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VenomDAO to Build a Robust DeFi Liquidity Infrastructure on Harmony in 2022


btcmanager.com 21 February 2022 17:27, UTC
Reading time: ~3 m

The future of blockchain and crypto is interoperable and hierarchy free, dominated by decentralized autonomous organizations (DAOs). This connection between open networks is only necessary; end users need to draw more, switch between platforms all without moving between tabs. Already, the building blocks of this cross-chain and efficient future are being actively demonstrated by emerging DeFi and NFTs projects. 

Scaling and fee challenges in Ethereum are forcing users to alternative networks, which can provide the same link to the base layer but in a more scalable and low-fee environment. 

Ethereum is the bona fide home of DeFi and NFTs, at least reading from numbers. There is over $220 billion in Total Value Locked (TVL) and billions in NFTs trading volumes posted. However, the high demand for block space is a major challenge forcing innovation and providing an opportunity for equally ambitious products like VenomDAO to launch on Harmony.

VenomDAO is Building on Harmony

Harmony is a layer-2 blockchain that’s EVM compatible, offering fast transaction settlements and over 1000X lower fees. The platform offers two main competitive advantages in costs and processing speeds—preventing lags, a reason explaining the expansion in TVL to over $1.5 billion in recent months. 

From the security, low-fees, and high scalability of Harmony, VenomDAO is building a cross-chain, multi-product DeFi DAO whose solutions would encompass lending, swapping, derivatives trading, staking, and more. As a DAO, the product is decentralized, community-driven, and fairly launched. 

Major Milestones in 2021

After their initial launch in March 2021 with the activation of ViperSwap on Harmony, the platform has rapidly grown its TVL over the past few months.  ViperSwap is the first Automated Market Maker (AMM) DEX on the high throughput Harmony which incentivizes liquidity provision, credited for popularizing yield farming in the then restive Harmony. 

Of note, ViperSwap introduced the lock and unlock system which has been adopted by numerous forks building on Harmony and in other compatible networks. In subsequent months, ViperSwap launched the DeFi week, a campaign allowing users to bridge their tokens from the Binance Smart Chain (BSC) and Ethereum to Harmony for yield farming and earning more rewards due to its irresistibly high rewards, especially in June 2021. 

In July, they launched the ViperNest—a single token staking platform inspired by PancakeSwap’s Syrup pools. It was during this time that they also launched the CobraSwap on BSC before introducing Community Pools two months later in August 2021.

ViperSwap’s Community Pools were expressly formed for other DeFi protocols to easily build up liquidity. The solution worked by incentivizing other users to stake their digital assets and liquidity provider tokens in exchange for high rewards. Participants included DaVinci, Frayala, KuroShiba, and more. 

Building a Robust Liquidity Infrastructure in Harmony

The core objective for VenomDAO is to build a robust liquidity infrastructure in Harmony in 2022. Ahead of this, VenomDAO has built a solid foundation with Euphoria—an algorithmic reserve currency for stablecoins in Harmony based around the WAGMI token and launched in November 2021—and Comfy Money. 

The latter specifically brings new liquidity and exciting use cases to the expanding Harmony ecosystem. Comfy Money comprise of three tokens, including COMFY—the ecosystem’s medium of exchange, CSHARE—a governance token which can be staked for COMFY rewards, and CBOND—distributed to users who support the pegging of the COMFY and ONE tokens via bonding. CBOND can be exchanged for a redemption bonus.

The VenomDAO Roadmap

Going forward, VenomDAO plans to release a money market to capture more TVL for Harmony while also improving the DAO’s overall liquidity. 

At the same time, they will release a stablecoin swapping platform, a perpetual trading portal leveraging the money market and ViperSwap, Protocol Owned Liquidity (POL) offering, besides auto-staking and flexible vesting, a bond-as-a-service for projects that want to own their liquidity, and a launchpad allowing projects to bootstrap and own their liquidity via POL.

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