Best Cryptocurrency to Invest in 2022 – HachiFi (HACHI)and Compound
If you’ve been in the crypto space for some time, you know that DeFi is the acronym for decentralized finance. In simple terms, decentralized finance is a category of crypto projects that take away intermediaries from financial transactions. With DeFi protocols, people can access financial tools without intermediaries and with less risk. These crypto protocols enable borrowing, lending, staking, savings, swapping, and much more. Today, there are several DeFi projects in the coin market. But which of them would make a great investment? That’s where the real challenge is.
HachiFi and Compound are top DeFi protocols. But what makes them stand out? We’d be looking at these two tokens, their utility, and what they offer to the decentralized finance sector.
Compound is an Ethereum-based lending and borrowing protocol. Like every other decentralized lending protocol on the cryptocurrency market, lenders on compound earn interest while borrowers pay interests. However, Compound stands out as it incentivizes participants.
As a smart contract platform, Compound enables decentralized borrowing and lending amongst borrowers. However, unlike traditional banks and other DeFi platforms, Compound lenders are not illiquid. Compound rewards synthetic tokens to lenders. These tokens are called cTokens and are representative of the funds deposited. For instance, if a user deposited Ethereum, Compound would reward them with cETH. These synthetic tokens can be transferred and traded. However, it can only be redeemed for the tokens staked.
Additionally, every participant is rewarded with Compound native tokens, COMP. Whether a user borrows, withdraws, or repays on Compound, they receive COMP tokens. This incentive has attracted more participants and encouraged the staking of tokens. As of 2020, over $500 million worth of assets were staked in the Compound protocol.
COMP holders can participate in Compound’s DAO. Holders can vote for changes in the platform. They can also transfer their voting rights to others to vote on their behalf. Even though the Compound model is complex, many new DeFi projects have mimicked it. This wide adoption shows that the concept of the token is widely accepted and profitable.
HachiFi is coined from two words, Hachi and DeFi. DeFi is the shortened form of decentralized Finance, while Hachi is the Japanese word for ‘eight’. Hachi is also a wordplay on the word ‘Hatch’.
HachiFi is a decentralized Layer-III platform that merges NFTs and yield farming concepts. On HachiFi, users can stake their tokens in exchange for NFTs. These NFTs are tokenized domestic pets. The pets listed on Hachi are livestock such as cats, cattle, ducks, dogs, pigs, and sheep. There are about 2000 unique tokenized livestock. The process of staking your altcoin tokens for NFTs is known as NFT farming/breeding. Every NFT on the HachiFi platform is unique, indivisible, and transparent. These non-fungible tokens can also be sold on major platforms like Rarible and OpenSea.
To support transactions on the HachiFi platform, the team created the HACHI token. The native token, HACHI, will not only be used for farming Hachi NFTs but they can also be used as a store of value. When used as a store value, users can save HACHI tokens with the expectation that the price will not plummet. HACHI tokens can also be staked to earn rewards. The amount of your reward will be based on the number of tokens staked. A 5% transaction fee will be charged on all transactions on the platform. This fee will be used to reward traders who have staked with the platform.
HachiFi will be built on a deflationary token model to decrease the total supply while increasing demand. Although there are currently 1 billion tokens in supply, some of this total supply will be burnt in the future. This is another indicator of this DeFi project’s bright future. The token is currently in its presales stage, so investors are advised to start filling up with bags.