December 21, 2021 · 8 min read
Emerging Tokens Alert
The global cryptocurrency market has seen a drop in December. Nevertheless innovations in DeFi and Metaverse don’t seem to cease. This week, we sourced emerging tokens from Sushiswap. We saw an even distribution among metaverse/gaming/NFT projects and DeFi projects. The chart below compares the price movement of BTC and ETH and Novum’s handpicked emerging tokens. Lending protocol Abracadabra.money (SPELL) and BitDAO (BIT) outperformed BTC and ETH.
Last updated: 21st Dec 12pm GMT
Abracadabra.money is a lending protocol that allows users to borrow a USD pegged stablecoin MIM. Users can deposit interest bearing tokens such as yvWETH as collateral. The maximum collateral ratio(MCR) is 75% and the MCR is 90% for the users who deposited interest bearing tokens whose underlying assets are stablecoins. When the interest bearing tokens drop in value severely, a liquidation event will be triggered and this will incur a liquidation fee. The fee for stablecoin interest bearing tokens is set at 3% and for the rest, 12.5%. TVL in Abracadabra.money increased rapidly in the past few months. Its TVL currently stands at $5.26 billion.
The total supply of SPELL is 210 billion. 63% of them is allocated to LP incentives. The SPELL emissions schedule is updated weekly. The current emissions benchmark is 1,161,501,384 SPELL tokens. sSPELL tokens are staked SPELL tokens. sSPELL represents users’ share of the SPELL fee including interest and 10% of the liquidation fee. sSPELL is continuously compounding and it will result in an increase in the number of SPELL tokens. The approximate staking APR as of writing is 26% and 1 sSPELL = 1.1508 SPELL. There are more than 14.5k and 9.7k SPELL and sSPELL holders on Ethereum.
Abracadabra.money can be used on Ethereum, Fantom, Arbitrum, Avalanche, and BSC. Team Polygon recently proposed Abracadabra.money to be deployed on Polygon and the proposal has been passed.
The price of SPELL increased by more than 60% in the past 7 days. This pushed the RSI to 58 and RVI to 50. This is not a perfect moment to enter a buy position, yet it is not a bad time to enter if you want to earn protocol fees when the protocol use is growing fast.
Tokemak is a decentralized liquidity protocol backed by Framework Ventures. Tokemak lets users control where the liquidity flows. There is currently $1.14 billion locked in Tokemak. There are two main actors in the protocol : liquidity providers (LPs) and liquidity directors (LDs). LPs deposit assets (single asset staking) and the assets provided are later paired and deployed as liquidity. LPs earn variable APR rewards in TOKE. LDs are the participants who stake TOKE and make votes to direct certain assets as liquidity to a preferred exchange / protocol. LDs also earn variable APR rewards in TOKE for directing liquidity. The APRs for depositing and liquidity directing range between 45% - 60% as of writing. To understand the reward logic better, read this. Tokemak’s impermanent loss mitigation strategies are also outlined here. Supported assets include FXS, ALCX, SUSHI, OHM, VISR, FOX and SNX. Tokemak’s Tokemak deploys liquidity on ‘Cycles’. The cycles are currently set weekly. Assets deposited now will become active when the next cycle begins. TOKE rewards are also claimable weekly.
TOKE has a total supply of 100 million. 30% of them is allocated as rewards and will be emitted over 2 years. TOKE market cap stands at $195 million and the trading volume in the past 24 hours increased by 26%. The RSI is now at 31. DeFi participants who want to control where to direct liquidity with Tokemak, this is not a bad moment to buy the dip.
Immutable X (IMX)
Immutable X is a layer 2 Ethereum solution for NFTs using Starkware’s ZK rollup. Founded by James and Robbie Ferguson (both Forbes 30 under 30), Immutable X is powering leading blockchain gaming projects including Gods Unchained, RTFKT, Guild of Guardians and Illuvium. More than $20 million worth of Gods Unchained trading cards had been traded on Immutable X so far. Immutable X supports up to 9000 transactions per second and users pay zero gas. This has been made possible by having Ethereum key sign transactions batched into a compressed validity proof. Immutable X is also carbon neutral as the team will buy carbon credits to offset the carbon footprint of NFT minted or traded on Immutable X.
Immutable X went through a token split that increased the total supply by 100x from 20 million tokens to 2 billion tokens. 51.74% of the total 2 billion IMX tokens will be allocated as user rewards and developer grants. Users pay a 2% protocol fee and 20% of the fee goes to the IMX holder reward pool. IMX has a market cap of $812 million and there are more than 17k IMX holders. IMX’s RSI of 40 shows a good moment to enter a long position, and once the RVI (now at 41) moves over 50, it will potentially be a good investment opportunity given the current NFT and metaverse frenzy. Immutable X is trading below 54% from its all time high.
Illuvium is a fantasy RPG game built on Ethereum. Gamers go on a journey to complete quests to hunt creatures called Illuvials. Founded by Kieran and Aaron Warwick, brothers of Synthetix co-founder Kain Warwick, Illuvium is the first AAA game built on Ethereum. Illuvium integrated Immutable X to offer users zero gas fees for P2P trading with instant transactions. Although the game is not live yet, Illuvium has been able to attract a lot of attention in the blockchain play to earn game space. ILV is currently trading at $1,118 and its market cap stands at $718 million. Notable gaming guilds such as Yield Guild Games and Merit Circle added Illivium’s gaming NFTs to their inventories.
ILV has a low token supply of 10 million. 30% of the total supply is allocated to yield farming and is scheduled over a 3 years period. The open beta is expected to be released in Q1 2022 and the community is expecting a land sale ahead of the game release sometime in January 2022. Detailed information on the land sale can be found here.
There are more than 16k ILV holders as of writing and the number is continuously growing. The price of ILV hit its all time high 3 weeks ago and is now 40% below its ATH. The trading volume of ILV increased by 49% in the past 24 hours. The RVI is heading towards a positive volatility for traders and the RSI of 43 indicates a possible entry signal. Given the game is not live yet, ILV is considered a risky investment and users will need to monitor how many gamers the platform can attract for the project’s long term future.
BitDAO is a decentralized autonomous organization that aims to support open finance and decentralized economy. BitDAO holds more than $2.5 billion in treasury and billions in forecasted contributions. See treasury balance breakdown here. BIT holders can propose direct partnerships or swaps with projects. They can also propose to build specialized autonomous entities dedicated to gaming, scaling solutions, art guilds, liquidity mining, education and more. Edu DAO has been formed funded by BitDAO’s treasury. It is a multi-university DAO that will address blockchain research and education. Participating universities include world leading Harvard, MIT, Oxford, Tsinghua and more. BitDAO is supported by Peter Thiel, Pantera, Dragonfly, Bybit and more. Bybit has pledged to make recurring contributions of 2.5bps of futures trading volume to the BitDAO treasury.
BitDAO has a total supply of 10 billion BIT tokens and almost 15k addresses are holding BIT tokens on Ethereum. The trading volume of BIT increased by 25% in the past 24 hours and BIT logged an 8% price increase in the past 7 days. RSI of 41 and RVI of 60 implies that this could be a good moment to buy BIT if you want to share BitDAO’s mission.
The information provided on this website by Novum Insights is for informational purposes only, we make no warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. None of the information provided is intended nor should be relied upon for the purposes of investment.
The Emerging Tokens Alert and the Novum Blog are based on entirely estimated historical returns which provide no guarantee, promise or calculation of potential future returns or losses. In addition, all of the assets displayed and shown on the website are highly volatile and risky.