deFarm is a Social Trading platform, connecting investors and fund managers through a smart-contract system. Besides, deFarm also aims to become a new social network, especially for traders. So what makes deFarm products outstanding? What’s notable about the project? Let’s find out in today’s article.
To better grasp the content of the article, people can refer to the following content to easily access deFarm’s new model:
- SocialFi – Huge Trend In The Next Cycle
- Friend.tech & Base’s Strategic SocialFi Cards
- Social Network Development Stages: From Web2 Towards Web3
- What is SocialFi? TOP 5 Most Outstanding SocialFi Projects Currently
Overview of deFarm
What is deFarm?
deFarm is a completely new Social Finance platform, combining elements of a social network and a general investment platform Social Trading. In simple terms, deFarm is an intermediary social network, connecting investors with professional fund managers to create the most effective joint investment environment.
deFarm allows users to create different Farms depending on each individual’s investment taste. Farms are DeFi Vaults, which can be used to perform a Long/Short transaction or can be maintained long-term according to the investment strategies of the Farm owner.
Users can use deFarm to search for opportunities, ideas or short-term trading setups. They can also invest in funds of more professional traders. Or users themselves can become a fund manager, based entirely on their abilities.
deFarm applies the Layer system in design. To put it simply, deFarm has 2 layers, one is Social Layer and the other is Asset Management Layer.
Social Layer
Social Layer is the layer above the surface, representing the deFarm “social network” with the appearance of Seed.
Seed is a type of social token, representing a user when participating in deFarm. Holding another person’s Seed allows your friend to join that person’s special chat group, receive notifications for each person creating a new Farm, or join that person’s Private Farms.
deFarm’s Seed operates under a “creator share” model similar to previous social products such as BitClout, DeSo or more recently Friend Tech.
The value of Seed depends on supply and demand similar to Fiend Tech key, however for deFarm, because Seed is closely tied to investment activities, when a user invests or manages capital effectively, their Seed value increases. Or their reputation will also increase.
With the appearance of Seed, deFarm becomes a very new SocialFi social network, with a lot of competition and appeal. Instead of simply regular content, the content in the deFarm social network is trading ideas and trading strategies. This can bring more value, especially for traders and investors.
Asset Management Layer
For the second layer serving asset management needs, deFarm introduces Farms, which are DeFi Vaults.
Single Farm
This is considered one of deFarm’s main products, which can currently be experienced in the project’s Testnet. Single Farm is a DeFi Vault that can execute a Long/Short trade order.
If a user has a trading idea, they can present that idea, their indicators, their setups into a Single Farm. This Single Farm is then made public and if other users also agree with this trading idea they can invest in that Farm.
For example, user A sees that Bitcoin is at the 24k support zone and can execute a Long order in this zone, he can create a Farm with such a setup and raise capital for this idea of his. After calling for capital, he makes a transaction with the amount of money raised. The profit or loss is later divided equally according to the amount of contributions from investors.
Single Farm creates a win-win environment for all users. Investors can receive higher profits than on their regular trades while Farm owners can receive additional commissions from successful trades.
Seasonal Farm
The second product is also one of the very important products in the deFarm ecosystem. Seasonal Farm is a DeFi Vaulth that exists for a certain period of time.
If the Single Farm product only serves one transaction or one short-term setup, Seasonal Farm can operate for a longer period of time. Its operation can be understood as a traditional investment fund, but the difference is that it runs on smart-contracts.
Investors’ money deposited into Seasonal Farm will be kept in a smart-contract in a transparent and non-custodial manner. Investors can easily see the Farm’s activities as well as make investments or withdraw money as desired. And managers need to have a long-term strategy and better risk management if they want to control commissions from investors.
In addition, according to the project documents, deFarm is also developing other investment products such as NFT Farm or Seed House.
Potential of deFarm
deFarm is a product that brings newness to the SocialFi, Social Trading and even PerpDEX markets. deFarm is trying to bring users a completely new investment experience that is both pleasant and effective.
SocialFi is gradually becoming a huge trend in the crypto market. Orienting development towards SocialFi, socializing investment activities in deFarm has long-term development potential. New users absolutely have the opportunity to experience and enjoy deFarm.
In addition, creating a social trading investment environment also helps contribute a large amount of liquidity to DEX exchanges. The success of deFarm can also follow the success of DEX exchanges on many different blockchains.
Furthermore, I am quite bullish on deFarm applying Seed to their products. This is a trend-following move but very suitable for the project. Especially deFarm’s Farms contribute to creating value for this Seed, instead of just a Ponzi model like we have witnessed.
summary
deFarm is an interesting new project in the SocialFi segment, bringing quite different experiences to users. In addition, the project team continuously updates and improves their application, demonstrating their dedication to the project.
It can be said that deFarm is a potential candidate in the future SocialFi trend. Hope this article gives you an in-depth perspective on this new product.
Project Information Channel
- Twitter: https://twitter.com/defarm_ETH
- Telegram: https://t.me/defarm_eth
- DeBank: https://debank.com/official/deFarm
- Instructions for participating in deFarm testnet:
