Shezmu - Unlocking DeFi's Liquidity through Hybrid Pools
Revolutionizing DeFi Liquidity
$SHEZMU is up more than 500%
Still under $2M MC
What I think of its growth potential 🧵👇
The lending space is has been overlooked.
Throughout 2023, the market size for lending protocols grew by a staggering ~3x to $73B
Its an EXTREMELY profitable business, think of it like Banks.
@aave $AAVE has a TVL of $10B
$1.5B MC
$300M of annualized fees
@RDNTCapital $RDNT is an omnichain lending borrowing
TVL of $670M
$145M MC
$27M annualized fees
Both of these projects are built around borrowing and lending only traditional assets like your cryptocurrencies.
Enter @ShezmuTech which allows users to collateralize both NFTs and ERC20 tokens on top of how the are already having a bonding mechanism
$SHEZMU is being noticed recently for their innovation and their prices have been reflecting it.
Here are some reason why I think they are primed for growth
Current MC at $2M
They have a growth fund valued at ~$4M 2x more than its current MC
Deflationary token with $40K worth burned a day
For a CDP protocol with such low MC is unheard of
Their future developments ahead will be crucial (I wouldn’t be surprised if they support LSD and LRT tokens as well.)
Why fusion with NFTs you may wonder?
I see it as a strategic alignment with the larger industry trends
Luxury brands will have NFTs and these NFTs would represent immense value
Unlocking these value will bring lots of benefits
Also the NFT market size is already at $20B in 2022 and this could balloon even bigger in the coming cycle. How so?
More games and projects have NFTs to create community and value
NFTs will be analogous to owning a brand
Brand or IP value would accrue with time and community building. And this becomes valuable from what we see with @pudgypenguins
@ShezmuTech’s Oasis is DeFi’s first hybrid CDP protocol.
They aim to unify DeFi through their support for the variety of assets through their hybrid lending mechanism.
Isolated markets for each asset type
This means distinct tiers and Loan-to-Value (LTV) requirements can be assigned based on the asset’s characteristics.
For instance, a stablecoin with low volatility and high liquidity might require less collateral compared to a more volatile NFT collection.
Isolated Markets and Risk Management
This means risks are isolated risks to that specific pool or market so as to prevent widespread contagion.
It localizes the impact of any adverse events.
If one pool faces issues, this isolation prevents a domino effect, safeguarding other pools from cascading impacts.
This allowed Shezmu to differentiate themselves from others.
• Enhanced capital efficiency
• Greater flexibility to take on leverage for their assets
One-of-a-kind Tokenomics
Shezmu has crafted unique tokenomics to balance incentives, sustainability and stability. They have $SHEZMU token while their NFTs are key to understanding this model.
$SHEZMU token has a zero buy tax and 6% sell tax. The tax funds liquidity, USDC rewards for holders and a stability fund. This smartly rewards holding while funding growth.
Guardian NFTs holders receive a portion of the SHEZMU tax allocated to the stability fund.
🔷 Conclusion 🔷
The young platform already shows immense promise to evolve lending and unlock wider mainstream crypto adoption. With continued community development and clever token engineering, Shezmu offers exciting utility in a rapidly emerging niche.
Twitter: https://twitter.com/arndxt_xo/status/1743245155988345136