Project Insight: PlutusDefi
In this specific newsletter, I wanted to take a deep dive into ‘PlutusDefi’ a really interesting decentralised finance project that upholds the core values of decentralisation, providing an aggregated lending service that puts the user first, offering the best rates for lending and just generally giving access for users to put their capital to work and provide further options for capital growth.
PlutusDeFi is a full-stack defi aggregator, plugging in multiple products and defi applications into one single platform, focusing on User experience, design, privacy and anonymity. PlutusDefi truly believes in the core values of decentralized finance and the absolute freedom of capital, they are looking to achieve a total decoupling and true sovereign wealth for everyone with our strong focus on anonymized privacy.
PlutusDefi originally started as a lending platform but the team have slightly pivoted since to make sure that PlutusDefi is a ‘Full Stack Defi’ service that offers much more than just your usual lending and borrowing services. The PlutusDefi platform will be an aggregator that will include ETH mixers, on-chain privacy protocols, buying insurance from providers for deposits on lending, mobile money credits to defi, native mobile app on Android and eventually a defi debit card.
The team behind PlutusDefi are trying their best to make decentralised finance available to everyone all around the world, to give power back to users and let users control how they spent or use their funds, they do this by offering;
Aggregated Defi Lending, Insurance & Privacy by combining Compound, DyDx, Nexus Mutual, Aztec.
Fiat to Crypto Savings Bridge
Defi Lending -Mobile Credits to Defi (M-Pesa to Crypto)
Defi Debit Cards
Defi Privacy - Tornado.Cash + Plutus ETH Bl3nd3r (Blender), OpenVPN, Tor Network.
Defi-as-a-Service (SDK) for Exchanges
Offering such a wide range of services for users is tremendous, and it separates the project from its competitors, I personally really like the pivot to offer such an extended range of products and not just go with a primary lending tool. I think that PlutusDefi has a great list of services that are perfect for any user looking to get hands-on with defi related products, the team stays dedicated to making sure their products are excellent for clients who have experience with crypto and those who do not.
Taking a look at the PlutusDefi team, there seems to be an excellent contrast between backend developers and forward-facing designers, the team seems to be very well rounded from all aspects of the business and have high overall industry experience.
It’s great to see a project being developed by experienced and well-rounded team members in their respected fields; there are numerous all-star team members on PlutusDefi that will be a crucial aspect of bringing this vision into reality. Strategy & marketing CEO and founder Arnie Hill has a long list of experience in starting companies from different industries and has worked on projects such as Obsidian Capital Fund, Jacked Supplements and now PlutusDefi. Product & operations co-founder Ali Hararwala is another all-star member of the team, Ali has vast experience within the product design field and previously has held positions at Wanchain, Oracle and Citigroup. Ali’s substantial experience with product design will be a perfect fit for deciding what products to deliver and what users are looking for. The rest of the team are just as strong with a large portion of them having worked with all-star companies. I am excited to see what then can do over the next few months and years with this new defi platform!
PlutusDefi is a closed and centralized project that is run by the in-house team, and many people have the preconceived idea that a majority of project inside of the blockchain space are open source and projects that are not open source are not as trusted or transparent. Personally, for me I think a central team is great for development as you don’t have to rely on outside sources and the team seem pretty experienced in delivering such products, for me, it could be considered a bonus.
PlutusDefi has a long list of partners and investors who are helping support their mission, and these consist of NGC Ventures, Eric Benz founder of Changelly, Black Edge Capital and Danish Chaudhry managing director of Bitcoin.comExchange to name a few. I am super excited to see how this team expands in the future.
Lend & Earn
PlutusDeFi's lending product 'Lend & Earn' will allow for consumers to select the best defi lending protocols in a simple 3-step process. A users lending portfolio along with interest earned will be displayed in an easy to monitor and understand interface, personally one of the best interfaces I have had the pleasure of using within defi…
For those who are unaware of how this lending product works, some of the key features include; Aggregate industry's leading lending protocols like Compound and dYdX, earning the best available interest rates with the most simple to use UX.
Over the past few weeks and months, we have seen this parabolic growth in the space of defi, and users are starting to get familiar with the lending and borrowing services as it grows in popularity. I think the simplistic way that PlutusDefi is offering a 'Full Stack Defi' is super cool as it allows pretty much anyone to start lending in just a few easy steps, they have designed the process perfectly, and I think they have a reliable product that can be adopted by the community. Also being able to aggregate the best rates for lending is an excellent feature to offer.
PlutusDeFi’s Bl3nd3r enables privacy for users when sending transactions by disrupting and breaking the connection between the sender and recipient address. There is no way to link the withdrawal from the Bl3nd3r from the sender, this is done by using complex smart contracts with zkSnarks proof, which accept deposits into our liquidity pool (Bl3nd3r) and spits out the assets to a new address, by using the proof (or a key) provided at the time of deposit. By using zkSnarks, all transactions are 100% anonymous…
Bl3nd3r is a fresh product that PlutusDefi is shipping, being able to offer a method of privacy and complete anonymity on the Ethereum blockchain is something super cool, offering and layering a transaction mixer into their product options is something pretty unique and something I would love to have available to me.
A transaction mixer works by mixing the deposits from multiple pseudo-anonymous users before the transaction arrives at the designated recipient address. Once mixed, it becomes mathematically challenging due to the cryptographic mathematics used to mask the users and their transactions. Knowing who the users are and the amounts is near impossible. Users will be able to mix Ethereum and DAI initially, but hopefully, this will roll out into other pairings in the future.
One of the apparent differences I see between PlutusDefi and other lending or defi services is that PlutusDefi has a utility-based token that provides users with a real-world use case with value. The token enables aligned incentives and co-ordination.
The PlutusDeFi token is utilised in the following ways:
Burn. A percentage of the PlutusDeFi tokens collected from the network fees are burned. This will reward Plutus holders as adoption grows.
Network Fees. PlutusDeFi holders have control over the platform. PlutusDeFi is a self-amending network where holders will decide on upgrades and potential fixes. Tokens have to be bonded in order to vote.
Bonding and Governance. Fees will be collected as a percentage of the smart contract payments executed. PlutusDeFi tokens are burned as fees as the protocol is utilised.
Staking. A percentage of the fees collected will be paid out to token holders who have token staked in a non-custodial staking contract. No node is required to run.
It is super cool to see a project putting thought into how they will provide value with their token and not just use it as a marketing tool or way to increase profits/market cap. I also believe that the token allocation of the project is fair and it seems as though they have thought about all possible avenues, with over 50% of PLT being sold in seed and private rounds and then the remainder being broken down in subcategories such as community & partnerships, foundation funds, reserve funds and community.
As you can see above, this is the current breakdown of token allocation, I think it is pretty fair, and the breakdown for the ‘teams’ inhouse operations does not seem to be too large. Also to note there are some lockups for 1-2.5 years for the foundation, which is another great little tweak to stop tokens being flooded onto the market. I think with a good chunk of the tokens being sold off in the seed and private round, and with a strong token use case, I am super excited to see how the price reflects once it goes live on exchanges.
On the 21st of July, the token PLT will be launched via a bonding curve offering, and this will allow the public to get engaged and purchase the PLT token for the first time. The hype and demand currently for PLT seems to be pretty extreme, and the team seem to feel reasonably confident that the token bonding curve will be a huge success.
The PLT token will start at $0.09 and will gradually climb as more and more tokens get sold until the ceiling of $0.22 is either hit or the tokens are sold out. The number of tokens that will be for sale in this bonding curve is 3,000,000, and the sale will last 24 hours. The team are confident that the sale will last a matter of minutes.
The token bonding curve is an emerging cryptoeconomic primitive: protocol based incentive systems that enable coordination of network participants to achieve shared goals. Tokens incentive players in an economic game towards an outcome that are mutually beneficial. - Yos Riady
If you would like to learn more about how to take part in the bonding curve and how to get starting with getting your hands on PLT, I will re-share some of the information that was shared publicly from the PlutusDefi team below. In my opinion, it is looking to be a reasonably straight forward process and simple for most users to understand.
Here is some of the information that was shared by the team, or full article is here.
As we will be using a DEX exchange, users will be able to interact with our token smart contract directly, on a dedicated PlutusDeFi/Domolite.io DEX instance.
As this sale takes part on a DEX, there are no KYC requirements.
You will need;
Metamask Chrome Extension
Wrapped ETH (You can do this via the DEX, however, if you would like a faster transaction, you can pre-convert your ETH to wETH)
Simply click “Connect Wallet” and opt for Metamask. You do not need to create an account.
Step 1: Select “Connect to Metamask”
Step 2: Once “Connect to Metamask” is selected, connect your wallet with the platform on the Metamask Prompt Notification
Step 3: Once you are connected, you will be able to see the first part of your ETH address in the top right corner of your browser. It’s as simple as that.
I think defi projects generally are seeing a lot of hype and momentum right now, with many projects receiving high praise for just delivering a pretty basic service package, it is great to see a project like PlutusDefi pushing the boundaries of what they are offering and providing a pretty strong use-case for their token.
Defi over the next few months and years will likely be a significant onramp for both users who are experienced with crypto and those who are not, why would someone use a banking service that offers 1.5% return a year when there are are the same services being offered in the blockchain space with 5-7x those yearly returns with the addition of all the extra benefits you get when using blockchain over centralised parties.
Generally speaking, I am very bullish on PlutusDefi and am looking forward to watching their products and services rollout over the coming few weeks, I think the team have the required experience to deliver a high-level product that competes well in such a competitive market. I think PlutusDefi have a powerful suite of defi related products and their aggregator for lending is going to be a solid addition.
If you would like to learn more about this project, you can check out their website at the link: https://plutusdefi.com. I hope you enjoyed reading this newsletter.
- Thank you for reading, Cactus