A Letter to the Wing DAO Community from Jun Li, Founder of Ontology
Wing, the first credit-based cross-chain DeFi platform built on the Ontology blockchain, has garnered a lot of attention since its launch in early September, laying the groundwork for the development of Ontology’s DeFi ecosystem and for the integration of Ontology’s decentralized identity framework, data, and credit evaluation systems.
Meanwhile, our team is delighted to have received feedback from the global Ontology community, including suggestions and recommendations for Wing’s future growth.
Now, as we celebrate one month since the launch of Wing, we can analyze the project’s performance so far and see what we can learn going forward. We hope this letter will also help keep community members updated on the milestones Wing has met to date, as well as what’s to come over the next few months.
Off To A Promising Start: High TVL and APY
Supported by Ontology’s blockchain infrastructure, Wing got off to a great start, offering lower transaction fees, faster transfer speed, and reduced costs overall. Wing’s TVL (total value locked) rose above 200 million USD on more than one occasion. At present, Wing’s TVL is around 150 million USD a very promising figure.
In addition to retaining a high TVL and providing higher returns to users in terms of APY (annual percentage yield), Wing also provides users with returns on borrowing and lending mainstream coins including ETH, USDT, DAI, and USDC, at some of the highest rates available on the DeFi market.
Currency — Wing Interest Rate
USDT — 11.97%
DAI — 11.96%
USDC — 11.97%
ETH — 11.97%
WBTC — 29.93%
TVL（Total Value Locked）/ — 134 Million USD
*Data Source: Borrow APYs of the above tokens are recorded from respective websites, as of 2:00 a.m. September 28, 2020 (UTC)
Further, Wing is among the very few DeFi lending projects that has completed cross-chain integration with Ethereum assets, which has the potential to provide high yields for Ethereum assets outside of the current Ethereum ecosystem.
WING, Returning to a Governance Token
A token’s price in the secondary market is often regarded as a major indicator of its value. The day WING went live on Binance, the token instantly hit an all-time high of $300, before gradually cooled to $20. Of course, this resulted in some doubting the token’s future.
It’s likely that the recent hype in the DeFi market contributed to a $300 peak so quickly. These prices have, indeed, put both the Wing and Ontology teams under some pressure.
Comparisons can be drawn between WING quickly reaching a high of $300 and COMP’s experience of reaching an almost instantaneous high of $2,000 upon its release. As newly-launched projects are yet to reach proper transaction depths, an all-time high upon release is not a good indicator of its long-term price
In the long run, the market price of a token should be based on its application value and users enthusiasm around growth potential. In relation to WING as a governance token, the governance power and potential returns are substantiated by the ever-increasing TVL (Total Value Locked) on the Wing platform, as well as the transaction fees derived from interest on borrowing, lending and insuring. The Wing team believes that the value of the WING token will be more visible to community members when WING returns to its original position as a governance token.
Improving The Governance Model and Enriching Value
The Wing team greatly values feedback from the Wing DAO community..
In terms of next steps, Wing’s core development team will increase efforts in protocol implementation, product upgrades and improvements to user experience. In addition to further optimizing the Flash Pool UI, the Wing dApp will be released on ONTO, Ontology’s data wallet, at the end of September. In mid-October, a month after Wing’s official dApp launch, Wing.Finance will go through a structural upgrade that will facilitate the community governance framework and expand WING’s value in more dimensions.
As for product upgrades, in October, Wing’s core development team will submit a proposal to the Wing DAO community for a second lending pool incorporating credit, prompting Wing to venture into credit-based lending.
Empowering Wing with a Wing DAO-led Governance Strategy
As we have learned from Ontology’s positive growth history, a community-driven strategy is the cornerstone to a sustainable development of blockchain-based products. For this reason, the Wing community will remain our primary commitment in the next phase, and beyond.
Upon Wing’s launch, a series of mining activities were initiated by the https://gov.wing.finance/ Wing team to ensure the steady growth of the ecosystem. Over the past 15 days, three proposals in the Wing DAO community were initiated with the aim of empowering Wing’s growth with a community governance approach of raising public proposals and seeking a vote from the entire community for execution.
As the governance policies formed by the three Wing DAO community proposals came to fruition, it has been great to see that the community has grown accustomed to taking governance power into their own hands. As the governance model has made a positive impact, the Wing project will prioritize a community-driven strategy in the next stage of Wing’s development. Meanwhile, we are more than happy to see community forums like https://gov.wing.fiannce/,where members can express their opinions, and the community can gather together to brainstorm ideas. Every bit of feedback from the community is of significance to Wing’s growth.
A recent proposal suggested transaction fees from borrowing on WING should be bought back and burnt. The Wing team is currently looking into whether the proposal is technically feasible. If this is the case, the Wing team will initiate a fourth proposal for the community to make a final decision.
Following the Wing DAO-driven strategy, Wing will continue to adhere to an open and transparent governance structure, taking into account the community’s feedback to further improve the governance rules, simplify the process for member governance participation, perfect the governance protocol, and enable the protocol to be applied to more scenarios. We believe that as we progress, WING will be regarded as an increasingly valuable governance token.
Wing’s Strategic Significance to the Ontology Ecosystem
The success of DeFi projects requires ongoing commitment. Compound, a DeFi project released two years ago, has spent two thirds of its life in stealth mode until the unprecedented yield farming spree which took place inJune 2020. Uniswap provides us with another example of long-term users working together and remaining committed, ultimately cumulating in bountiful returns.
As the first credit-based cross-chain DeFi platform, Wing also serves as the first key project in Ontology’s DeFi ecosystem. Ontology’s decentralized identity framework (ONT ID) and decentralized data protocol (DDXF) can support users in managing their own identities and data verification, while also integrating with smart contracts to enable automatic verification of credit data and credit evaluation. A technical infrastructure such as this combined with OScore, Ontology’s credit evaluation system, makes it intrinsically possible for Wing to integrate credit data into its products.
In the next stage, Wing can be be fine-tuned to work as a crucial component of the Ontology DeFi ecosystem. We expect that more premium projects derived from Wing will emerge and enrich the ecosystem, in turn maximizing the project’s significance and value in the DeFi sector.
While we continuously improve our underlying infrastructure, Ontology will prioritize the development of our communities around the world. We’d like to extend our thanks to every community member who presented us with suggestions for Wing, and those who participated in Wing DAO governance in the last month.
Ontology is committed to continuing our efforts to optimize the governance framework, product design, and user experience of Wing. We also plan to explore more innovative DeFi products in a bid to build a bridge between DeFi and traditional finance.