Market Problems & Missions
Since mid-2020, there has been a yield farming mania in the blockchain industry. With DeFi booming, Yield Farming brought insane profits for both farmers and project owners, so naturally, a lot of Yield Farming projects came into play. But they all face three major issues: No intrinsic Value for Incentive Tokens, Un-friendly UX, and hyper-inflation.
The First issue with Incentive Tokens of Yield Farming projects, is that they carry a high inflation rate with no intrinsic value. Besides being used as incentives for Liquidity Providers and Governance activities, Yield Farming tokens don't have too many use cases.
With no Intrinsic Value, the price will most likely be based on speculation, and the token price will most likely panic drop during bad market conditions.
That also hurt early investors since a token with no intrinsic Value usually sinks in terms of price in the long run. And most Yield Farming projects also have complicated UX (User Experience) that stops newcomers from trying the platform or investing in the project.
Another problem occuring in the current Yield-Farming system is Impermanent Loss. Impermanent Loss happens during volatile market conditions, referring to a temporary loss of funds while providing liquidity. Most of the existing Yield Farming platforms haven't found a solution to this problem. Impermanent Loss causes Liquidity Providers to suffer losses during a specific market time, making them feel uncertain to provide liquidity for the platform again. One of the standard solutions is to raise the APY of the pool by giving more tokens to LPās as incentives to prevent Impermanent Loss. This will cause the token's inflation rate to rise which will lead to a decrease in value over time
As a team with a lot of experience and strongly involved in Yield Farming projects in the past, we aim to solve the above problems with our products.
šø By creating a game based on Blockchain that is easy to play with addictive gameplay, we encourage new users to come and earn profit along the way.
ā³ By creating a mix between Yield Farming Incentive Tokens and Non-Fungible Tokens, we give our Token an intrinsic value, which helps keep its value relatively-stable during poor market conditions
š„ By creating a carefully thought out Tokenomics plan, we aim to stop the āunstoppableā inflationary nature of Incentives Tokens.
We proudly introduce to you: Gourmet Galaxy.
The global gaming market was valued at USD 151.55 billion in 2019 and is expected to reach a value of USD 256.97 billion by 2025, registering a CAGR of 9.17% over the forecasted period (2020 ā 2025)
The total hours spent on games continues to grow nearly 8-10% year-over-year. According to Annie app data, by 2020, mobile ad spending will cross USD 240 billion globally. By 2020, Android phone users worldwide are expected to spend 674 billion hours in the entertainment, video player, and editor categoriesā.
Unlike DeFi, where user interest and demand are driven by practical applications and the promise of returns, the NFT market is driven by deep psychological patterns. As the world becomes more and more digital, many objects emerge as digital-native only, and the solution to the ownership question is already here in the form of NFTs.
According to a recent year-end report by NonFungible.com, the leading data provider for the NFT industry, the total market capitalization of all NFTs stood at roughly $210 million in 2019. The report suggests this number could grow by as much as 50% in 2020 to $315 million. By 2021, it is predicted that the NFT market will reach $710 million.
With a major milestone about to be reached in total all-time volume, non-fungible tokens (NFTs) have the potential to become a trillion-dollar market one day.
NFTs are on the verge of hitting a major milestone - USD 100 million NFTs sold (you can check it here), Ryan Sean Adams, founder of crypto investment company Mythos Capital and creator of the Bankless program.
We live in "the earliest of early days," said Adams in a recent Bankless post.
"NFTs will be a trillion-dollar market someday. That means USD 999.9 billion in future opportunities. Weāre just 0.01% of the way in," he added.
Weāve learned about NFTs across gaming, art, culture, collectibles, and domains. But weāve never zoomed out to look at the market as a whole.
What are the categories? Collectibles, Gaming, Worlds, Art, Culture
Which categories are winning? Volumes, Value, Projects
Andrew is one of my favorite pioneers and investors to help us with this. Today heās sharing a breakdown of the first $100m NFTs. Billion-dollar opportunities are likely in each of these categories.
Assets to own. Startups to start. Worlds to build.
Non-fungible tokens are now being used by yield farmers looking for new ways to leverage digital assets through available DeFi and exchange protocols.
Yield farming is nothing more than putting cryptocurrency assets into use by earning a return on the capital invested. There are numerous money markets such as Compound, Curve, and Aave, and these provide the most straightforward path to earning yield.
The term is widely used within the DeFi ecosystem, but now, the first mentions are occurring within the non-fungible token sector as collectibles meet DeFi.
It is clear that blockchain technology has great potential in the gaming industry. It provides significant improvements for gamers and developers, especially in regard to decentralization, transparency, and interoperability.
As a spin-off from the commonly known collectibles in the real world, NFTs can be a gateway means to bring millions of new users to the world of crypto and blockchain technology. Players in gaming economies can become potential new blockchain users as collectible in-game items are turned into NFTs. In addition to the virtual world of gaming, real-world assets such as real estate and artworks can also be tokenized and traded on the blockchain. NFTs are likely to offer much-needed liquidity to these markets and bring in previously untapped revenue streams.
While the market size of NFTs is still quite small as the secondary trading volume is at 2-3 million USD and the total market of NFTs reached $100 million by the end of July 2020. With the DeFi market currently standing at a size of $4 billion, the NFT space is also expected to grow in the months and years to come.
The technology used in NFTs is expected to bring about new changes, not only to the collectibles industry, but also to the blockchain world in upcoming years. Until then, NFTs will undergo many drastic improvements in infrastructure and user interface in order to better-penetrate mainstream markets for curious new users coming into the blockchain industry.
