Authorized release by Blockchain Lao Li
Click to read the Scientix interpretation series authorized by Lao Li
- 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
- Scientix (IV): Comparison between Scientix and Alchemix
- Scientix (V): The price of SCIX
On 09/28, SCIX held a round of public auctions for the purpose of the development of the project (a DEFI project is very expensive now, e.g., an audit costs tens of thousands). 15,000 SCIX, which was calculated as 14% of the tokens owned by the foundation, was sold by the auction.
The market price of SCIX on the day of the public auction was around $21. In the end, the price of this 15,000 SCIX was sold at the lowest price of $10, which means that the team gained more than $150,000 for operating expenses, and finally had a budget for marketing. The 15,000 SCIX will be linearly released within 3 months.
This is a win for the buyers. Hahaha, why? Assuming that the team did the auction when the price of SCIX is higher than $500, and set the lowest price at $150–200, then there will be many buyers rushing in. But the project team did not do this and insisted on waiting for the SCIX price to stabilize before the auction. It can only be said that the team still hopes to make a long-term project and does not want to be disgusted by the community.
Well, look at the data. As of September 30th in 2021, the price of SCIX has finally fallen below $20, and TVL has reached $50.73 million. Although it is still in the top 30 on BSC’s TVL, it is relatively low compared with the peak of $200 million.
It is undeniable that the hot money is chasing profit for TVL. Most of the TVL was transferred after one week of a project launch. Alpaca launched a new project on Grazing Range, LatteSwap. Latte is a typical DEX, with a well-known model. When it was newly launched, the yield was higher than Scientix. Then the miners just moved to Latte.
Here are some panic questions: Can Scientix still be strong? Did the team foresee the situation? What measures will the team take to increase TVL and the price in the future? Because Lao Li has written some articles before, he had some communications with the team. Plus Lao Li’s own analysis, here are his points and want to share with everyone:
This time, BTC can rush to $64000 in the market. It seems that it was caused by Mask, but the actual reason is the development of DEFI, which shows the use cases of blockchain + smart contracts. The current DEFI is actually a reflection of the real financial circle, and it also has a complete product of lending, mortgage, asset management, insurance, and non-performing assets. According to Lao Li’s prediction: the financial rules of the future world will gradually be replaced by DEFI.
Currently, the development of DEFI has reached a milestone. It is difficult to achieve a dominant position similar to Uniswap, Curve, and Yearn. Then there are only two paths ahead:
Horizontal development: Fork in other chains, such as Solana, Avalanche, etc. Quickly fork and copy the code, and then go live.
Vertical development: dive deep into the subdivision track in DEFI, and be the top three on this track. After all, DEFI has just begun to develop, and the subdivision track needs to be constantly filled. The real-world financial circle also needs a subdivision organization to assist the players on the main track.
Scientix is taking the vertical development path and regards itself as a link in the DEFI Lego game. Don’t look down upon this track, if Scientix can become stronger, it can become an asset whale, and link many different DEFI players downstream.
Lao Li is an advocate of vertical development. Horizontal development requires a certain amount of resources and networks, e.g., you are a good friend with SBF so Solana can 100% support you. But this kind of resource is rare, and not for general investors.
Besides, there have been too many DEFI projects with the same function on various chains. Like SWAP DEXs, Lao Li can’t tell what’s the uniqueness of their future development. Do they want to become Uniswap and Pancakeswap? Then take out your specialties.
Although Scientix only has a single function, it is the most powerful one in its one track on BSC. We can give it some time to shine and become the №1 in the industry.
Back to the three questions mentioned above:
Scientix has been falling and falling. The team had anticipated such a situation, so they tried their best to save the money at the beginning of the project launch. The value of the project will be reflected in the continuous improvement by the team. Currently, the team’s strategy is to implement the roadmap and insist on long-term strategy.
The weak part is the marketing. The team seems to have had no marketing experience and did not promote the project well at the peak of TVL effectively. This was a bug in the past two weeks, and it will be improved after the public auction.
Lao Li’s opinion for this is that, let’s wait for the next half year’s development first. There are two points worth paying attention to:
1. How much TVL can be added when SCUSD-BUSD is listed on Alpaca. The stability of SCUSD is quite good. The current volume was about $11 million, and it did not fall below $0.993. This is a better situation than the WUSD’s $0.93–1.01, which was newly launched in the last month.
2. Whether SCBNB or SCBTC will go live. This will be a significant step for Scientix. Stablecoin staking is easy, and USDT is so flowy that it moves too quickly. So it will be extremely important to attract BTC or ETH.
However, there is one point that Lao Li felt confused, that is, how to increase the project’s APY, since 10% of the yield farming is used to increase the price of SCIX. Currently, Alpaca added this part of BUSD into the pool for farming. But is it possible to do more active management? After all, there are many high APY projects on Alpaca. Welcome to have a discussion on this.
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
