Unveiling FlokiFi: The Next Evolution in Decentralized Finance Solutions
For a very long time, the Floki community has been very excited about a mysterious utility protocol we’ve been building for quite a while now: “Project L”.
This update tells you exactly what Project L is, but first we need to talk about FlokiFi.
What is FlokiFi?
FlokiFi is the umbrella name for a suite of decentralized finance products that will be launching under the Floki brand.
FlokiFi is short for “Floki Finance”. It is the perfect way we can think of to describe a series of utility products we will be launching that will make “FlokiFi” an ecosystem itself within the wider Floki Ecosytem.
The first utility product that will be launching under the FlokiFi umbrella is the much anticipated Project L protocol.
What is Project L?
The DeFi industry currently has a Total Value Locked (TVL) of $90 billion according to DeFi statistics portal DeFiLlama. At the peak of the bull market, this number was reported to be $251.56 billion.
The interesting thing is that this number does not fully capture the actual value in the DeFi industry — it only captures a VERY limited portion.
When you add the countless new tokens and protocols launched every day as well as the value being created in the NFT industry actual DeFi TVL would be MUCH higher: according to Token Sniffer more than 1.64 million tokens have been created across the top blockchains, and thousands of new tokens are created every month.
That’s A LOT of value, obviously, which makes it unsurprising that the DeFi industry is plagued with thefts, rug pulls, and schemes in which people are made to lose their money.
This is where Project L comes in.
Project L is the codename for the FlokiFi Locker, which is an innovative digital asset locker solution that allows people to lock and vest fungible tokens (ERC-20/BEP-20 tokens like FLOKI), Liquidity Pool (LP) tokens, NFTs, and Multi tokens.
The FlokiFi Locker is by far the most superior and most innovative crypto locker solution in the market today.
Besides allowing users to easily lock and vest LP tokens and normal fungible tokens, here are other key features that set the FlokiFi Locker apart compared to other solutions in the industry:
- Lock NFTs. This includes an innovative “batch lock” feature that allows users to lock multiple NFTs in a single transaction.
- Lock and vest tokens for an almost infinite period of time through the UI. Competitors tend to limit the period of time users are allowed to lock their tokens to a couple hundred years, which is why the Floki LP tokens were locked for just 265 years (the maximum period possible with the solution we used).
The FlokiFi Locker lets users lock tokens for a practically infinite period of time; you can lock for 420 years (for the culture!) or for tens of thousands of years (or much longer!) just to make a statement that your LP tokens will be inaccessible for as long as humans can live.
- FlokiFi Locker is the FIRST and ONLY token locker protocol to implement the ERC-1155 multi-token standard.
- The ERC-1155 standard allows you to have different types of assets — both fungible (ERC-20) and non fungible (ERC-721) — with different quantities in a single contract. This is something that can be pretty game-changing for blockchain games and other protocols.
This is innovation right here!
We will be releasing a separate article soon talking about the possibilities with this feature and how innovative and game-changing it is.
- Lock multiple assets in a single transaction: FlokiFi Locker makes it possible for users to lock multiple different assets/asset types in a single transaction. It is also currently the first and only locker protocol that can do this.
- The FlokiFi Locker supports more EVM compatible blockchains than other locker solutions in the market right now. This includes major blockchains like ETH, BSC, Polygon, Fantom, KCC, OKXChain, and lots more.
Just how big is the FlokiFi Locker for the FLOKI token and the Floki Ecosystem? Let’s take a look at the tokenomics and fees…
FlokiFi Locker Tokenomics and Transaction Fees
Besides being more innovative than practically every other digital asset locker solution in the market today, the FlokiFi Locker also has more competitive transaction fees.
Here’s a breakdown of the transactions fees for the FlokiFi locker:
- Fixed fee to lock a token: 50 USDT per transaction.
- Fixed fee to lock an NFT: 100 USDT per transaction.
- Fixed fee to lock a multi-token (ERC-1155): 100 USDT per transaction.
- Fixed fee to vest a token or multi-token: 100 USDT per transaction.
- Fixed fee to lock/vest LP tokens: 0.5% of LP value.
The role of the FLOKI token…
While users will be able to pay FlokiFi Locker transaction fees with USDT initially (and eventually any cryptocurrency), the protocol will be inherently powered by FLOKI tokens: specifically, 25% of the transaction fee automatically does a transactional buy and burn of FLOKI tokens — making the FLOKI token perpetually deflationary. The remaining 75% goes to the Floki treasury.
For example, assuming a project with $1 million in liquidity locks its LP tokens with the FlokiFi Locker, a 0.5% fee is charged: that’s $5,000 for that one transaction! 25 percent of that is used for an automatic transactional buy and burn of FLOKI tokens to “power” the protocol while the rest goes to the treasury.
This quickly adds up!
This utility-based tokenomic structure of the FlokiFi Locker has two major advantages:
1. The FlokiFi Locker’s utility-focused, transactional buy and burn mechanism makes the FLOKI token perpetually deflationary. It also creates perpetual demand/buy pressure for the FLOKI token, further establishing it as a utility token.
2. The FlokiFi Locker’s transactional “refilling” of the Floki treasury (75% of transaction fees goes to the Treasury wallet) indicates a key step we’re taking towards ensuring industry dominance: the beginning of a focus on utility-based revenue generation that leads to the eventual complete removal of the 3% transaction tax and gives Floki a strong, competitive advantage in the industry.
While Floki is fundamentally stronger than our bigger competitors in the industry, we know it is difficult to compete against them with a transaction tax. This limits the ability of “big money” to flow in and out so to speak; many people also avoid buying tokens with a transaction tax.
The release of the FlokiFi Locker protocol, which automatically sends a portion of all transaction fees to the Floki treasury, is the first of many similar moves we will be making to ensure a solid inflow of revenue as we race to completely remove the 3% buy/sell tax.
Just How Big is the FlokiFi Locker for Floki? (a look at some numbers)
As you can see, the FlokiFi Locker is a humble protocol as we’ve communicated and just a small part of the wider FlokiFi ecosystem that we’re building within the bigger Floki Ecosystem.
However, just how big can the FlokiFi Locker be for FLOKI?
Let’s take a look at some numbers from two of our biggest competitors in this space:
- Unicrypt boasts a TVL of $288 million+ from 14,000+ projects that have used their protocol.
- Team Finance boasts a much bigger TVL of $2.2 billion for tokens and $112.3 million for liquidity. Their protocol has been used by 31,500+ projects.
Floki has stronger brand and better industry positioning than both.
With Floki’s strong brand and industry positioning as well as impressive marketing and growth machinery, we expect the FlokiFi Locker to have much stronger adoption than both of these solutions and to be the dominant player in the industry in the near future.
You only have to do the math based on the above numbers to realize how much in additional funding this means for the Floki treasury and making the Floki token truly deflationary via a transaction-based utility focus. It also significantly increases the chances of Floki dropping its 3% transaction tax for a strong competitive edge in the industry.
Launching With a Bang: Key Industry Partnerships to be Announced
Besides the enormous developer effort that has gone into developing the FlokiFi Locker protocol, we would also like to make it clear that we’ve done a lot of legwork when it comes to getting key industry leaders to acknowledge the protocol.
FlokiFi Locker integrates and is partnered with industry leaders that include Chainlink, OKX Chain, Kucoin Community Chain, some of the industry’s biggest DEXs, and many others. These partners will be making their own announcements soon in coordination with us.
FlokiFi Locker is also being audited by industry security leader Certik, a Floki partner. This shows it is a strong and reliable protocol.
Several T1 CEXs we’re in active discussion with are also excited about the launch of the innovative protocol that is the FlokiFi Locker… so you might see some action in that regard soon enough! 🤔
FlokiFi Locker is Only the Beginning…
While the above should give you a clear picture of what we’re aiming to achieve with the FlokiFi locker, both when it comes to innovation in the industry and enhancing the FLOKI token with a utility-focus, we would like to make it clear that this is only the beginning.
FlokiFi is going to be MUCH more than just the Locker, so this is only the beginning.
We have a clear internal roadmap for what we are aiming at with FlokiFi which we won’t reveal now for obvious reasons (we need to maintain our competitive advantage!), but here’s something we can assure:
- There will be several other utility products introduced under the FlokiFi umbrella soon (we told you our plan is to underpromise and overdeliver with our roadmap!).
- Products that launch under the FlokiFi umbrella will have a simple goal: make the FLOKI token more deflationary and replenish the Floki Treasury through utility-focused transactions to allow us to eventually remove the 3% FLOKI transaction tax and give us a competitive advantage in the industry.
- Adoption for all products released under the FlokiFi umbrella will be massive due to a combination of Floki’s strong brand and marketing/growth mechanism we have in place.
As we’ve always said, FLOKI is here to disrupt the industry. One step at a time. The Floki Ecosystem consists of much more with our flagship Metaverse NFT game Valhalla, our University of Floki crypto education platform, our upcoming FlokiPlaces NFT and merchandise store, DeFi offerings through key partnerships and integrations, and now FlokiFi!
How to Access the FlokiFi Locker
Floki security partner and industry leading blockchain auditor Certik began auditing the FlokiFi Locker on the 15th of July, 2022.
You can access and lock items in the FlokiFi Locker on testnet right now via the link below (Rinkeby on ETH, and BSC, Kucoin Community Chain, & OKX Chain testnets supported):
You can lock pretty much anything on testnet right now: ERC-20 tokens, NFTs, and Liquidity Pool (LP) tokens. You can also make use of the innovative ERC-1155 standard to lock multi-tokens.
We will be announcing a date for mainnet launch as soon as we get final confirmation from Certik (which could be within a few days or take 1–2 weeks depending on Certik), we will deploy the FlokiFi Locker on the mainnet of all supported blockchains and make an announcement to that effect.
We have an AMA scheduled with the Certik team on Tuesday Aug 2, 2022 to discuss the FlokiFi Locker protocol and more. Make sure you don’t miss it!