Plutus Defi: The Privacy Focused Fullstack Defi Platform (Microcap Gem)
Defi has been all the buzz for the past couple of months. More than $1 Billion has already been locked up in different Defi projects. It is expected to be the one use case to truly move the industry to the next level. Every week, new defi projects are coming out of stealth while those already in the markets have been setting new highs.
Market caps for top Defi projects have almost reached the $1 Billion mark. Compound peaked at around $800 million briefly after it was available for trading while Maker has hit its ATH of $700 million again. Even new terms have come up such as “yield farming” where investors can get up to 100% APR on certain assets. While these are the giants, smaller projects have done even better when it comes to ROE with some doing 2x, 5x, and 10x in the past few weeks.
What’s the next Defi gem?
Beyond all the chatter and noise, a new project has been detected on the radar. This project aims to build not just one Defi product but aims to build a full suite of different Defi solutions. It wants to connect other Defi platforms and do so in a secure and private way. They are the first to introduce the idea of Defi as a service. And the name of the project is Plutus Defi — with the token symbol PLUTUS. It takes its name from Plutus, the greek God of wealth. Aptly named when talking about a project that puts your money to work in a secure and private way. And unlike most projects raising millions of dollars, this microcap gem is only raising $1m with a fully diluted market cap of $2m.
What is Plutus Defi?
Plutus Defi is an aggregator platform that connects with other money market protocols. This way, users can command the best rates in one simple and easy to use interface. There’s no need to open multiple accounts and continuously switch tabs just to find the best rates. While there are already some aggregators out there in the market, what sets Plutus Defi apart is its privacy first approach and the anonymity they provide. They will never require KYC. Using Plutus Defi will also save you money on network and transactions fees over the long run.
They partnered with Aztec Protocol which is backed by Consensys and Coinbase to provide bank level privacy. They also use it in conjunction with their own ETH mixer called ETH Bl3nd3r (Blender) to provide another level of anonymity when transacting. Using their own mixers reduces the cost compared to using third party mixers in conjunction with other lending platforms.
Importance of Privacy
When centralized exchanges started to operate, there was no need for any KYC. But because of regulatory scrutiny, it has became mandatory in almost all exchanges today. When the exchange has your information, they can be requested by government agencies or get hacked by hackers.
Sooner or later, these regulators will come after big Defi projects and eventually require them to KYC their users as well. This is the reason why big Defi companies are raising tons of money partly to be ready for this eventuality.
Protocol Layer Partners
Plutus plans to connect to several Defi projects from across different industries. This includes Compound for lending and borrowing, ZRX for DEX, dYdX for derivatives, Maker for stable coins, and Nexus Mutual for insurance. The integration with Nexus Mutual is one the highlights since they are the partner for most crypto lending platforms. Users can directly get a quote on the platform to insure the assets they are lending out. The vision is for Plutus Defi to become the one stop defi shop for users.
Base Layer Partners
Plutus Defi is not only limited to the Ethereum network. It will be available to settle transactions across different blockchain platforms later on such as Ethereum, Cardano, Binance and even Libra.
DeFi Debit Cards
Plutus Defi plans to launch their own debit cards powered via providers in Eastern Europe. With this, you can use the interests you earn and spend them directly on real world merchants.
DeFi lending into Africa via Mobile Credits — PlutusDeFi to M-Pesa (Tanzania)
Plutus Defi also plans to offer their services to the African continent by integrating with M-Pesa. M-Pesa is a mobile phone based money transfer service with millions of users in Africa. M-Pesa users can finally access DeFi services such as Curve, Compound and dYdX all through their phones.
Plutus on Mobile
Plutus is building their mobile app which will be the first DeFi multi-tool native app integrating the latest privacy technologies such as VPN, ETH mixing, DeFi lending/borrow functions and 1-tap aggregated dex orders, over the next year.
- DeFi Lending Balance Tracking
- Manage multiple wallets, assets & protocols
- Instant Buy/Sell/Swap via aggregated DEX orders
- APR interest display and quick switching between protocols
- Multi-factor authentication
- Randomized Pin Entry Pad
- One-Tap Ethereum Mixing with Tornado Cash Api + Plutus ETH Bl3nd3r
- Mobile Money Credit integration/quick sending via QR code (MENA Region)
- Support for VM-Mobile Instances via Multi-Memu Emulator on Desktop for rapid deployment and shutdown.
The primary use of the PLUTUS token for network fees. A certain percentage will continuously be burned making it a deflationary model which is great for pushing price upwards similar to how BNB is burned quarterly. Token holders also have a say in the direction of the platform when it comes to upgrades and fixes since Plutus Defi is a self-amending network. And lastly, the tokens are used for staking which rewards stakers based on the amount of tokens they hold.
Plutus Defi will be raising $1,000,000 in exchange for 50% of the supply (60,000,000 PLUTUS). With a total supply of 120,000,000 PLUTUS tokens, that puts the fully diluted cap at $2,000,000.
Seed round contributors bought the token at $0.01 and have been waiting for over a year already. However, these tokens won’t be unlocked fully. Plutus Defi is using a bridge fee that starts at 55% and decreases to below 10% at the end of 3 quarters. This model rewards long term commitment as opposed to short term price fluctuations. This means that if they want to unlock their tokens fully, they will have to pay a liquidation fee. As a plus, tokens liquidated crossing the bridge will be burned and permanently removed from circulation thus decreasing over all supply. On the other hand, private sale investors will not have to pay a bridge fee but contributed at a higher price price of $0.05.
The price difference may scare some but the main difference between then and now is that the product is already in the testing phase vs when seed round contributors. Defi was also still very nascent compared to now where it is the talk of the town.
Why Plutus Defi could give the best R/R for 2020
There’s no argument Defi is extremely hyping up right now. Defi tokens have been breaching and setting new all time highs such as $RUNE, $CEL, $SNX and $COMP. Given Plutus’ micro cap ($1m on raised, $2m full diluted cap) and large exposure, a 3–5x right out of the gate seems very feasible. Even if it just reaches 25% cap of major projects, that translates to a 50x or 100x return. Plutus DeFi has big aims. If it is successful, as an aggregator, it builds on top of the success of other protocols. Investing in Plutus Defi is like investing in the success of the DeFi ecosystem.
The Plutus Defi team also has a lot of features planned. They have also been religious in giving monthly updates to investors and is published on their Medium blog. The latest one is for June — PlutusDefi June 2020 Update — Plutus DeFi reduces Fundraising Market Cap