Digital currencies are uniquely impacting the existing financial system, while the independent ecosystem of DeFi is bringing hope for inclusive finance.
The DeFi market evolves at a rapid pace, progressing from DeFi 1.0 to the concepts of DeFi 4.0. DeFi 1.0 represents the origin stage of DeFi, primarily introducing a financial system that is borderless, open, transparent, and free from traditional financial intermediaries. During this period, ERC-20 tokens surged globally, with many projects raising funds through ICOs as a prominent method.
A series of technological transformations in DeFi 2.0 addressed the limitations of the previous generation. It made DeFi more user-friendly, secure, and efficient, laying a solid foundation for long-term sustainability. The concepts and tools of DeFi 2.0 have begun to dominate most decentralized finance projects.
DeFi 3.0, currently in progress, represents the third stage of DeFi’s evolution, characterized by more user-friendly protocols and greater integration with the real world. This stage focuses on cross-chain compatibility, seamless experiences of composability, new use cases for DeFi, scalability, and improved performance.
As DeFi 3.0 continues to develop, discussions about DeFi 4.0 have also begun to emerge. The core idea of DeFi 4.0 is to further enhance the current decentralized financial system, particularly through improvements in compliance, user experience, flexible governance mechanisms, and practical application scenarios. This stage may emphasize deep integration with traditional financial systems, real-world assets (RWAs), enhancing scalability, and exploring new financial tools and services.
Many new projects in the crypto space are also exploring the next generation of DeFi, one of which is the recently launched Victory Capital DAO (VC DAO).
VC DAO is a liquidity mining and DeFi aggregator platform, and its governance token, VC DAO, is launched without private sales or pre-mining. Users inject liquidity to receive genesis LP tokens. The platform introduces the concept of computing power through LP tokens, converting staked LP tokens into computational power via an algorithm. Upon the conclusion of the genesis LP phase, it employs a combination of cloud computing purchases, allowing users to earn VC DAO tokens based on their share of computational power and output mechanisms.
VC DAO employs a DAO governance mechanism, enhancing the flexibility and functionality of decentralized autonomous organizations. Through code-based management of specific tasks, dynamic DAO governance can automatically execute proposals based on community votes and predefined standards. This not only improves governance efficiency but also makes the decision-making process more transparent and fair, further promoting the decentralized development of the DeFi ecosystem.
VC DAO is built on a community governance model and relies on distributed ledger and blockchain technology to create a cross-chain financial service ecosystem that integrates decentralized wallets, lending, marketplaces, digital banking, trading, oracle services, and asset management, combining DeFi, DAO, NFT, and cross-chain technologies. By adopting an “on-chain settlement, off-chain transactions” approach, it aims to provide a user-friendly and secure financial system for global users.
The VC DAO platform will also offer various tools to connect traditional finance, establishing a bridge between decentralized digital currency finance and centralized traditional finance. The platform token (VC DAO), serving as the sole value token, is used to incentivize all participants in the ecosystem and promote its autonomy, rewarding VC DAO users through mining and creating value incentives.
Moreover, VC DAO has significant appreciation potential. In the future, profits will automatically flow 100% into VC DAO through smart contracts, and the value of VC DAO will be forged through a token burn mining mechanism. VC DAO holders will have governance rights, allowing them to propose and vote on changes and upgrades within the VC DAO ecosystem.
Four Core Success Points of VC DAO
1.Liquidity Pools: Managed by a consensus from over a hundred communities, these pools provide a solid foundation for price support. Prices have a floor in downturns and limitless potential in upturns.
2.Token Distribution: Tokens are distributed through the community, minimizing the influence of large holders who might impact the liquidity pool. Token holding will automatically adjust based on market order volumes, ensuring safety.
3.Decentralized Automated Market Making: This mechanism ensures fairness and transparency, with market buying and selling adjusting according to economic models, allowing users to take control.
4.Community Engagement: VC DAO promotes synchronous online and offline efforts, fostering a highly consensus-driven community of believers in future value and evangelists with professional DeFi knowledge.
VC DAO’s burning and mining mechanism creates value through deflation, leading to a natural market condition where demand exceeds supply, resulting in rising token prices. The ecosystem aims for a perfect cycle of application, circulation, and destruction.
With the genesis LP of VC DAO about to launch, its commitment to eliminating monopolies and speculation may resonate as a key theme in the DeFi 4.0 era. In the new economic age of Web3, the comprehensive development of the VC DAO ecosystem will undoubtedly provide users with a faster digital ecological experience and invite more members to co-create a bridge of decentralized ecological assets, positioning VC DAO as a universal ticket connecting the DeFi world, linking the blockchain world, and integrating all entities.