Behodler now has an explanatory landing page and a new icon!
Behodler is the first of a series of ‘burn’ dapps in the WeiDai ecosystem intended to demonstrate the cryptoeconomic power of burning. Many of the DeFi dapps today are powered by credit markets but WeiDai stands apart among the thriftcoins for having its value driven by economic incentives to burn which increases the redeem rate. While interest rates have a natural upper limit, burning has no effective limiting factor as demonstrated by WeiDai’s redeem rate which has grown 32% since November 2019.
Previously, the only way to get to Behodler was to visit WeiDai dapp, connect your Metamask and click on the Swap Tokens. Now you can go straight to the landing page and learn about Behodler before connecting your wallet.
The explanatory slides will connect all the key concepts such as Scarcity, Pyrotokens, Sisyphus and the Scarcity Faucet contract so that you can figure out which route you’d like to take to benefit from Behodler. There are a number of ways to make Behodler work for you. They include:
- Exploiting price differences between Behodler and other DEXes such as Uniswap and Kyber Network.
- Accumulating Pyrotokens to benefit from the trading activity of others.
- Depositing liquidity to acquire the liquidity token, Scarcity, so that you can own a weighted basket of the total liquidity. Scarcity is also burnt which means this is a great token to just acquire and HODL.
- Claim Scarcity from the faucet contract so you can play Sisyphus and win more than 3 times what you put in.
Risk vs Reward: Behodler is for everyone
Options 1 and 4 in the previous list are for the risk loving amongst you. The upsides are huge but there is potential for loss. For instance, Sisyphus is a King of the Hill styled game so if a whale decides to play when you are the reigning Sisyphus, you stand to benefit from a quick buyout. Alternatively, if you buy too high, there might be no one to ‘relieve you of your burden’ before it drops significantly. Similarly exploiting price differences through arbitrage is a wonderful way to make free money while correcting price discrepancies but you face formidable fast moving opponents in the form of bots and Ethereum miners.
Options 2 and 3 are for the risk averse. Accumulating Pyrotokens by swapping in regular tokens such as WBTC and LOOM is a great way to benefit from future trades. Scarcity also benefits from future trades through burning and is implicitly weighted with a healthy mix of stablecoins and utility tokens but burning happens off a much larger base than Pyrotokens and so relative growth of the Scarcity value will likely be far lower than for Pyrotokens.