April 20, 2021 · 4 min read
Momentum Pairs Insights - FINANCE.VOTE
In the Momentum Pairs Insights series, we are interviewing project founders that have been featured in our Momentum Pairs, and which are among the most exciting projects of the best performing pairs selected by the Novum Insights’ analyst team.
This week, Novum Insights CEO Toby Lewis interviewed Nick Almond, CEO at finance.vote. Finance.vote is a decentralized organization dedicated to building DApps, specializing in quadratic voting technology and price discovery in the DeFi space. In this blog post, we look at various dApps within the finance.vote ecosystem - Markets.vote, Yield.vote and Influence.vote.
“We’ve both been in this space since 2017 and at that time there were barely any working projects in crypto, they were all theoretical and “buy into this token sale” and you had no idea.” - Toby Lewis
As new tokens and projects flood into the DeFi space, it is more difficult than ever to accurately spot quality projects worth our time and money. Prediction markets lay out a possible solution to this by offering collective intelligence when speculating on a future event.
On Markets.vote, users are given a list of tokens and they vote on them using quadratic voting, based on their belief of their future performance. This allows users to create collective intelligence in these fast paced DeFi markets. Users that make accurate predictions win a share of the reward pool based on the number of votes and gain more voting power for the next round.
To participate in voting tournaments, users need to mint an identity. Finance.vote issues a decentralized identity token (DIT) as a form of an NFT. The identity is linked to users’ voting histories and performance and over time, good performers will be given more weight on their vote, which will allow a more accurate view of the potential of a coin.
Yield.vote is a liquidity incentive management platform that allows projects on the market to feed tokens to their users for providing liquidity or staking their tokens. Users can stake their LP tokens and earn a yield on the native assets of those platforms.
“When the DeFi boom happened, it was when Compound started giving away free money to liquidity providers. And essentially, I've been saying this for a while the DeFi space is built on quantitative easing. And so then they had a big huge reserve of assets that they then started issuing to participants in the network. This is kind of the principle of token economics is one of the fundamentals, this idea of mechanism design, someone's behaving in a certain way you want and the system pays them for it.” - Nick Almond
On Yield.vote, liquidity providers obtain “property” in the protocol and earn a “resident income” by paying a Harberger Tax. LPs burn a small fraction of their LP tokens as a tax to earn the staking slot for $FVT (governance token of finance.vote) rewards. Users willing to pay a higher tax can overtake the occupied staking slot.
Here is an example of how Yield.vote works.
Source: finance.vote Medium
Yield.vote is launching Basic Pool with FVT as a staking asset on April 9th. The Basic Pool contract opens and reaches maturity at specified times. Unlike most variable APYs offered by other protocols, in Basic Pool, the quote you see is the yield you receive on maturity. There is also no lock up period, so users can leave at any time with their accrued yield. By staking FVT in Basic Pool, FVT is taken out of circulation. This allows FVT users to manage the monetary policy within the fiance.vote network.
Influence.vote, expected to launch this April, is a snapshot voting mechanism with native quadratic voting functionality. It will allow FVT holders to have a token-weighted influence on decentralized content curation. Influence.vote can be used to vote on monetary policy parameters of Yield.vote, Markets.vote, on which tokens enter the token list of Markets.vote, and more. It is a space for crowd curated user dialogue designed to foster good decision making.
Be it forecasting who will win the F1 championship this year, be it speculating on a coin unheard of, prediction markets are useful tools for betting on future outcomes. Marrying prediction markets with DeFi, speculators can capitalize on their beliefs and knowledgeable individuals are incentivized to share their insights with the crowd for a more accurate picture of the crypto industry and more.
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