DeFi 100 Rebase
Tags: Cryptocurrency, Defi, Ethereum, Crypto, Blockchain

Introduction

The year 2020 saw staggering growth and a phenomenal rise in the decentralized finance (DeFi) industry. The DeFi sector continues to break a new high in terms of market cap as well as total value locked.

It will not be wrong to say, 2020 was the year of DeFi. Throughout the year DeFi tokens saw unprecedented growth.

The total market cap of DeFi tokens that stood at $1.6 billion as of 31 Dec 2019 touched $19.95 billion on 21 December 2020. At the time of writing the market cap of DeFi tokens stand at roughly $19 billion.

Source: Coingecko.com

If someone wants to speculate on the growth of the DeFi sector and bet on the sector as a whole instead of investing in one or two tokens, how to do that?

DEFI100-Rebase makes it possible to speculate on the growth of the DeFi sector as a whole by investing in one token that tracks the value of the total DeFi market cap and rebases itself by expanding and contracting supply to align its value with the DeFi Market cap at the ratio of 1:100 billion.

DeFi sector is fueled for long-term growth and current market capital is highly undervalued considering the demand and scope in the sector.

DEFI100-REBASE (D100R)

DEFI100-Rebase is the first project by Wrapp3d, a consortium of people working on creating new synthetic assets to introduce indices and real world tradable assets to the token economy. D100R is an index token that derives its value from the total market cap of DEFI sector.

Why it is required?

Decentralized Finance as a sector has a massive growth potential. However it is not possible for any individual to keep a track of hundred’s of tokens and be benefited by the future growth. Some assets will see increase in their valuation whereas some might fail to achieve their milestones resulting in decline in their valuation. Also over the course of time there will be new projects and tokens that will make way in the top 100. This requires regular update of portfolio. For someone who is not active trader, it is simply not possible to do so.

D100R solves this problem from its core. As an index token with its price pegged to the market cap of top 100 DeFi tokens, D100R makes an ideal asset for an investment to bet on the decentralized finance growth.

The price of D100R increases and decreases as per the valuation of total market capitalisation of decentralized finance sector. The Elastic supply of token adjust itself every rebase to bring the spot price of token in equilibrium to the targeted price, i.e. Market Cap of DeFi at the ratio of 1:100 Bn.

Smart Rebase

Rebase is fairly new concept in cryptocurrency space. Pioneered by Ampleforth (AMPL) and later successfully tested by Base Protocol (BASE) that pegged its value to the total crypto market cap. The algorithmic stable coins are still in experimentation and nascent stage. However it provides one of the best solution to offer a true trustlessly pegged assets.

D100R is a Rebase token that increases or decreases the supply to bring the spot value of the token equal to the target price through positive or negative rebases.

What is Smart in DEFI100 REBASE?

To give market a window where the market forces bring the spot price of the token in equilibrium with the Target price, D100R Rebase will require the following:

Positive Rebase are uncapped.

For rebase to occur, difference between Spot Price & Target Price should be greater than 5%. If the difference is lesser than or equal to 5% there will be no rebase.

Negative Rebase are capped at 10%. This gives the market forces to rebalance the demand and supply and bring Spot price equal to or higher than the Target price.

Vision — DEFI 100-REBASE

Decentralized finance sector is growing with unprecedented speed. Soon DeFi will be a major player in cryptocurrency ecosystem. D100R aims to become the leading Index token that can be used for investing upon or bet on the growth of DeFi sector.

D100R is an experiment to remove the inherent vice in the REBASE model of elastic supply token. By keeping the negative rebase capped at 10% we aim to give market and users more opportunity to drive the prices towards equilibrium by creating demand and reducing supply at the same time.

Oracles

DIA (Decentralised Information Asset) is an open-source, financial information platform that utilises crypto-economic incentives to source and validate data. Market actors can supply, share and use financial and digital asset data.

DEFI100-Rebase token will be powered by DIA data to source the data & feeds for rebase. DIA’s decentralized oracle will source the price feeds from multiple sources to provide the most accurate data.

Conclusion

DEFI100-Rebase tracks the market cap of entire decentralized finance. DeFi is a promising sector with vast potential for growth. D100R powered by decentralized oracles for its rebase by DIA data will become an intruement to track the growth of entire defi sector.