On Layer-1 Defi
Defi is raising. Billions of dollars worths assets have been deposited in various of Defi products such as Compound, Aave, Uniswap, and Curve. People are keen on making extra incomes from interests, liquidity fees, and staking rewards.
All of these have a prerequisite that users have to put their assets in the smart contracts.
While most of these Defi smart contracts have been carefully audited, people pay less attention to the potential system risks. Meanwhile, even those audited contracts can still be hacked. Opyn and Yam are two recent examples.
Is there a way for users to make a profit directly on layer-1 without interacting with complicated smart contracts? Here is where the Most protocol comes into play.
The Most is targeting to be the first of its kind of layer-1 Defi protocol. Whenever there are demand and supply in the market, the MOST tokens will be used and circulated. The MOST holders can either receive interests by holding MOST when the price is low or sell MOST for profit when it is high. What is more, the MOST protocol doesn’t limit users to earn extra transaction fees by joining other Defi liquidity pools, such as Uniswap MOST/USDC. Once the MOST is publicly recognized as an algorithmic-stable token, it is almost guaranteed to be profitable given the built-in incentives within the Most protocol, which will keep the price relatively stable compared to other non-stable token assets.
We live in a world where we are used to the business model that we have to deposit money into some sorts of financial organizations for financial returns, giving away the ownership of our wealth seems to be the pre assumption by default. Banks, funds, and other commercial organizations make lots of money by serving as an agent. In comparison, the Most protocol removes all the middlemen involved in minting and distributing MOST. There is no central party in charge of managing these tokens. Who shall the value of the Most protocol, as a decentralized banking system, belong to? The answer is to the MOST holders through layer-1 directly.
From this perspective, holding MOST is like carrying a piece of ownership of a bank. As the MOST grows bigger and gets adopted wider, all holders who help govern and strengthen the protocol should benefit from the MOST’s valuation growth on a pro-rata basis. The Most protocol builds an elegant mechanism to incentivize MOST holders to sell tokens when highly demanded, and hold MOST tokens when over-circulated. It is this mechanism that makes layer-1 Defi possible.
