Author: Trustless Labs

Breaking Through the User Threshold: Bottleneck in the Development of the Cryptocurrency Market

In the current blockchain and cryptocurrency market, decentralized technology has given rise to many powerful new products. However, the user base for these products is limited to a small number of individuals with deep knowledge and experience in the industry. The main reason for this situation is that users need to master many new concepts, such as wallets, cross-chain bridges, and miner fees, which undoubtedly set a high threshold for ordinary users.

Currently, centralized exchanges serve as a "temporary" solution, providing convenience for users who want to engage with cryptocurrency but have not yet learned how to use it. However, centralized exchanges have a significant drawback: they cannot fully leverage the strong network effects of decentralized ecosystems and open networks. The products that centralized entities can provide will always be just a subset of the available on-chain products. Permissionless protocols can enable new types of meme coins, lending pools, and derivatives to be deployed faster than any centralized server, and this effect continues to strengthen as the network grows.

Infinex: A Game-Changing DAPP

Currently, poor user experience (UX) is a key obstacle to realizing the vision of widespread application of blockchain technology. While current decentralized products and services are powerful, the high user threshold has created a significant gap between users and products. Many people are unwilling to bridge this gap, and Infinex aims to help users enter the decentralized world more easily by simplifying the user experience.

Founded by Kain Warwick, the creator of Synthetix, the comprehensive DeFi platform Infinex is dedicated to unifying the decentralized ecosystem and applications under a single user experience layer designed for users familiar with Web2.

Infinex's solution not only provides a simplified user interface, but also integrates different decentralized ecosystems and applications under a unified user experience layer. By using Infinex's convenient frontend, users can enjoy the advantages of decentralized products without needing in-depth knowledge of complex blockchain technology. This not only makes it easier for users to access various decentralized services, but also fully leverages the strong effects of decentralized networks, continuously attracting more developers and users to join the decentralized ecosystem, driving the rapid emergence of more innovative products, and further accelerating the mainstream adoption of blockchain technology.

Current Data

On May 13, Infinex officially opened account creation and deposit channels, and announced that it would distribute 377 million governance points (GP) to all deposit users within the next 30 days.

Currently, the total locked value of Infinex on networks such as Ethereum, Arbitrum, Base, Solana, Optimism, and Polygon has exceeded $110 million. This milestone marks Infinex's initial success and lays a solid foundation for its future development.

Key Innovations and Breakthroughs

Infinex's innovations and breakthroughs mainly manifest in the following aspects:

Enhancing User Experience

The launch of Infinex aims to enhance user experience by simplifying user operations. Infinex adopts commonly used referral links and transaction fee rebate mechanisms from centralized exchanges, and generates a public-private key pair for each user, stored in the browser and automatically signed during transactions. These improvements make user operations more convenient, eliminating the need for cumbersome on-chain operations and lowering the entry threshold. For example, Infinex generates a unique deposit address for each user, allowing them to deposit USDT, USDC, or sUSD, with transparent and traceable funds to ensure security.

Enhancing Liquidity and Market Attractiveness

Infinex plans to integrate with Synthetix Perps V3 to provide more efficient perpetual contract trading services. Infinex not only supports various collaterals, but also increases capital efficiency by using stablecoins such as USDC, reducing the risk for liquidity providers. For example, using USDC as collateral can allow liquidity providers to achieve an annualized return of 13.6% at a 110% collateral ratio, while SNX can only achieve a 3% annualized return at a 500% collateral ratio.

Cross-Chain Expansion

Infinex supports multi-chain operations, allowing users to trade on multiple chains such as Ethereum, Optimism, and Base. This can expand the user base, bringing more trading volume and income.

Enhancing Market Competitiveness

The launch of Infinex aims to directly compete with centralized exchanges. By providing a user experience similar to centralized exchanges, Infinex hopes to attract more users to transition from CEX to DEX. In addition, Infinex's seamless experience layer design further bridges the experience gap between CeFi and DeFi, promoting the popularization of DeFi. For example, the feature highlights within Infinex include login with username and password, multi-factor authentication, and cross-chain deposits, making users feel like they are using a centralized trading platform, but with backend support from decentralized and permissionless liquidity.

Analyzing Infinex's Governance Mechanism: What are GP and Patron NFT?

As a typical decentralized application, Infinex has built a community-centric governance framework. In this framework, governance points (GP) and Patron NFT play a crucial role in ensuring the transparency of the protocol, the effectiveness of incentive mechanisms, and the fairness of fund management.

What are Governance Points (GP)?

GP is a type of governance points used in the Infinex ecosystem to reward and incentivize community members. Community members can obtain GP through various means, such as participating in GP farming, being active on platforms like Discord and Twitter, participating in governance meetings, holding specified NFTs (must register an Infinex account and deposit at least 50 USDC), and submitting and passing proposals. GP primarily serves the following roles in Infinex's governance framework:

• Participation in Governance: GP holders have the right to participate in governance voting in Infinex, including the approval and execution of various proposals. This mechanism ensures that community members have a voice in the future development of the protocol.
• Redeeming Rewards: GP can be used to redeem Patron NFTs, enhancing the holder's status and influence in the community, and receiving certain rewards and recognition.
• Community Incentives: By allocating GP to reward active community participants, Infinex incentivizes more users to participate and contribute, promoting the healthy development of the ecosystem.

What is Patron NFT?

Patron NFT is a non-fungible token representing the identity of contributors within the Infinex ecosystem. Each Patron NFT can be obtained by burning 200,000 GP, and the minting fees will be allocated to the Infinex Treasury for operational expenses, growth and market incentives, and contributor alignment. This design aims to recognize members who have made significant contributions to the Infinex ecosystem. The roles of Patron NFT in Infinex's governance framework include:

• Symbol of Contributor Identity: Users holding Patron NFTs are considered sponsors of Infinex, and this recognition helps enhance their reputation and influence within the community.
• Participation Incentive Program: Patron NFTs can be used as incentives to reward members who make non-financial contributions to the Infinex protocol, further promoting active community participation.
• Participation in Governance: While Patron NFTs themselves do not grant direct governance rights, their holders have high credibility within the community, which can indirectly influence community decisions and governance.

Through GP and Patron NFT, Infinex has built a decentralized, transparent, and effective governance framework, encouraging community members to actively participate and contribute to the ecosystem's development.

New Airdrop Opportunity? - Infinex "Speedrun the Waitlist"

Infinex launched the "Speedrun the Waitlist" event on May 13 at 00:00 UTC. Here is an overview of the event:

Account Creation and Deposit:

Starting from May 13 at 00:00 UTC, anyone can create an Infinex account and deposit USDC.

Governance Points (GP):

During the 30-day "Speedrun the Waitlist" event, depositors will receive 377 million GP, a portion of Patron NFT supply, and priority access to future integrations.

Infinex officially commits to limiting the total supply of GP to 600 million (changed to 630 million in the subsequent XIP-26 proposal) and ensuring it does not become a "point scam."

GP is primarily used for governing Infinex, and the Infinex committee has allocated 3000 Patron NFTs to GP holders, with one NFT exchangeable for every 200,000 GP.

Event Details:

The event starts on May 14 at 00:00 UTC (24 hours after account opening and deposit).

Deposits will be locked during the event.

Early deposits will receive more GP.

377 million GP will be linearly distributed to depositors based on the total TVL (Total Value Locked).

GP: Real Economic Returns?

So, can GP potentially bring returns to retail investors?

First, GP is an important screening criterion for access to the official version of Infinex. According to official disclosures, Infinex has received over 200,000 whitelist applications for access to its official release, so the GP point system is needed to determine which users can have the first experience when Infinex releases its first set of features.

Second, will Infinex follow the trend of various Points-Fi projects in the current market and launch point-to-coin exchanges or airdrop rewards related to GP?

It is worth noting that in an article released by Infinex in September 2023, it was mentioned that "Infinex's interests will be aligned with Synthetix, so Infinex will not launch its own token," and "a large portion of governance rights will be allocated to Synthetix stakers."

However, in Infinex's community governance, the proposal XIP-19 submitted in February 2024 regarding allocating more GP to SNX stakers was rejected, which may reflect a certain degree of adjustment in the direction of the Infinex community.

Furthermore, Infinex's current development and reach have surpassed its initial positioning as "a frontend application newly launched by Synthetix to optimize user experience," and it is thriving in the broader Web3 multi-chain ecosystem beyond Synthetix.

It is worth considering that in Infinex's governance framework, GP is the most core part of its incentive measures. Therefore, in the absence of issuing tokens, how will the points ultimately be realized as tangible economic returns for users?

Currently, Infinex continues to improve and update the supply and distribution of GP, while also stimulating users' imagination and expectations of the expanding GP through opening up broader channels and conducting more diverse point incentive activities. However, what's next after accumulating GP?

Whether it is to launch its own governance token or to fulfill users' expectations through other economic incentives, Infinex still needs to submit a more comprehensive and reasonable answer to users. Therefore, the actual value and potential of GP still require further verification.

Conclusion

The launch of Infinex aims to address the bottlenecks of various decentralized applications in the current cryptocurrency market by enhancing user experience, increasing liquidity and market attractiveness, achieving cross-chain expansion, and enhancing market competitiveness. Through simplifying user operations, introducing various collaterals and stablecoins, supporting multi-chain operations, and providing a user experience similar to centralized exchanges, Infinex demonstrates its innovation and breakthroughs.

However, the success of Infinex still needs to validate the effectiveness of its governance mechanism and incentive measures, especially the actual economic returns of governance points (GP) and Patron NFT. Although the GP point system provides users with opportunities to participate in governance and receive rewards, its actual value and potential still need further observation and verification. Whether Infinex can submit a comprehensive and reasonable answer to users will determine its long-term competitiveness and development prospects in the decentralized finance field.

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