DEFHOLD Review – How DEFHOLD Pays You to HODL

Project Reviews / 01.11.2020

DEFHOLD is a non-inflationary DeFi ecosystem that attempts to rectify some of the most critical issues in the market today. The platform introduces a variety of proprietary protocols to incentivize token holders to maintain their investments longer. Additionally, the network intends to offer a full suite of DeFi services to help investors increase their ROIs.

What Problems Does DEFHOLD Attempt to Fix?

It would be hard to argue that the DeFi trading sector is fueled by pure speculation at this moment. Investors are buying these tokens to sell them at a later date for a higher profit. This form of arbitrage trading is popular but can lead to issues when investors display weak hands.

Speculative investors are easy to spook, and at a whim, they can liquidate their entire holdings. Sadly, this situation only leads to a waterfall effect in which a rapid sell-off occurs. This situation sheds millions from a project in minutes and leaves unprepared investors holding the bag. The main issue is that investors lack the incentive to hold cryptocurrencies during market dumps.

The second issue that DEFHOLD fixes is inflation. As the DeFi market expands, more and more platforms enter the space. Each of these platforms chips away at the total liquidity in the market. Additionally, each platform continuously issues new tokens to its users to bolster its liquidity pools. The problem is that each token issuance detracts from the value of the tokens already in circulation.

How Does DEFHOLD Work

DEFHOLD solves both of these problems in a unique way. For one, the platform introduces a cap on their tokens. This cap ensures the scarcity of the digital asset as time progresses. Developers insist that no additional DEFO token will ever be minted. In this way, DEFHOLD is different from the competition, which depends on inflationary tokens, which they have to mint to enhance their APY continuously. 

This scarcity is a big draw for investors who understand the basic principles of supply and demand. In essence, this strategy guarantees the DEFO holders that the tokens’ market price will not be affected by an infinite increasing supply. As such, DEFHOLD introduces the world to the first truly non-inflationary staking and farming revenue streams

Earn Passive Income

DEFHOLD allows anyone to earn a passive income without any prior crypto trading experience. Specifically, the network offers investors access to multiple revenue streams. These systems are designed to provide yield-generating investments without the need to invest large amounts of time. Amazingly, these mechanisms also work to increase the number of long-term holders. 

DEFO System

The first system incentivizes people holding their tokens by using an EWF (Early Withdrawal Fee) mechanism. The EWF only comes into effect when stakers and farmers want to withdraw their assets before the term of the lock-up period expires. These funds are collected and then split amongst the remaining pool members. This strategy gives investors real reasons to join the platform’s pools for the lockup period’s entirety.

The second revenue stream comes in the form of Airdrops. DEFO will conduct monthly Airdrops to its users. To qualify for these coins, you must hold DEFO for at least one month. Notably, the firm’s Airdrop fund will automatically release its holdings at a 10% rate over 10 months. Each monthly release will further incentivize token holders to remain steady in their investment strategy. Keenly, the first investors who will qualify for these Airdrops will be presale participants. 

Transfer Fees

DEFHOLD introduces another yield generating mechanism into the equation. A small transfer fee will be applied to every DEFO token transfer. These funds are collected and redistributed to stakers and farmers. Specifically, the transfer fee will amount to 2% of the transaction value. Both EWF and transfer fee revenues are distributed to stakers and farmers to increase their revenues and incentivize them to provide liquidity to the DEFHOLD ecosystem.

DEFO Token

defo token tokenomics

DEFO is the native token of  DEFHOLD. This resilient token serves many purposes in the ecosystem. Users can stake or farm their assets into pools with different pre-defined lock-up periods using the token. Initially, DEFHOLD users can stake DEFO tokens or farm DEFO/ETH & DEFO/USDT LP tokens.

In the future, additional token pools will be added based on community proposals once the governance mechanism implements. Crucially, every additional token pool needs to stake the amount corresponding to the EWF in DEFO tokens.  Wisely, this strategy ensures a continuous price increase thanks to owning DEFO tokens to access DEFHOLD features.

Governance

Shortly following the launch of the platform, DEFHOLD will introduce a fully decentralized governance system. Users will have the ability to make proposals related to future developments and vote on important upgrades to the network. These upgrades could include a vote to launch new tokens, different lock-up periods, changing the rate or allocating the transfer fee, or any other network related alterations.

Presale Details

Wisely, DEFHOLD has chosen to host its Presale on Liquidity Dividends Protocol (LID). LID allows investors to prevent rug pulls because the platform locks up tokens using smart contracts. In this way, investors can trust that they get fair access to the market. DEFHOLD will automatically and definitively lock 75% of ETH raised in its Uniswap liquidity pool together with 19.50% of the DEFO tokens. Additionally, the firm intends to time-lock its marketing, team, and Airdrop funds. These funds will release monthly at a 10% rate over the following ten months.

There will be 3,576 DEFO available to the public. The event will begin on 11/18/2020, 9:00 AM PST. The presale base price is set at 1 ETH = 1.56 DEFO, and presale investors can receive a bonus of up to 25%. There is a minimum contribution of 0.1 ETH and a max contribution of 25 ETH.

DEFHOLD – A Creative Approach to an Age-Old Problem

DEFHOLD developers really thought outside the box with this venture. Their strategy seems to be the answer to the problem of shaky handed investors. It’s easy to imagine this firm seeing great success as its users gain so much from their participation if the project is successful.

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David Hamilton aka DavidtheWriter is a long time Bitcoinist and cryptocurrency journalist. Currently, he has over a thousand articles published on blockchain technology. His expertise and experience makes him one of the most reputable writers in the sector.