New Protocol Launch - Innovation Zone (13th-19th March 2023)

As discussed, we are spinning off our daily alpha aggregator into 3 weekly issues covering Crypto funding news, New protocol launches and Innovation Zone projects that are transforming the crypto space.

The Innovation Zone is meant to drive visibility and drive awareness towards projects that are challenging the boundaries of innovation and reimaging the current order of business.

(Note: Although our team has thoroughly researched the protocols; we don’t owe any responsibility towards any sort of failure that the project/team might face. You are always requested to do due diligence!)

TapiocaDAO

Frustrated from having to move your funds from one L1 to another just to take advantage of the Alpha you just read? Fret not, TapiocaDAO is here to solve the problem.

TapiocaDAO is the first ever omnichain money market, which is powered by LayerZero that currently connects over 20 EVM & Non-EVM blockchains.

Omnichain composability creates a completely novel open financial layer that empowers DeFi users on dozens of networks. Tapioca utilizes the LayerZero generalized messaging network as its omnichain infrastructure which offers seamless interoperability and composability across dozens of disparate networks. Tapioca streamlines the currently disjointed DeFi user experience, and offers users previously inaccessible levels of capital efficiency through liquidity defragmentation.

There are 4 tokens in the Tapioca ecosystem:

• USDØ is the first decentralized, non-algorithmic, over-collateralized, and censorship resistant US dollar-pegged omnichain stablecoin to conquer the stablecoin trilemma of price stability, censorship resistance, and composability. By utilizing the LayerZero Omnichain Fungible Token (OFT) super-standard, USDO can be seamlessly transported across many chains without a bridge- eliminating slippage, wait times, and fees.

• TAP acts as the backbone of the protocol. TAP can be compared to Curve’s CRV in that its true power (and juicy yields) are not unleashed till locked. TAP is not emitted at all – no liquidity mining, rewards, nothing. Therefore, TAP will have very strong value retention with this entirely new innovative token economy that requires everyone to buy in – TAP is never issued for free.

• twTAP is an innovative escrowed token model which utilises Tapioca’s Time Weighted Average Magnitude Lock (twAML) system and is an omnichain NFT which means, it’s transferable! The best way to explain twTAP is if users controlled the value of time with veCRV, while twTAP also doesn’t decay over the course of the lock like veCRV.

• oTAP is an Omnichain NFT that lenders receive each week after locking their lent capital for a period of time. oTAP is simply an American call option on TAP, or the right (but not an obligation) to purchase TAP below its market value.

Alpha 

• $oTAP is an airdrop for early participants, POAP collectors and early buyers of the $TAP token at the TGE which will be a Liquidity Bootstrap Pool (LBP expected March 23rd).

• $oTAP is an option to purchase $TAP at a discount to the current spot price.

• Testnet Beta starts 1st March. Take part in Testnet and try to get Pearl club roles by attending TAP talks.

Read the excellent blog where the blocmates team deciphers TapiocaDAO:

Sector Finance

DeFi offers real yield generating opportunities through yield aggregators, lending protocols, LP’ing etc which comes with immense risk.

To retain the institutional and retail folks and turn them into crypto natives, we need products that offer yield earning opportunities with adjusted risk appetite. Not only that but there needs to be more transparency around the types of risk as well as their severity. Introducing Sector Finance, an application that builds risk-adjusted structured products for DeFi users.

While the protocol is divided into 3 separate categories, the main investment product is the risk-tranched vaults. In simpler terms, what this means is that Sector offers yield-generating vaults which are segregated based on their degree of risk, and the risks involved are transparently expressed to the prospective investor.

Sector offers 3 core products which are:

• Risk engine also known as the Galileo Engine is at the heart of the protocol. Every investment product is powered by this risk engine which quantifies the probability of Smart contract risk, Asset Risk, Liquidations and Strategy Risk. The Galileo Engine tackles this by assessing DeFi risks similar to how insurance companies would assess insurance premiums for catastrophic events. They do this by estimating probabilities and associated losses with such events to come up with a risk probability score.

• Single-strategy investments vaults are the strategies in the aggregator vaults that are made available individually for users to directly deposit into. It is still the same one-click execution and passive yield generation but rather than the capital being dispersed into many strategies it is concentrated in one strategy.These vaults are safe from flash loan manipulation and provide user-defined slippage protection. Additionally, they provide protection from sandwich attacks.

• Aggregator vaults aggregate single strategies into different risk-tranched vaults. Strategies are aggregated into vaults which are either junior tranche (higher risk) or senior tranche (lower risk).The flow of the aggregator vaults works a bit like this. A user deposits the underlying assets in a vault according to their risk appetite. The risk engine then determines the highest-yielding strategy for each tranche and automatically deploys capital to those strategies.

Sector Public Launch

Sector has amassed 3.5M in TVL since its launch that happened a month back.

The public launch will begin on Wednesday March 30 2023 at 1:00 PM EST and end on Friday March 31 2023 at 1:00PM EST. The launch will be hosted on Camelot DEX on Arbitrum.

• Launch Model: Fair launch price discovery model

• Min Total Commitment: 1.5M $USDC

• Max Total Commitment: 4.0M $USDC

• Where: Camelot DEX

• Whitelist Start: Tuesday 29 March 2023 at 1:00 PM EST

• Public Start: Wednesday 30 March 2023 at 1:00 PM EST

• Until: Friday 31 March 2023 at 1:00 PM EST

• Chain: Arbitrum

• Accepted payment: $USDC

• Allocation: 10,000,000 $SECT (10% of total supply)

• Total max supply: 100,000,000 $SECT

• Min/max allocation: none

• Vesting: ⅓ in veTokens staked for 3 months

Alpha

In celebration of public launch, Sector is offering 2.0% of total $SECT supply for Incentivized Vault Offering (“IVO”).

Early depositors in Sector Vaults will earn a share of $veSECT and $bSECT from the Incentive Pool alongside the real-yield accrued in USDC/ETH that’s generated from the Vault strategy.

These are 2 really innovative projects that have major upcoming catalysts. We will over 3 new protocols that are at the bleeding edge of DeFi next week. If you liked our research and wish to receive similar updates, subscribe to our newsletter.