Scientix (I): What exactly does Scientix, the project backed by Alpaca do?
Authorized release by Blockchain Lao Li
Scientix Finance (called Einstein in Chinese) was launched on Sep 13th, and it obtained a lock-up of about 200 million in two days. Lots of rumors came up in various communities: The APY is over 10000%, the cost will be back in three days, etc. Of course, the most eye-catching news is: the supporter and collaborator behind Scientix Finance is Alpaca, the third-ranked TVL project on the BSC chain.
Let’s take a look at how Alpaca supported Scientix:
First, the current voting mechanism is a multisig comprising the Scientix Finance team with 2 votes, 1 vote for an external consultant, and 2 votes for Alpaca, which requires 80% approval, which means that the Alpaca has the ability to veto.
Second, the treasury is completely managed by Alpaca, and the income is used to repay the income of Scientix Finance investors.
Third, in order to divert Alpaca investors to support Scientix, Scientix specifically reserved 5% of the token allocation only to Alpaca investors.
It is estimated that Scientix Finance’s token SCIX and stable currency scUSD will soon be listed in Alpaca’s pool.
Seeing this, you may think that this is the rare true love in crypto!
After the gossip is over the ambiguous relationship between Alpaca and Scientix, we enter the topic, from the perspective of investors, what can Scientix do? It’s somehow difficult to find relevant articles and videos on YouTube and Google, since what it does is a subdivide market in Defi.
My understanding is: From an investor’s point of view, it allows you to use the borrowed BUSD to mine to earn income, while at the same time automatically reducing your debt principal, killing two birds with one stone, so Scientix is especially suitable for those investors who do not have time to operate every day, and for the institutional fund’s pursuit of stability.
For example, if Allen has collateralized 1000 BUSD in Scientix, it can borrow 500 scUSD, which is Scientix’s stablecoin. Now Allen can use 500 scUSD to do two things, one is to add LP to mine BUSD, with an about 30% APY (the first week of mining). The other is he can convert 500 scUSD to 500 BUSD, and take it away to do anything he wants, such as buy BNB or BTC.
Okay, after a period of time, Allen with a debt of 500 scUSD found that his debt was only 250 scUSD, which made him happy. He didn’t do anything. 500 scUSD is still mining in the pool for high returns. How does this happen? It turns out that the 1000 BUSD collateralized by Allen was put into the vault by Alpaca for investment, and the rewards generated were used to pay off Allen’s remaining debt regularly.
Two years have passed. Scientix informed Allen that your debt has been paid off and you can redeem the deposit of 1000 BUSD. In total, Allen has earned 400 BUSD mining rewards in the past two years. Allen got back a total of 1400 BUSD.
Eva, the wife of Allen, scratched her head and said: We use the 1000 BUSD directly on Pancakeswap and add a stablecoin pair liquidity, isn’t that better? Allen replied: What do you know? Not to mention that the APY of stablecoin LP on Pancake is less than 10%, but I need to spend my money and my effort to making money to repay the 500 BUSD debt. It is better to hand it over to Alpaca for management, and the reward is automatically used to repay the debt. We are so relieved, and unlike other borrowing platforms, there is no risk of liquidation.
The story of Allen is over. Now you can understand what Scientix can help investors do.
Let me add one more point. If Allen understands the matryoshka mechanism, he can even get back about 1900 BUSD, which is 900 BUSD more than the original 1000 BUSD. Isn’t that amazing?
How did he achieve it? The matryoshka mechanism is that you use the borrowed 500 scBUSD to change it into 500 BUSD in Scientix, and collateralized it again, and then borrowed out 250 scUSD, and so on. In this way, you can totally get about 1900 BUSD of funds, so when the debt is repaid, Allen can get almost twice of his deposits back. There is also the same mechanism that exists in real life, such as cashing out a dozen credit cards, but those have high costs, while there are no interest costs at Scientix.
But still, some people may still be confused, Alpaca is brilliant enough at BSC, and why it wants to support a new project like Scientix? In the next article, let’s take a closer look at how important Scientix is in the strategic layout of Alpaca.
The author solemnly reaffirms: As of the time of publication, the author has an interest relationship with the project mentioned in the article, and hereby informs it. Interests include but are not limited to the following situations: I am a member of the project team, I am an immediate family member or spouse of a member of the project team, participate in the investment in the project, hold the shares or tokens issued by the project, participate in short or long the project, collect rewards for paid writing, etc.
But still, some people may still confused, Alpaca is brilliant enough at BSC, and why it wants to support a new project like Scientix? In the next article, let’s take a closer look at how important Scientix is in the strategic layout of Alpaca.
The author solemnly reaffirms: As of the time of publication, the author has an interest relationship with the project mentioned in the article, and hereby informs it. Interests include but are not limited to the following situations: I am a member of the project team, I am an immediate family member or spouse of a member of the project team, participate in the investment in the project, hold the shares or tokens issued by the project, participate in short or long the project, collect rewards for paid writing, etc.
About Scientix
Website: https://scientix.finance
Gitbook: https://docs.scientix.finance/
Twitter: https://twitter.com/ScientixFinance
Medium: https://scientix.medium.com/
Telegram: https://t.me/scientixfi
Discord: https://discord.gg/fRZpVQYFmf
