NGK set foot in DeFi to lay the foundation for building a new ecosystem

The DeFi liquidity mining has brought high sentiment in the market, but also brought a siphon effect. At present, Ethereum is the main battlefield of DeFi. The reason is that Ethereum has accumulated many assets under the early ICO trend. In other words, Ethereum is currently the most abundant blockchain in the world. The biggest drawback of Ethereum is brought by its POW mechanism, which affects the efficiency and transaction costs of Ethereum. The high liquidity brought by the richness of Ethereum assets enables the Ethereum to “command the world”. Although the Ethereum 2.0 has opened its doors in December, it can truly achieve the expected result in at least two years. At present, the Ethereum can only put its hopes on the expansion plan led by the Layer

NGK DeFi

If we put aside other factors, this is not the most suitable bottom layer in terms of performance. The series of problems found in the Ethereum are borne by the Ethereum users.

NGK is the bottom layer of a blockchain. Its native token, NGK, has skyrocketed 43 times since it went online within a month this year. The good performance after going online makes many investors start to learn about NGK.

NGK uses DPOSS as the consensus mechanism, which supports VN virtual machines and the deployment of smart contracts. Based on the above two points, first, the DPOSS equity proof does not require many resources to do the calculations, which reduces the cost of the verifier and improves the system operating efficiency. Thus, the NGK has better transaction efficiency and transaction cost compared to Ethereum. With the support of smart contracts, the NGK is fully equipped to build a large number of DeFi protocols.

NGK DeFi

On the other hand, it is difficult to deploy DeFi for many blockchain systems due to insufficient asset and weak cross-chain technology, which makes the chain a “highway” without cars. Therefore, the current deployment of DeFi needs the system integration such as Ethereum to make a connection. As for the NGK blockchain, it can perform “cross-chain” assets on other chains to its own system through atomic exchange to realize the richness of system assets. Thus, the NGK’s application has a huge potential in the financial field.

Recently, NGK launched a lending protocol of Baccarat, which solves the needs for liquidity holders of cryptocurrency to invest in the crypto market. It does not require selling the assets, and it empowers the NGK tokens and BGV tokens.

The value connection of DeFi among NGK, USDN and BGV

Currently, lending is a common scenario in DeFi, and it is also a basic scenario for building a DeFi ecosystem. There are three tokens involved in the NGK’s lending agreement, they are the NGK’s native tokens NGK, USDN, and the BGV token in the Baccarat protocol.

In this lending protocol, users can pledge the NGK or USDN tokens to the smart contract. By trading these two tokens in the trading pool, the ratio of pledged NGK or USDN will change, and every transaction in the trading pool will obtain handling fees and new token BGV.

NGK DeFi

The token model of BGV

The total amount of BGV is fixed at 60,000 units, of which 10,000 units are used as airdrop rewards for the active members, 90% of which will be produced by liquidity mining. This means that 90% of BGV is generated by lending. According to the current situation, the BGV mining can last at least two months before all BGVs are mined. The BGV will not be destroyed and will not be issued as well. Thus, the future development potential of BGV is promising.

Currently, the BGV is still in the early stage, and the AOFEX is now launched. Judging from the upward trend since it went online, the increase is very gratifying.

NGK has the potential for DeFi layout. Based on the Baccarat lending protocol, NGK will continue to shine in the DeFi field. As for the BGV mining, there are not many chips in the early circulation, and it may become a rigid demand followed by the progress of Baccarat lending. At the same time, the trend of the BGV secondary market is relatively good. These factors will form a positive feedback for the dual promotion.