How micro-investors create opportunities in the rapidly expanding DeFi market; CitySwap’s multi-level farming system
Provide opportunities for latecomers using a multi-level governance token farming system utilizing multiple sub-tokens.
The DeFi boom, which started with the announcement of Compound’s governance token issuance in May 2020, led to the success of UniSwap and SushiSwap, leading to the creation of a new category called “DeFi” in the cryptocurrency market.
According to Defipulse, a media specialized in DeFi, TVL (Total value locked), which means the total amount of funds invested in the DeFi market as of 30 Nov 2020, has exceeded 14 Billion USD, which has doubled in three months. As of November 30th, there are as many as 65 DeFi-related tokens listed on Binance, and DeFi has become the hottest keyword of 2020 in the cryptocurrency market.
DeFi services are divided into loans, exchanges, derivatives, and payments according to their functions. Recently, TVL in the DEX market, which means decentralized exchange, has rapidly increased. DEX has created a true decentralized exchange by enabling real-time transactions based on AMM-based liquidity pools, rather than a method in which transactions occur in an order book method like the existing centralized exchange.
Major DEXs such as UniSwap, SushiSwap, and CurveFinance issued their own governance tokens, and these tokens were listed on major exchanges such as Binance. Recently, as DEX’s governance token listing and trading have become active, the funds from the blockchain market are rapidly shifting to the DeFi market.
DEX’s governance tokens can be minted by supplying liquidity to the pair-pool, which is primarily a pair of two tokens. However, it is difficult for investors who participated late to expect large profits because the financial powers preempt the major pair-pools.
To overcome these limitations, CitySwap’s governance token CityToken is designed as a multi-level farming system. CitySwap has a Token Economy with DeFi’s Yield Farming enabled City Token (CT) and Metropolis Tokens (MTs) as main components. The 30 MTs, which are scheduled to be issued sequentially by 2021, are derived from the names of major cities in 30 countries, such as Seoul, Moscow, and Singapore, where the cryptocurrency industry is well established, and have a unique issuance amount equal to the number of populations in each city.
In order to farm CT, CitySwap’s governance token, liquidity must be supplied to a pair-pool consisting of 30 MTs and ETH. This multi-level mining method creates a virtuous cycle structure while activating the liquidity supply of CT and MTs, and plays a key role in a sound Yield Farming system that encourages the participation of late investors.
CitySwap CEO Joseph Lubanski said, “CityToken is scheduled to be listed on major exchanges within this year. Based on the liquidity secured through this, we will launch loans(CityCredit), derivatives(CityForex), and payment(CityForex) services sequentially to create a DeFi ecosystem where everyone can trade with confidence.”
CitySwap is currently running a series of airdrop events, and details can be found on the official Telegram channel and on the website.
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