3 charts reveal the huge value that Yield+ will bring to EOS and BOX
Original author: Dalio
Link: https://dalio.medium.com/3-charts-reveal-the-huge-value-that-yield-will-bring-to-eos-and-box-fd84a1671787
The best Defi project is critical for the success of a public chain. The launch of Yield+ opens a new era for the EOS ecosystem to incentivize Defi projects. This article briefly shows the huge value increase that Yield+ will bring to EOS and BOX through data comparison.
- The impact of Yield+ incentives on EOS and BOX
The EOS Yield+ Blue Paper contains analysis of Defi incentive of Fantom and Polygon, which resulting in a substantial increase in the market value of the public chain and TVL, which both increased by more than 300% and 1500%, while the price of BTC and EOS dropped by about 20% and 50% respectively during this period. I have extracted the data and compared it in the following figure. (HD Figures)
Interpretation of the figure:
It is estimated that the EOS price will increase by 300%. If the TVL incentive reaches 5% , it is expected that TVL will increase significantly in about 1.5 months, and will eventually stabilize at an increase of more than 1500%. During the period, the market cap of the public chain increased by >300%, and the TVL of valid tokens flowing into Defi increased by >450%. Therefore, by analogy, EOS is expected to achieve a market cap increase of >300%.
It is estimated that the amount of EOS locked on BOX will increase by 5–10 times . At present, the total amount of EOS locked by the DefiBOX protocol is about 10 million. It is expected that Yiled+ may achieve an incremental increase of 50 million to 100 million EOS locked into DefiBOX, that is, an increase of 5–10 times, accounting for about 5% to 10% of the total EOS.
- The value potential of BOX
DefiBOX has added the Balance protocol into the 3 major protocols of Swap , Lend and USN; corresponding to the 4 major Defi projects on ETH: Uniswap , AAVE , MakerDAO and Curve , formed a complete Defi protocols hub.
The figure below compares the market cap of EOS with BSC and ETH, as well as the combination of the corresponding top Defi projects BOX and Cake and (UNI+AAVE+MKR+CRV). (HD Figures)
Interpretation of the figure:
Relative valuation method: The market cap of BOX relative to EOS is only 0.26%, and the market cap of the corresponding (UNI+AAVE+MKR+CRV) combination relative to ETH reaches 3.46%, so the relative valuation of BOX can reach 13.23 times (=3.46%/0.26%). A huge space.
Absolute valuation method: The current market cap of ETH is 139 times that of EOS, and the combined market cap of (UNI+AAVE+MKR+CRV) is more than 2,000 times that of BOX. If the strong performance advantage of EOS can surpass the market cap of ETH in the future, 139 times is the value-added space of EOS; then the corresponding value-added space of BOX will reach 2006 times(=7.354/0.003666). A great huge space.
Relative valuationabsolute valuation method: If the two valuation methods are superimposed (other risk factors are not considered), the ideal value-added space of BOX can reach 26540 times (=13.232006). Hard to believe, but it’s the data result!
In addition, Yiled+ increases TVL’s net yield by 5% (the yield in the current trial operation stage is only 1%), and the corresponding BOX value-added space is estimated to increase by 50% to 100%.
- More development potential of BOX
In addition to the 4 major protocols (Swap, Lend, USN, Balance) of DefiBOX, strictly speaking, BSS should be regarded as the 5th major protocol, because it has an independent EOS contract address and has great expandable development petential in the future.
In the figure below, I have combined the 5 major protocols and sorted out their potential scalable protocol content, including leveraged trading, short trading, single-sided AMM, super stablecoins, multi-pool AMM, farms (fixed income and floating income, etc. ), as well as futures, options, ETFs, etc. (HD Figures)
Interpretation of the figure:
DefiBOX has established 5 stable basic protocols, the infrastructure integrity may rank 1st in the entire blockchain Defi ecosystem, and the scalability of functions and protocols is extremely high.
V3, IPFS server, and better DAO governance are also expandable areas. The upcoming EOS-EVM and Antelope-IBC will bring more development space for cross-chain and so on.
Summarize:
Safety & high yield, have always been a hot spot for capital gathering; silky trading experience and rich functions are the magic weapon to attract Defi players. We can see that the DefiBOX team and DAO are making all-out efforts in this direction, prospering together with the EOS and Antelope ecosystems.
BOX as the Top Defi of EOS, the overall function is perfect and stable. At present, its value is seriously underestimated by the market. However, the 5% Yield+ incentive will bring more direct value empowerment and market attention to EOS and BOX, and it is expected that there will be a market cap explosion soon.