DeFi News

How Moonkat finance is adding spice to DeFi Space, increasing adoption

TL;DR Breakdown

  • More about MoonKat Finance.
  • MoonKat’s solutions to major DeFi deficiencies

Moonkat Finance is the DeFi project poised to bring disruptive solution to the major flaw experienced in the DeFi space today, Inflation.

It is a fully community-centric platform programmed to reward holders while increasing both liquidity and value. It does this by applying a 5 percent tax per transaction (buy/sell/transfer).

DeFi problem Moonkat Finance seeks to solve

DeFi has been touted as the silver bullet that tackles the inherent flaws in the banking sector. Some experts even claim that decentralized finance protocols have an opportunity to render banks obsolete. Although DeFi isn’t without promise, this thriving corner of the crypto market is grappling with its own unique set of problems.

The Blockchain and DeFi of today often create hyperinflation. For example, A new protocol or platform will set a high reward rate to attract early users and liquidity. This early period of low demand, coupled with a high inflation rate, creates a hyperinflationary model where most tokens die.

This leads to a period of a bearish market or decline in demand as the inflation rate remains the same. Hyperinflation creates volatility thereby harming token growth.

Moonkat’s Solution

The Moonkat taxation model might be a way to tackle the current hyperinflationary models. The 5 percent tax is broken down such that 3 percent of every transaction carried out is taken and re-distributed to all TOKEN holders in $BNB. Users collect $BNB weekly by accessing the platform’s DApp. Token holders are also rewarded without releasing more of their native token into circulation.

The other 2 percent of every transaction contributes toward automatically generating further liquidity on Pancake Swap, thereby benefiting long-term Token holders the most. The initial liquidity is locked away forever. For the auto-added liquidity, the Liquidity Provider Tokens(LP) (think “ticket to liquidity pool”) are burnt regularly so that it’s technically impossible to remove liquidity at any time, leading to an ever-increasing price floor in the long term and little to no inflation rate.

Moonkat presale is scheduled to take place in early June, and the company’s goal is to secure mainstream adoption thereafter. One of the project’s main priorities is ensuring that its infrastructure is easily accessible for users who are based on mobile devices — with a user interface that’s easy to navigate and understand.

Many industry insiders believe we haven’t seen the eventual global-adoption-ready DeFi protocol, a problem Moonkat seeks to solve. To know more about Moonkat Finance, visit the website.

This post was last modified on May 28, 2021 10:23 pm

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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