Last year will be remembered for many things. The global pandemic changed the way we lived our lives and helped bring not just crypto to the fore, but also DeFi (Decentralized Finance)
It is fair to say that the ‘DeFi’ sector exploded in popularity in 2020. Lending protocols, borrowing stablecoins and mining liquidity (also known as yield farming) has been opened to the masses and the masses have responded favourably.
In 2019, the value of ETH locked in DeFi protocols grew from $293 million to over $687 million. In the first eight months of 2020, the value grew to more than $8.2 billion. According to Coindesk, by the end of the first quarter of 2020, the dollar value of crypto assets under management by DeFi applications stood at $50 billion. This is clearly big business and only getting bigger.
Created on the 24th of March, SafeETH is a new autonomous yield and liquidity generation protocol. The community-run SafeETH generates yield by adding a 4% tax on every buy and sell transaction whilst splitting that fee amongst token holders and the liquidity pool instantly.
The protocol rewards its token holders by dividing 2% of each transaction proportionally across existing holders, meaning the number of tokens in the holder’s wallet will increase as people buy and sell as long as tokens are held. In addition, 2% goes automatically to the liquidity pool locking forever.
Being a community-run protocol, token holders (there are more than 4000 token holders already) can utilize their right to vote on, and thus decide, the direction of an underlying protocol. This self-governance has become an increasingly valuable commodity in the burgeoning DeFi sector with a number of DeFi governance tokens enjoying bullish price performance in 2020.
Billed as the Safe ETH community, SafeETH provides a way to earn yield from holding tokens without the need to stake or farm. This ground-breaking method could possibly negate the need to stake or farm coins by locking up token value where it is not easily accessed and/or having to deal with impermanent loss (something LP providers and stakers can resonate with).
With SafeETH, holders get all the benefits of farming and staking, but without the hassles. This mechanism gives investors the opportunity and an incentive to help SafeETH develop and grow, due to the fact that the more transaction volume there is, the greater the fees and the rewards there is to be distributed amongst the holders. What this method means is that SafeETHs success is the success of the investors, the model it should be.
Having started with an initial 1,000,000,000,000,000 tokens, 60% of the total supply of SafeETH was sent to a blackhole/burn address, thus permanently reducing the supply. As the largest holder of SafeETH, the blackhole/burn address also receives a share of each transaction fee. Because this share is “burned” the supply of SafeETH is continually reduced.
Available on pancakeswap the leading DEX on Binance Smart Chain (BSC) which is cheaper and faster than uniswap, SafeETH is expected to be listed on Coingecko and CoinMarketCap soon.
With other exciting plans ahead, including an NFT marketplace and charity donations, SafeETH looks one to watch for 2021. You can visit them here: https://safeethbsc.com/
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