Crudeoil Finance Project Review: A Decentralized Deflationary Yield Farming Ecosystem

Crudeoil has just begun developing its deflationary yield farming ecosystem, and the project’s continued success remains in the future developments of features such as their AMM and yield aggregator.

By
Goon Trades
on
February 19, 2021
Category:
Project Insight

Introduction

CrudeOil Finance aims to build out a commodity-like yield farming token that allows users to treat it as a store of value and earn yield in the protocol’s early stages. The team decided on this system to be a hybrid yield farming and deflationary token. This captures the best of both worlds in DeFi, creating a commodity like money while also allowing early adopters to earn a significant amount of yield incentives. OIL has a total supply of 100,000 OIL which will be drastically reduced due to the deflationary burn mechanism applied to every transaction.

The team behind the protocol has decided on this fixed supply and deflationary yield farm system as an experiment in the De-Fi world. The idea is that this token will act as a store of value as there is a constant reduction of supply. On top of this, to fit into the current De-Fi landscape, the team has incorporated yield incentives.

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Key Features:

--Fixed Supply Tokenomics

--Deflationary Burn Mechanism

--Robust Roadmap

Crudeoil Ecosystem

This protocol aims to integrate a plethora of DeFi features into is an ecosystem. The team is currently finishing up the final touches on its staking and farming contracts, which will allow users to earn liquidity incentives. Initially, users will provide OIL/BNB or OIL/BUSD liquidity to earn additional rewards in OIL tokens. There is also an OIL staking pool that incentivizes users in OIL rewards for those who wish to stake their OIL tokens. This is the first step the protocol is taking to fulfill its mission of being a yield and staking incentivized platform. Alongside the initial pools, we can expect to see other pools allowing users to earn OIL. In the future, Crudeoil will integrate a yield optimizer into the ecosystem down the line.

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Before the release of yield aggregation the team is focused on launching their own Crudeoil DEX which will leverage AMM technology. This DEX will incorporate numerous yield farming opportunities as well as a launchpad system. The team is yet to release information revolving around these products, but the AMM is expected to come in Q2 of 2021.

Moving forward in Q3 of 2021 the team is aiming to launch the decentralized governance system alongside the Crudeoil NFT marketplace. The governance feature will allow OIL holders to vote and propose protocol changes. This is similar to nearly all decentralized governance protocols seen on both Ethereum and the BSC. As for the NFT Marketplace, this is something the team is currently developing on the backburner, and they do not have a final or concrete structure of how the market will operate


Tokenomics


The team at Crudeoil put a lot of consideration into their tokenomics model, which is scarce and able to provide users liquidity rewards. This is a bit challenging as other AMM tokens such as CAKE, BAKE, and SUSHI all have unlimited supplies to ensure liquidity providers will be incentivized. As for their initial token, OIL, the team decided this will not be the case, incorporating a deflationary mechanism and hard-capped supply at 100,000 OIL. This system will allow OIL to trade similar to a commodity once all the tokens have been emitted. On top of this, there is a 2% transaction fee, 50% of the tax is sent to OIL holders while the other 50% is burned permanently. This burn will be applied to every transaction until 90% of the total supply has been removed from circulation.

There is currently only 26,000 OIL in circulation from the private-sale and pre-sale, but token emissions will begin soon. A large portion of OIL will be distributed through yield incentives, so it is important to note that the project will be in an inflationary stage while rewards are being distributed to liquidity providers and stakers.

For those who wish to learn more about deflationary mechanisms and the OIL token sales refer to the following sources:

Private Sale Stats/ Pre sale Announcement…

Cryptonomics: Deflationary Tokens



Roadmap

I have collected a few of the most integral developments on the roadmap and displayed them below. These are only a fraction of the things the team aims to release, and the full list can be found here:

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Q1-2021 (Development Started)

  • Main Staking contract development and testing
  • Staking dashboard
  • Staking platform with liquidity incentives
  • Timelock implementation

Q2-2021

  • Crudeoil AMM Swap Development
  • Third party audit
  • CEX listing
  • Numerous yield farming options
  • Partnerships

Q3- 2021

  • Governance protocol development
  • NFT Marketplace development

Q4-2021

  • Mobile application development

Overall, the protocol has an extensive list of developments it aims to crank out; lets see if they can get it done!


Concluding Thoughts

Crudeoil Finance aims to tackle the issue of inflationary AMM tokens through their unique OIL tokenomics structure. This model allows OIL to battle the inflationary macroeconomic backdrop we are currently in. The team doesn’t stop there as they plan to build out an innovative ecosystem that contains an AMM, yield optimizer, and an NFT marketplace all in one. If successful this DeFi ecosystem will be tied into the OIL token, allowing holders to extract value from the success of the project.

Overall, Crudeoil has just begun developing its deflationary yield farming ecosystem, and they are off to a fantastic start. The project’s success remains in the future developments of features such as their AMM and yield aggregator.

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For more information, or if you wish to stay up to date on the project, check out project and media pages:

Website

Medium

Telegram

Twitter

Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.

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Goon Trades

Greg (GoonTrades) is BSC News' Chief Editor and is also a writer for the team. Currently enrolled as an economics major, he finds himself as a cryptocurrency researcher, writer, and technical trader.