and holders will be willing to hold more tokens.
Top-tier Technologies and Developing Application Scenarios
WaykiChain’s TPS ranks global first, even higher than that of the famous EOS. But high TPS does not necessarily mean a project is great. It is a plus and a point of speculation, but it is most useful during big market fluctuations. Currently, DeFi is mostly decentralized lending on Ethereum network. When drops like on March 12, 2020, happen, pledgers cannot increase deposits due to Ethereum network congestion and this causes margin call and forced liquidation. On March 12, numerous margin calls happened on MakerDAO and similar lending platforms. This is exactly when the high TPS advantage plays out. It can perfectly prevent such things from happening.
Reliable implementation starts from users, not from projects. An implemented application can be deemed truly valuable only after it finds the users’ “G-spot” (that is, meets their needs). The crypto world is mainly investment-oriented and the demand for funds is quite big. For example, a user feels that the value of WICC it holds is going through depression and finds a better investment. Then, the user can get the WUSD stablecoin to invest in other projects by pledging WICC. Right now, WUSD can be invested in innovative Hong Kong stocks via W Broker. In the future, W Broker may add various global assets, such as stocks, gold, indices, commodity futures, and contract options.
Currently, WaykiChain total collateral reaches 42 million tokens, about USD 9.06 million. It has no rivals among Chinese DeFi projects. Saying that WGRT is the Chinese DeFi leader is just a statement of a fact. WaykiChain’s locked value is №6 in Ethereum DeFi lending. Another Ethereum DeFi project Kyber has about USD 8.7 million of locked value, which is slightly lower than that of WaykiChain. The current circulating value of Kyber’s governance token KNC is about USD 270 million and its market value ranks №42 on CoinMarketCap. The current circulating value of WaykiChain’s governance token WGRT is about USD 23.5 million, less than 10% of KNC’s market value. This shows that China’s leading DeFi project WGRT hasn’t explored its value yet.
With the launch of mainnet 3.0, WaykiChain realized the cross-chain technology and ETH and BTC pledging for WUSD. Users are no longer limited to the WaykiChain community, communities of the mainstream coins are embraced. There is no doubt that WGRT will lead the second wave of DeFi.