When a DeFi staking product is well designed — audited and 100% on-chain — every address can be inspected. This means seeing who bought or sold, whether an address has stakes open, when those stakes expire, what other coins they hold — everything!
It is even possible to see when big stakes are set to expire in the future and plan around them. This new type of on-chain transparency in DeFi improves price discovery, mitigates volatility and promotes overall market clarity.
Running chainalysis on HEX, the First High Interest Blockchain Time Deposit, discovers a surprising amount of whale activity by many of those successful early adopters of today’s largest market cap cryptocurrencies. Here we take a quick peek at a couple Ethereum Genesis wallets buying big blocks of HEX and staking it.
As an aside, it should also be noted there are many Bitcoin wallets with 100’s of BTC (and in some cases even 1,000’s) in single wallets that have been observed on-chain participating in HEX. This article encourages you to do some exploring on your own — you may be very intrigued by what you discover. (See suggested useful resources at bottom.)
Here we see 2 different Ethereum Genesis wallets having 400,440 and 310,000 ETH, respectively, picked up big blocks of HEX (and staked it all):
By Design: HEX Enriches its Staking Class
Once these purchases were made, they leveraged their long positions by utilizing HEX’s most powerful design feature: Staking.
Due to its Shares structure, staked HEX always returns more HEX regardless of the price HEX is trading at. For Example: Staking HEX for 10-years will return approximately 80x HEX. Any underlying price appreciation in HEX itself will further compound the ROI in realized gains upon ending the stake.
It appears the owners of these Genesis wallets have researched HEX and understand its design: Immediately after purchasing they leveraged their positions by staking strategically. The stakes they created capitalize on 2 of HEX’s simple staking design features: Longer Pays Better and Bigger Pays Better. Their stakes are viewable here:
A Robust DeFi Product in a Sea of Defi Projects
DeFi’s first completed product, HEX, has drawn increasing attention throughout 2020, and especially of late, due to its robust on-chain design, high staking yields, and outsized price performance.
A timely reminder from HEX’s inventor, Richard Heart:
Originally published on Medium.
Bay Area resident and journalist offering uncommon insight. Focus: Crypto; DeFi. Donations: 0x2694D3cb852C39d6868ecA71908414eC52BBAE79