Bottlenecks in the Development of the Crypto Market: How to Break Through the User Threshold?

The burgeoning blockchain and cryptocurrency landscape has ushered in a wave of groundbreaking decentralized technologies. However, these innovations have primarily catered to a niche audience of tech-savvy individuals with a deep understanding of the crypto ecosystem. This limited adoption can be attributed to the steep learning curve faced by ordinary users, who must navigate a complex landscape of concepts like wallets, cross-chain bridges, and miner fees.

Centralized exchanges have stepped in as a temporary solution, offering a user-friendly platform for those seeking to explore cryptocurrencies without delving into the technicalities. However, centralized exchanges inherently lack the ability to harness the full potential of decentralized ecosystems and open networks. Their offerings are inevitably restricted to a subset of the vast array of blockchain-based products. In contrast, permissionless protocols empower the rapid deployment of novel meme coins, lending pools, and derivatives, far surpassing the capabilities of any centralized entity. This advantage is further amplified by the network’s inherent growth trajectory.

Infinex: DAPP’s game-breaking work

Poor user experience remains a significant barrier to the widespread adoption of blockchain technology. While current decentralized products and services offer robust functionality, their high barriers to entry have created a substantial chasm between users and products. Many individuals are hesitant to cross this divide. Enter Infinex, a comprehensive DeFi platform founded by Kain Warwick, the creator of @Synthetix_io. Infinex aims to unify the decentralized ecosystem and applications under a single user experience layer specifically designed for Web2-savvy users.

current data

On May 13th, Infinex officially opened its account creation and deposit channels, announcing the distribution of 377 million governance tokens GP to all deposit users within the next 30 days. Currently, Infinex’s total value locked (TVL) across Ethereum, Arbitrum, Base, Solana, Optimism, Polygon, and other networks has surpassed $110 million.

Main innovations and breakthrough points

Infinex’s innovation and breakthroughs are mainly reflected in the following aspects:

1. Enhanced User Experience:

Infinex prioritizes user experience by simplifying operations and adopting mechanisms commonly used in centralized exchanges. Here are some notable features:

• Referral Links and Fee Rebates: Infinex employs referral links and transaction fee rebate mechanisms, similar to those used in centralized exchanges, to incentivize user growth and attract new traders.
• Automated Signature Generation: Each user is provided with a public-private key pair stored in their browser. During transactions, signatures are automatically generated, eliminating the need for complex on-chain interactions.
• Unique Deposit Addresses: Infinex assigns unique deposit addresses to each user, enabling transparent and traceable deposits using USDT, USDC, or sUSD. This enhances security and convenience.

2. Improved Liquidity and Market Attractiveness:

Infinex aims to enhance liquidity and market appeal through several strategies:

• Synthetix Perps V3 Integration: Infinex plans to integrate with Synthetix Perps V3, offering efficient perpetual contract trading services.
• Diverse Collateral Options: Infinex supports multiple collateral types, including SNX, sUSD, and USDC, providing users with greater flexibility.
• Capital Efficiency with Stablecoins: Infinex utilizes stablecoins like USDC to improve capital efficiency and reduce risk for liquidity providers.
• Attractive Returns: Infinex offers competitive returns for liquidity providers. For instance, using USDC as collateral yields a 13.6% annualized return rate at a 110% collateralization ratio, compared to SNX’s 3% at 500%.

3. Cross-Chain Expansion:

Infinex facilitates cross-chain operations, enabling users to trade on multiple blockchains, including Ethereum, Optimism, and Base. This expands the user base, attracting more traders and increasing transaction volume.

4. Enhanced Market Competitiveness:

Infinex directly competes with centralized exchanges (CEXs) by providing a similar user experience while leveraging the benefits of DeFi. Here are some key differentiators:

• CeFi-Like Experience: Infinex offers features like username/password login, multi-factor authentication, and cross-chain deposits, creating a familiar and user-friendly experience akin to centralized platforms.
• Decentralized and Permissionless Liquidity: Despite the CeFi-like experience, Infinex operates on a decentralized and permissionless backend, ensuring transparency and user control over funds.

Decoding Infinex Governance Mechanism: What are GP and Patron NFTs?

1. Governance Points (GP)

GP is a governance point used to reward and incentivize community members within the Infinex ecosystem. Community members can acquire GP through various means, such as:

• Participating in GP Farming
• Actively engaging in community platforms like Discord and Twitter
• Attending governance calls
• Holding designated NFTs (requires registering an Infinex account and depositing at least 50 USDC)
• Submitting and passing proposals

GP primarily serves the following purposes within Infinex’s governance framework:

1. Governance Participation: GP holders have the right to participate in Infinex’s governance voting, including approving and implementing various proposals. This mechanism ensures that community members have a say in the protocol’s future development.
2. Reward Redemption: GP can be redeemed for Patron NFTs, which not only enhance the holder’s status and influence within the community but also provide certain rewards and recognition.
3. Community Incentivization: By distributing GP to reward members who actively participate in community activities, Infinex encourages more users to engage and contribute, fostering the ecosystem’s healthy growth.

2. Airdrop New Opportunities? - Infinex “Speedrun the Waitlist”

Infinex launched its “Speedrun the Waitlist” event on May 13th at 00:00 UTC. Here’s a summary of the event:

1. Account Creation and Deposits:

Starting May 13th at 00:00 UTC, anyone could create an Infinex account and deposit USDC.

2. Governance Points (GP):

• During the 30-day “Speedrun the Waitlist” event, depositors would receive 377 million GP, a portion of the Patron NFT supply, and priority access to future integrations.
• Infinex’s official commitment limits the total GP supply to 600 million (changed to 630 million in the subsequent XIP-26 proposal) and prevents it from becoming a “point scam.”
• GP is primarily used for Infinex governance, and the Infinex Council has allocated 3,000 Patron NFTs to GP holders, redeemable at 200,000 GP per NFT.

3. Event Details:

• The event started on May 14th at 00:00 UTC (24 hours after account opening and deposits).
• Deposits were locked during the event period.
• Early depositors received more GP.
• 377 million GP were linearly distributed to depositors based on the total TVL (Total Value Locked) ratio.

Can GP Bring Potential Benefits to Retail Investors?

First of all, GP is an important review standard for the “ticket” to access the official version of Infinex. According to official disclosures, Infinex has currently received more than 200,000 whitelist applications for access qualifications after its official release. Therefore, it is necessary to use the GP points system to determine which users can be the first to qualify for experience when Infinex releases the first integrated function.

Secondly, will Infinex follow the popular Points-Fi projects currently on the market and launch points exchange or airdrop rewards related to GP?

It should be noted that Infinex mentioned in an article published in September 2023 that “Infinex’s interests will be aligned with Synthetix, so Infinex will not launch its own tokens” and “a large portion of governance rights will be allocated to Synthetix Stakers”.

However, in Infinex’s community governance, the proposal XIP-19 submitted in February 2024 involving allocating more GP to SNX stakers was rejected, which may reflect the direction adjustment of the Infinex community to a certain extent.

In addition, Infinex’s current development and radiation scope has broken through the early positioning of “a new front-end application launched by Synthetix to optimize user experience” and is increasingly growing in the broader Web3 multi-chain ecosystem outside of Synthetix.

What is worth thinking about is that it can be seen from Infinex’s governance framework that GP is the core part of its incentives. So if Infinex does not issue coins, how will the points eventually become a real economy in the hands of users? What about rewards?

At present, Infinex is constantly improving and updating the supply and distribution of GP. At the same time, it is also opening wider channels and carrying out richer points incentive activities to continue to stimulate users’ expanding imagination and expectations about GP. But - save GP, and then Woolen cloth?

Whether it is to launch its own governance token or to use other economic incentives to fulfill the expectations of GP for users, Infinex has yet to submit a more complete and reasonable answer to users. Therefore, the actual value and potential of GP have yet to be further verified.

In Conclusion

The launch of Infinex aims to solve the bottlenecks of various decentralized applications in the current encryption market by improving user experience, enhancing liquidity and market appeal, achieving cross-chain expansion, and enhancing market competitiveness. Infinex has demonstrated its innovation and breakthroughs by simplifying user operations, introducing multiple collaterals and stablecoins, supporting multi-chain operations, and providing a user experience similar to that of a centralized exchange.

However, Infinex’s success also requires verification of the effectiveness of its governance mechanisms and incentives, especially the actual economic returns of Governance Points (GP) and Patron NFTs. Although the GP points system provides users with the opportunity to participate in governance and obtain rewards, its actual value and potential still require further observation and verification. Whether Infinex can submit a complete and reasonable answer sheet for users will determine its long-term competitiveness and development prospects in the field of decentralized finance.

GP current allocation situation

GP’s expected future allocation

What is Patron NFT?

Patron NFT is a non-fungible token that represents contributor status in Infinex.Each Patron NFT can be obtained by burning 200,000 GP, and minting fees will be allocated to the Infinex Treasury to cover expenses such as operating expenses, growth and market incentives, and contributor alignment. This design aims to recognize those members who have made significant contributions to the Infinex ecosystem. The role of Patron NFT in the Infinex governance framework includes:

1. Symbolic contributor status: Users holding Patron NFT are regarded as sponsors of Infinex, and this recognition helps enhance their reputation and influence in the community.

2. Participation Incentive Program: Patron NFT can be used as an incentive to reward members who make non-financial contributions to the Infinex protocol, further promoting active participation in the community.

3. Participation in governance: Although Patron NFT itself does not confer direct governance rights, its holders have a high reputation in the community, and this influence can indirectly affect community decision-making and governance.

Through GP and Patron NFT, Infinex has built a decentralized, transparent and effective governance framework that encourages community members to actively participate and contribute to the development of the ecosystem.

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