Value Proposition

WrapFi Target Market Size

As we mentioned above, IBT assets are divided into four categories, so the market size of IBTs can be estimated by calculating the size of each market, and the summed up amount is about 40 billion USD:

1.PoS Staking Derivatives Market. The total value of Staking assets according to StakingRewards in April 2021 is $160,297,302,844, and the total value of Staked ETH in ETH2.0 is 8,195,593,852 (total amount is 3,787,243). Assume that Staking Derivatives Accounting for 20% of all staking total assets, the market size of PoS Staking Derivatives is estimated to be approximately 33.7 billion USD.

2.Lending Protocols Market. According to data released by DeFi Pulse, the total lock-up value of the current Lending Protocol is 36.4 Billion USD;

3.Vaults Protocols Market. The strategic revenue aggregator DeFi protocol, such as Yearn, Alpha Homora, Cream, etc., is estimated to be around US$1 billion;

4.Other IBTs. Including all kinds of DEX's LP token and dividend-sharing token like veCRV.etc., the estimated scale is about 2 billion USD.

Based on the above estimation, WrapFi serves approximately US$40 billion of IBT assets. Moreover, the overall market size of IBT assets is still in rapid growth.

WrapFi's Value

As an interest-bearing and tradable token, IBTs are very premium assets in the DeFi protocols like DEX, lending, and index-related DeFi products. The various circulation scenarios of IBTs rely heavily on IBT's secondary market price data, so it is very important to have a stable secondary market pricing system.

WrapFi will be the first and best DEX that focuses on providing better decentralized trading services for IBT assets. The goal of WrapFi products is to provide a DEX with a more customized Price Oracle service, a more stable price mechanism, and better liquidity for all IBT assets:

1.Customized and decentralized Oracle. The current Oracles of DEXes are mainly based on the transaction price under the AMM algorithm, which lacks the primary market price as a reference, so the price gap often exists. To address this problem, WrapFi will deploy a decentralized price oracle script based on the underlying chain and exchange rate computer system issued by each IBT. Random nodes on the StaFi chain will run and provide quotes on the strength of the VRF algorithm. And finally, the service of Price Oracle will be highly customized and decentralized.

2.A more stable pricing mechanism. WrapFi adopts the Proactive Market Maker algorithm namely PMM as the trading price algorithm of IBTs, which can track the IBT primary market exchange rate in real-time, so that the price discovery mechanism on WrapFi can include the fluctuation of the primary one.

3.Better liquidity. WrapFi will attract IBT holders and LP market makers with lower commissions, liquidity farming incentives, and better price discovery mechanisms. It will become the best DEX with the best liquidity for IBTs.