"This tokenomic model marries the explosive growth of NFTs with the superior monetization capabilities of DeFi." wax.io
After recently making the move to participate in WAX DEFI rather than just hodl WAX I wanted to share the reasons for my belief that WAX could be one of the best NFT DEFI plays of the decade.
1. The WAX DEFI fee collection and distribution model make sense
Unlike a lot of other defi models that encourage early participation by offering unsustainable rewards or taking excess fees to entice early participation the WAX defi model builds value from economic activity (marketplace fees). This is already proving to be a very low friction and sustainable model for accruing value, just like how other major asset exchanges like Amazon, Ebay and cryptocurrency exchanges accrue value for themselves, WAX does it for the hodlers 🙌.
2. The NFT outlook for WAX keeps growing
Like an unstoppable force nfts are taking over the internet and even bridging the gap to the physical world. WAX has been growing organically ever since the Atomic Assets nft standard launched, add to that WAX's ability to bring big household name brands to the blockchain and it's OG digital asset trading team and you've got a recipe for big future potential. Whether it's the origins with GPK and William Shatner, the exploding games scene on WAX with Alien Worlds, Uplift World, KOGS, Rplanet etc. or the bigger known brands like MLB, FUNKO (who next LEGO??) and the ability of WAX to keep innovating with things like physically backed VIRL nfts the outlook for WAX has never been better.
3. The current APR% is averaging ~70%
Even at such an early stage in it's life the current APR% for participating in WAX DEFI is averaging over 70%. As more people stake WAX to earn the rewards this could come down but more than likely given the upward WAX blockchain trajectory and barriers to entry (requiring an equal amount of ETH to stake and also multi step process to participate) the APR% will remain fairly high and if just a few more large projects launch it could go a lot higher.
4. WAXG is the real bet on the outlook of WAX
Once you believe in WAX and where it is headed you can start to see how WAXG, a token which is earned by staking ETH and WAXE, could be one of the most underrated DEFI coins in the market currently. This token accrues a percentage (initially 50%) of the economic activity fee on WAX in the form of ETH which gets sent to a Piggy Bank from which WAXG Token holders can burn their tokens at any time to receive their relative share of the Piggy Bank ETH. WAXG holders can also choose to hold these tokens and participate in governance for WAX DEFI while the tokens keep accruing value a third option is if they wanted they could sell WAXG on uniswap but liquidity is currently too small to support big trades. As per the reasons above this ETH pool could quickly grow with just a few large partners or games (or even just ETH price appreciation) and the outlook for WAXG will increase very quickly. Read more here: https://github.com/worldwide-asset-exchange/defi
5. Ethereum is on the same trajectory as WAX
Ethereum is a giant now and a concern of some WAX token holders looking at DEFI was whether the growth of ETH could keep up with WAX. DEFI participants are required to stake an equal amount of WAX and ETH and that also puts users at risk of impermanent loss. I think Ethereum has shown recently that not only does it have a huge NFT and DEFI game but it has the ability to keep up with the much lower market cap of WAX in a bull market and with ETH 2.0 surely coming in the next year or so it may keep moving relative to WAX therefore keeping the pool balanced.
Here are a few handy links to learn more about WAX DEFI: