- INVESTMENT IDEAS
Five Upcoming Avalanche Initial DEX Offerings
- Oh! Finance is a DeFi platform that offers optimised yields for stablecoin products.
- Rise Online is an upcoming MMORPG with an NFT marketplace for game collectibles.
- Hurricane Swap is an Avalanche-based decentralised exchange.
- Kalao is an NFT marketplace with a VR vertical.
- Colony is a community-driven accelerator for the Avalanche ecosystem.
With the announcement of the Avalanche Rush $180 million DeFi Incentive Program, 5 projects prepare to go live on Avalaunch—the Token Pool + Auction Protocol for Avalanche.
Oh! Finance is a DeFi platform that offers optimized yield-generating stablecoin products. Upon launch, yields offered on stablecoins will be 10-21% APY with an added +10-30% yield in token rewards. The yields are extremely competitive with the rates offered by their competitors. Currently, Harvest Finance offers the highest APY on stablecoins at 11.70% APY + 2.40% in FARM rewards, followed by Celsius/Nexo at +10% APY, BlockFi at +8.60% APY, Vesper at 5.56% APY +24% IN VSP rewards, and Compound at +3.27% APY. The team announced it will soon debut on both Avalanche and Ethereum after Halborn completed its smart contract audit on 18 August.
Rise Online is a multiplayer online role-playing game with over 100,000 users. The game developer recently partnered with Rokosoft to integrate an NFT Marketplace, where in-game items will be bought and sold as NFTs. Integration has begun in closed-beta in the form of ‘Crypto boss events’ where players earn or receive Roco tokens from all monsters in the game as a drop.
HurricaneSwap is the first decentralised cross-chain swap built on Avalanche. It is a trading protocol that aims to create multi-chain assets and confirm transactions at cheaper gas costs than their Ethereum counterparts. The HurricaneSwap LP bridge is a more advanced cross-chain method as it seeks to lower the bid-ask spread during times of extreme price fluctuation. The testnet event started on 30 August with a 1m HCT giveaway.
Kalao is an NFT marketplace with a focus on the adoption of VR technologies. The Kalao framework develops virtual worlds that empower users to create, purchase, sell and collect NFTs. The team plans to launch on Avalanche between September and October.
Colony is a community-driven accelerator built for the Avalanche ecosystem. The main objectives will be to provide early-stage funding to Avalanche built projects and existing Avalanche DeFi protocols. Users will be able to stake Avalanche (AVAX) for upcoming subnet tokens. Community members will determine the distribution and allocation of funds. In addition, the Colony Index will rank the top 10 Avalanche projects by market cap, while the Liquidity Provider Program will deploy 30% of Colony’s to DeFi protocols based on yield maximisation.
As with all new projects, there is significant execution and adoption risk. New projects need to execute on their roadmap to bootstrap liquidity to the network and remain competitive with the high number of similar offerings entering the market. As it currently stands, each blockchain network has homogenous product offerings with incentive programs that dictate the flow of capital. This exacerbates adoption risk in the adverse scenario where appetite for Avalanche products slows down after a 200% price rally in August. This scenario would place meaningful sell-pressure on assets tied to the Avalanche ecosystem with small caps posting outsized losses.
Nothing in this article constitutes professional and/or financial advice. The content is provided exclusively for informational and/or educational purposes. Nothing is to be construed as an offer or a recommendation to buy or sell any type of asset. Seek independent professional advice in regards to financial, tax, legal and other matters.