Recently, I wrote a project research report on OctoFi. A decentralized finance protocol that uses oracles tentacles to aggregate thousands of opportunities from all sorts of of decentralized finance protocols and platforms.
If you’re interested in the project, then I highly recommend you to read the report here: What is the best DeFi project out there? Why should I invest in it?
In that post, I mainly focused on the platform, rather than their own token ‘OCTO’. I briefly highlighted the token and mentioned I believed it was a good price to start buying OCTO upon ($45).
Two weeks later, OCTO is now trading at $104, while still only trading at a $40M market cap.
These are very nice short-term returns. However, my focus is on the long-term, and I truly believe OctoFi can see significant adoption from DeFi users and investors.
I’ve frequently been asked what OCTO can be used for, why it has value and what I believe is the long-term picture for the OctoFi ecosystem. Therefore, I’m writing this post to dive deeper into the OCTO token.
What is the OCTO Token used for?
OCTO is used throughout the whole OctoFi ecosystem and currently counts over 3,750 unique token holders.
As OctoFi is fully decentralized:
- OCTO is the governance utility token, enabling token holders to create and vote on proposals that decide the future of the platform.
- OCTO is also used to unlock exclusive (platform) features, and maybe the most interesting use case of them all for speculators is:
- ALL fees generated by the platform are distributed among all token holders!
This is incredibly interesting for those who believe OctoFi has what it takes to grow to a mass adopted platform. As usage grows, so do the total generated fees!
Personally, I strongly believe in the future of OctoFi, as I expressed in my previous post. I therefore am excited to see the community decided to open up OCTO + ETH liquidity providing rewards, next to the existing OCTO + USDC liquidity providing rewards.
This was recently announced. I therefore am planning on providing liquidity in OCTO + ETH to stake the LP tokens and earn even more rewards on top of the platform distribution fees and price growth I hope to see. Farming starts February 18th, 8:08AM UTC.
Tokenomics
OCTO is an ERC-20 token that has been audited (https://audits.octo.fi/) by multiple parties, during multiple phases. This increases trust in an anonymous team, that has provided more transparency than I’ve seen many centralized projects do.
Tokens were sold during a bonding curve (https://den.octo.fi/d/46-transparency-report-002) mid/late 2020 between $0.18-1.08. This means early contributors have seen significant returns so far. The current market cap is around $40,000,000.
Conclusion
Initially, the bonding curve price scared me to purchase OCTO at current price levels. As I was afraid to be so called… dumped upon. However, I’m also aware most of these early contributors have most likely already taken profits. As well as, the project/product changed significantly to better fit the markets needs.
The new approach of building a one-in-all DeFi platform attracts me a lot, versus the earlier anticipated oracle. This shows the team takes into account industry changes/needs, is agile and clever enough to build all these things. And, on top of that they’re doing this at a quality and speed level I have rarely experienced before.
This has given me the confidence I was looking for to become a long-term OCTO holder and platform user. And I’m looking forward to seeing what developments the team and community comes up with over the course of 2021. Comparing the $40M market cap, to other platforms shown on DeFiPulse (https://defipulse.com/) tells me how early we still are.
Similar to BADGER, BAKE and SPARTA, which I’ve shared on my social channels and on Quora multiple times.
I simply highlight and summarize the information available on the OctoFi website. If you have any questions, comments, feedback, you are welcome to ask them in the comments. Or, simply join their community channel (https://t.me/OctoFi) on Telegram. There’s plenty of helpful community members.
I am not affiliated with the OctoFi team. I am simply an enthusiast and contribute where possible to provide community members and my followers information that’s easy to understand. I do hold OCTO, I am not intending to change my position over the course of the next 24-hours. Unless the price drops, where I intend to dollar-cost average my position
