Authorized release by Blockchain Lao Li
Lao Li Scientix series:
- Scientix (I): What exactly does Scientix, the project backed by Alpaca do?
- Scientix (II): Why does Alpaca prefer Scientix?
- Scientix (III): Successful Case of Scientix Model on Ethereum
As a fork of Alchemix, let’s talk about the differences between Scientix and Alchemix.
1. The Total Supply
In the last article, we mentioned that Alchemix’s token ALCX doesn’t have a hard cap. Here is the original statement on the Alchemix website:
In other words, as a non-CEX Defi, Alchemix actually issued a token without a hard cap, which can only show that AC is absolutely confident with his projects.
Scientix has a hard cap, with a total of 1.313 million SCIX tokens.
2. Token Economics
ALCX distribution:
15%+5%: are given to the foundation DAO for project development, 5% of which are incentives for bug bounty;
16%: for the team and ecosystem;
64%: for mining.
SCIX distribution:
14%: reserved for future strategic expenses;
1%: for the incentives of 5 multi-sig cosigners;
5%: for the in-depth partner Alpaca;
25%: for the team;
55%: mining.
It can be seen that the first three items of SCIX, which is 14%+1%+5%=20%, equals to ALCX’s first item. But SCIX reserved 25% for the team, 9% more than ALCX’s 16%.
Is the SCIX team greedy? Lao Li believes the answer is NO. The reason for this is SCIX has chosen a longer-term model that is consistent with investor interest binding. This will be explained in the third point below.
In addition, it is also clear that Alchemix pre-mined 478,612 ALCX tokens for the foundation usage. However, Scientix has no pre-mining, no pre-sale, no IXO, 100% fair launch.
At the beginning, Scientix mined 2% of the token (about 17,940 SCIX), which is inside of the 14% of the foundation’s expenses, for the purpose of early liquidity support, market expansion, and early team expenses, etc. Lao Li learned from the community that currently only 250 out of 17940 SCIX was used to provide liquidity, and was locked to Wault for six months. The rest of the SCIX has not been used at all, and all usage plans will wait for the community DAO to decide how to use it.
3. The Distribution of Asset Management Yield
Alchemix handed the staked DAI to Yearn for management, and 90% of the generated yield was used to automatically pay off the investors’ debts, and the remaining 10% was distributed to the team ;
Scientix handed over the staked BUSD to Alpaca for management, and 90% of the yield was used to automatically pay off the investors’ debts, and the remaining 10% was distributed to SCIX pool as part of the yield;
Therefore, Lao Li inferred that because the Scientix team did not get this 10% yield, thus there’s a 9% increase in the team-belonged token. As an investor, Lao Li is more supportive of the Scientix plan, which shows that the team is more sincere about doing a long-term job, and binds the interest of investors instead of making money in the intermediate process.
For example, when you invest in a start-up, the management team declares that they will not be paid, but they will get an additional 9% in the proportion of original shares. This shows the team is optimistic about the company’s future. They believe that the long-term 9% equity return is far greater than making money from the current cash flow.
4. Innovation of veSCIX
As mentioned in the third point above, 10% of the staked BUSD yield will go to the SCIX farm pool (we call it veSCIX pool for short) as part of the rewards. SCIX single currency pledge amount. The yield of the SCIX farm pool is based on the proportion of veSCIX holdings.
Alchemix didn’t have the veSCIX mechanism, and this is Scentix’s biggest innovation for now. Lao Li thinks it is a smart design, since the core point is that it links the mechanism of SCUSD generated by staked BUSD with SCIX tokens.
We deduced that the more BUSD investors staked, the higher yield the 10% part will get, the higher yield of staked SCIX, the higher demand for SCIX, and finally the higher price of SCIX will naturally be. To be honest, not only does Alchemix not have this linkage mechanism, but many DEFI projects on the market also don’t have. Most of those tokens are mining to generate rewards and governance rights, but are not connected to their own operational logic.
So this fourth point, in Lao Li’s opinion, is the most shining point of Scientix. Whether a fork project can be better than the original one, depends on whether you have any ideas and practical actions on the shoulders of giants to climb to a higher level.
Another point is that veSCIX can play a role as a stablecoin in the early stage. At least the team considered this when designing. So don’t always mine, withdraw and sell. You can get a good yield if you stake and farm.
In the next article, we will talk about the SCIX price — one of the most important concerns for all users.
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
