Decentralised Finance (DeFi) is a rapidly growing financial sector outpacing traditional finance built on blockchain technology. It promises to usher in a new age of finance built on transparency. With DeFi being such a nascent industry regulation is yet to catch up and it can be a dangerous place for an investor who has not done their research.
In this article, two projects will be presented that are designed to keep new investors safe whilst generating healthy capital returns.
Safemoon (SAFEMOON)
Safemoon a cryptocurrency launched on the Binance Smart Chain (BSC) in March 2021. Safemoon was designed to reward long term investment differentiating it from lots of coins currently available on the market. Some of these coins have become commonly known as ‘pump and dumps’- investors are tricked and parted from their cash, investing a sum of money which they believe will ‘moon’ only to lose everything.
Safemoon has a current market cap of $340 million and was designed for novice investors. It utilises three principles to safeguard its investors: Reflection, LP Acquisition, and Burn. These principles are made possible by Safemoon’s introduction of buy and sell taxes.
On every transaction- buy, sell, transfer- the participant acting is charged a 10% tax. First reflection, 5% of this tax is reflected or distributed back to all the other holders, this discourages sales of the coin leading to price stability. Second liquidity acquisition, 5% of this tax goes to refilling the liquidity pool and gives the coin a stable floor price. This also prevents larger dips when whales choose to offload their tokens later. Finally burn, a wallet owned by Safemoon receives reflections, and because this wallet is the largest it receives the most reflections, and these tokens are effectively removed from supply hence the term burn. Basic supply and demand economics, the less supply of something there is, the greater the price it can demand.
These features make Safemoon an ideal project for the new investor with the protocol being built to reward long term investors.
Gnox
Gnox is a cryptocurrency launching in Q2 of 2022 on the Binance Smart Chain (BSC). It is the first cryptocurrency project designed with a treasury that works specifically for its investors. Currently available for presale with participants able to purchase tokens and coins from across all chains.
Gnox will eradicate the barriers to entry found within the realm of DeFi and simplify the process of DeFi investment into a single point of contact for its users. Many DeFi investors cannot access the best returns offered by DeFi and Gnox offers yield farming as a service.
How Does Gnox do this?
Gnox is purpose-built for long term investors. The project implements buy and sell taxes on every transaction of GNOX and represent the next generation of reflection tokens. It goes beyond and above anything currently available on the market and this is the reason Gnox has generated so much hype within the crypto community.
First reflection, 1% of every transaction is distributed or reflected to holders of Gnox every 60 minutes. Second liquidity, 1% of every transaction is placed into a liquidity pool on PancakeSwap to establish a strong floor price. Third treasury, 6% of every transaction goes to the DeFi treasury. This treasury is then utilised in various DeFi protocols and all the proceeds are distributed amongst token holders. Finally marketing, 2% of every transaction goes to marketing efforts to ensure a steady flow of new investors leading to token price appreciation.
Gnox brings passive income and DeFi yields to the ordinary investor. And its token launch in Q2 of this year is one of the most highly anticipated.
