DeFi Kingdom, an entrant to the blossoming GameFi sector, is expanding the definition of NFTs by offering its version of the tokens, called Heroes. They are playable characters that go on quests to earn tokens.
In contrast with static NFT, Heroes gain experience through these adventures and can be equipped with gear to increase their efficacy.
DeFi Kingdom (DFK) now ranks second behind Axie Infinity in volume in the last day, week, and 30-day period, according to Dapp Radar. In this context volume means the amount of value flowing into a given decentralized application’s smart contracts, a Dapp Radar representative told The Defiant via Telegram.
The number of wallets interacting with DFK has increased by 161.36% in the last 14 days, too, according to a Dec. 12 report put out by analyst Samichpunch, who puts out a bimonthly update on analytics for the GameFi project.
JEWEL, DFK’s primary medium of exchange, has held up well during the recent sell-off, jumping 9.6% in the last 24 hours and 37.9% in the last 30 days as of Dec 14.
What’s driving the project’s growth and how does it work? Hans Hauge, head of quant strategy at asset management firm, Ikigai, who released a long article on DFK on Dec. 13, thinks the project effectively combines DeFi, NFTs, and metaversal elements to create a real functioning economy.
A “real economy” here means one with multiple functioning parts. The five most prominent of these parts are the JEWEL token, a decentralized exchange (DEX), a place to stake liquidity provider tokens called the Gardens, the Hero NFTs, and an upcoming feature called Kingdoms.
JEWEL is a fungible token that can be used to buy in-game NFTs, staked in something called the Bank where it accrues fees from DFK’s DEX and JEWEL transactions, as well as for voting in governance.
Some folks are nearly all in — a prominent DeFi investor who goes simply by Cole, tweeted on Dec. 9 that his only spot exposure is JEWEL and ETH. The investor, who has 15,000 followers, explained his bullish thesis to The Defiant:
“DeFi Kingdoms fills a unique niche within the metaverse gaming sector, as it enables users to do everyday DeFi activities like staking and farming while also utilizing gamified mechanics like heroes and quests to enhance these activities.”
DFK’s DEX is based on Uniswap’s groundbreaking automated market maker (AMM) model, and allows users to trade any asset on Harmony, not simply assets relevant for gameplay. The DEX has easily beat out Curve and SushiSwap in terms of attracting TVL on Harmony One, according to DeFi Llama.
Across all chains however the DEX ranks No. 34 among its competitors in TVL, as of Dec 14, according to DeFi Llama.
DFK also features the Gardens, where people can lock their liquidity provider (LP) tokens from the DEX and receive rewards in JEWEL.
Read the original post on The Defiant.