Understanding DeFiato - the Tokenomics and Prospects Behind the Simplest DeFi Aggregator
When I first started crypto, my first point of entry was DeFi (decentralised finance). I was excited to be able to earn much more lucrative yields compared to traditional finance, with relative ease and autonomy.
But there were admittedly challenges along the way as well. From getting funds on-ramp, to setting up wallets and finding safe DeFi protocols to interact with, it was a tedious process.
You can imagine how excited I was when I found out about DeFiato, a platform that is building the simplest process to get started with DeFi processes, all without the hassle that comes with it.
This includes no interaction with a Web3 wallet, and no interactions with the numerous steps needed to interact with DeFi protocols.
Here’s sharing some details about this project, its native token DFIAT and my general thoughts of its tokenomics and future prospects.
Project Introduction
DeFiato is a CeDefi platform, also known as centralised DeFi. This marries the essential parts of a centralised platform with the universe of DeFi protocols and services across blockchains.
Case in point: DeFiato users can access services such as yield farming with a single click, compared to traditional manual methods that take 10 clicks to complete.
As a DeFi aggregator, DeFiato also allows users to access any DeFi service such as swapping, yield farming, loans/borrowing across various chains.
Perhaps one of the most vital features is also its fiat onramp service, allowing new users to easily get started without the cumbersome onramp process.
What’s more impressive is its success thus far: DeFiato sold out raising $1 million on Avalaunch, driving the highest registrations in history on Daomaker, and sold out in only 2 minutes on Terraformer.
A Look into the DeFiato Platform
DeFiato has a clean and sleek UI overall, allowing users to easily view all the coins they have in their DeFiato wallet, and find their relevant farms.
Users can also easily choose their desired yield farms across blockchains, including BSC, AVAX, MATIC and more, all in one place.
Don’t have the coin pairing needed for the farm? DeFiato also allows for various token swaps easily right on the platform itself.
The Team and Partners Behind DeFiato
Needless to say, a significant factor crucial to a project’s success is its team. Thankfully, the team behind DeFiato is rock solid.
The founding members of the team consist of leaders and experts with years of experience in the blockchain, software development and entrepreneurship space.
The founders have created blockchains with millions of users, and hail from Google, NASA and other entrepreneurial ventures.
There is also an in-house team of over 20 active developers.
DeFiato also has a strong lineup of partners, including Polygon, Mirana (venture arm of ByBit Exchange), and Daomaker.
DFIAT Token Utilities
DFIAT is the native token to DeFiato. As such, every operation within DeFiato that requires payment will go through the DFIAT token.
But why would you want to hold the DFIAT token? To understand this, we need to first explore DeFiato’s revenue model.
DeFiato earns its revenue from fees - this includes swaps conducted on DeFi DEXes using DeFiato, and a share of the profits from yields generated from the farms.
For a user, he/she can enjoy 50% off platform fees by using the DFIAT token. This means lowered swap fees (from 0.2% to 0.1%) and lowered fees from yield farming profits (from 20% to 10%).
As the token native to DeFiato, there will also be future staking and LP incentives with the DFIAT token.
Of course, DFIAT token will also be the governance token when the product transits into a fully DeFi platform.
As such, there are strong utilities for the DFIAT token which should lead to buying and holding pressures.
Token Distribution
The total token supply of DFIAT is 250,000,000.
Majority of the total token distribution has been set aside for ecosystem incentives, liquidity and staking incentives, as well as the treasury.
Token distribution to the seed sale, VC round and Public sale comprises about 21.5% of the total token distribution.
Here’s a breakdown:
Seed sale: Token price at $0.04, with 5% of tokens unlocked at a monthly basis after a 6 month cliff, with full unlock at 24 months
VC round: Token price at $0.06, with 5% of tokens unlocked at a monthly basis after a 6 month cliff, with full unlock at 24 months
Public sale: Token price at $0.08, with 8.89% of tokens unlocked at a monthly basis after a 3 month cliff, with full unlock at 24 months
Overall emissions from the earlier sale rounds are linear and predictable. This coupled with the demand and utility of the tokens suggests minimal inflation impact of the native DFIAT tokens.
Future Roadmap
The future of DeFiato seems promising as well.
In the short term, it will be rolling out fiat on-ramp and support for over 10 chains and ecosystems.
In the mid to long term, some exciting prospects include support for new financial services such as lending and collateralisation, providing support for NFT ownership, and transitioning to a fully decentralised platform.
When new mainstream users come onboard the crypto train, DeFiato is well positioned to be their first foray into DeFi and NFTs in future.
As the platform scales across blockchains, features and users, the increased TVL and demand for swaps and farms puts DeFiato in a good place to scale proportionally and build even better products in time to come.