Learn about COLONY | Is the Avalanche Protocol’s accelerator worth a bet?
Let’s talk about a new project on Avalanche, COLONY. (It is a new project, similar to a foundation on Avalanche).
Let’s briefly talk about Avalanche’s background. After the development of DeFi last year, all public chains began to compete along this track. Avalanche is the same. It made great efforts in development and operation this year. So far, lending, DEX, cross-chain bridge ecosystem, etc., that should be available on DeFi are all on Avalanche.
In the DeFi market, originally, Ethereum has always been dominant. However, its Layer2 is slow, which leads to high transaction fees. As a result, various public chains found the opportunity to catch up.
In August this year, Avalanche took $180 million USD for its DeFi incentive program. It exploded in popularity, and its TVL rose 15 times the initial value at once. Avalanche became popular instantly. The token price rose, the wallet interfaces increased. This is like related to the butterfly effect, which means something small with imperceptible changes lead to large-scale and unpredictable variation or outcome.
It fully shows that subsidies are the primary productive force at the current stage, and later FTM, Matic, and Solana replicated the same success, proving this statement.
In simple words, it is divided into four sections
1. Angel Investment. 50% of COLONY’s funds will be invested in new projects on Avalanche. The main goal is to increase the financing efficiency of some high-quality projects to spend all their time on development, and not waste time on financing. Unlike many users’ worries, the private sale experts of the team are only responsible for detailed and strict analysis of the project, fundamental review, and evaluation of the project, and the community vote will decide the specific investment.
2. Validation and staking guarantees a low premium. COLONY will buy 10% of the capital into AVAX and become a validation node. Then the staking reward is distributed to the community, that is, the token holder. Currently, the staked proportion of AVAX is 63%, and the annualized staking reward is about 10%. The income of this part depends very much on the price of AVAX itself. Of course, the verification of other projects can also be included by voting in the later stage.
3. Leading mainstream project investment. COLONY will allocate 10% of the funds to invest in the top ten projects of the Avalanche ecosystem and create DeFi derivatives according to the index allocation.
4. LP mining profit. COLONY will use 30% of the capital to form various mainstream LPs, which can provide liquidity for the Avalanche ecosystem, and also provide
a summary for the four earnings above. In fact, and generally speaking, it is more like momentum investing. Small returns are used for long-term flow, and then large funds are dispersed to make Angel Investments overcome overdue returns. Then, Avalanche prospers.
The COLONY Team
For an investment-oriented project, the team members decide how far the project can go.
The COLONY team is mainly from France. Elie LE REST, its CEO, once served as the co-founder of ExoAlpha, a quantitative trading company, and the director of Blockchain & Digital-Assets Specialist, an investment bank of Largillière Finance.
Professor Jean Baptiste, chief investment officer, was also the co-founder and Chief information officer of Olymp Capital.
Aurelien Ynden, the chief analyst, was once a business engineer of Groupe IT link, with a rich background in mathematics and finance.
Jean-Marc Bonnefous, chief operating officer, is an associate professor of finance at IE business school and manages an asset management company.
David Lifchitz, chief quantitative trading research officer, is a well-known expert in the traditional financial field.
Alexandre Costantini, chief technology officer, worked in Infovista, a well-known computer software company, for four years.
Overall, the team’s information is very transparent, and all resumes can be found on LinkedIn, which is bound to be a good thing for investment.
The ecosystem accelerator can nurture the public chain
Objectively speaking, the early public chain competition still depends on subsidies, which when in place, the scene would be bustling; If there are no subsidies, the scene would be deserted.
Now, these DeFi miners are very realistic. Depending on safety and APR. Whichever miners that have a higher income of more than a dozen points can pack up and leave overnight. If it’s a hundred points higher, it doesn’t matter if it’s safe or not, anyone would rush head first.
Generally, only after more than 6 months of long-term mining, the users will say: Oh, the DEX on Pangolin or BENQI lending protocol is still very useful, and no safety incidents occurred, so they gradually become the leader.
This leader will develop positive feedback and nurture the Avalanche public chain.
This process takes time to form. Just like the lending leaders on Ethereum, we only think of AAVE, Maker, and Compound… After all, these projects have been in the business since 2017 or 2018. There is no need to be in a hurry.
In addition, from the perspective of traffic, the advantages of this kind of DAO are obvious,
The Avalanche protocol is the most developer-friendly and customizable high-performance public chain. The Avalanche protocol has the fastest on-chain transaction finality and the largest number of validators, ensuring the security of all PoS protocol activities. In addition, the Avalanche protocol has features as it has high speed, low-cost, and is environmentally friendly. Applications that support smart contracts can achieve excellent competitiveness by deploying on the Avalanche protocol if they want to surpass their competitors. Unbelievable? Try out the Avalanche protocol now.