Today I want to introduce you to one of my favorite DeFi projects right now: SCIFI Finance. I stumbled across the project at the start of December while hunting for interesting DeFi projects that I thought could have a bright future in the event that BTC and ETH's bull run would extend themselves into "Alts". Once you go down that research rabbit hole, ones head might explode trying to keep track of all of the new projects, the tokenomics, and the potential use cases for them. In the back of my mind, I was wishing that someone would create an ETF with a decentralized organization that could help curate a good back and give exposure to some of the best projects... That's when I found SCIFI.
The SCIFI Mission is to create an index basket of "gems" that have long term growth prospects and solid fundamentals. There is a Galactic Council, which is an expert team of curators and crypto-analysts who make the decisions on the contents of the index. Those people are elected to the council by vote on the DAO. This functions similar to the Witnesses here on HIVE, where a number of them are voted on by HP stakers. In the case of SCIFI, these votes are done by SPICE holders. SPICE is the governance token of the SCIFI Index. In the case of SPICE, there is a fixed supply of 42million SPICE (2.3million have been burned as leftovers from public sale) that is mainly distributed as a reward to SCIFI holders (Space drops they call them) within the first year of the project launch and to Liquidity providers on Uniswap. Network snapshots will be taken on a weekly basis in order to define who receives which allocation and nothing needs to be claimed.
While the idea behind the SPICE DAO is not particularly new, the SCIFI Index contract is truly innovative. First, the Council chooses the contents for the Index and the weighted balance. For example, SPICE will always make up 2.5% of the Index, while other tokens might have a far larger exposure. These percentages are agreed upon each month and then each week the Index is rebalanced based on performance. In order to get your hands on 1 $SCIFI you have two choices: either buy from Uniswap or mint them yourself. To mint yourself, you would need to hold the necessary amounts of each of the tokens in the basket and then execute the Contract to mint 1 SCIFI. Conversely, SCIFI can be redeemed for the underlying assets at any time as per the same contract. This is in part what drives the value of the index, because as the basket performs, you can buy SCIFI from the open market and redeem for the individual tokens in the event that the NAV of SCIFI has not caught up with the valuation of the assets. A real-time index chart for tracking performance can be viewed through the SCIFI Website Here.
The tokenomics of the SCIFI Mission were enough to interest me right away, but it is the strength of the community and the organization of the mission control that has made me a believer. Since the Public Sale of SPICE on December 16th, there has been a steady diet of information and transparency. We have already had three DAO votes (Two are currently in their voting period still) and have seen significant increases in the value of the index. Over the past week the SPICE DAO has exploded as well, rising by more than 300% from the ATL just a week ago, driven by a coordinated marketing effort that began with prominent YouTubers speaking about the project. This appears to be only the tip of the iceberg. The distributions have all happened timely as listed, and thus far we haven't seen any major hiccups or breaks in the roadmap. The telegram group is filled with an active community who are clearly there because they believe in the strength of the project.
Here are some charts with performance data relative to other assets:
It goes without saying that I'm not here to give anyone financial advice. I only want to present a project that I believe will have huge growth potential and the organization and use case to survive the DeFi madness. See for yourself and research the SCIFI Mission and the SPICE DAO through the following links:
Website: https://scifi.finance/
Telegram Group: https://t.me/scifinance
DARKPAPER: Read the Darkpaper