Cryptocurrency is the new global economic revolution built to diminish traditional economic monopoly built around fiat currency. Inflation is the main concern as far as fiat currency is concerned. Dollar $ One of most prominent and dominant fiat currency in the world had major inflation through out the years. According to the Bureau of Labor Statistics consumer price index, today’s prices in 2020 are 1,962.84% higher than average prices since 1800. The U.S. dollar experienced an average inflation rate of 1.39% per year during this period, causing the real value of a dollar to decrease.
In other words, $1 in 1800 is equivalent in purchasing power to about $20.63 in 2020, a difference of $19.63 over 220 years.
Dollar $ inflation with time (Source: www.in2013dollars.com)
The 1800 inflation rate was 2.44%. The current year-over-year inflation rate (2019 to 2020) is now 1.31%1. If this number holds, $1 today will be equivalent in buying power to $1.01 next year.
In 2009 Satoshi Nakamoto introduced Bitcoin into the world as the first digital currency. The purpose of the underlying asset was to make a monetary system without a middleman. P2P transactions between users which in theory will eliminate the central figure by making it decentralized. Bitcoin has a fair share of pros as well as cons. However, the main point is that It has a fixed supply, 21 million coins. That will be the maximum amount of bitcoin ever exist in the world. Sathoshi Nakamoto somehow managed to put a dagger into the every running inflation issues associate with the fiat economy.
Subsequently, Etherum/BNB (Binance Smart Chain) were born, with smart contract capabilities which paved the way towards global utilization and much more use cases of cryptocurrency. And now after almost 11 years after the first viable digital currency was created, here we are at this important juncture for the digital assets and decentralization.
Decentralized Finance (DEFI)is the latest trend of cryptocurrencies. It was started way back in 2019 and never had a huge transaction at the beginning as many new innovations. And Now in 2020 We are in a huge DEFI bubble, growing exponentially everyday.
In a nutshell, a cult with many decentralized financial applications which have been innovated to replace the traditional centralized counterparts. Although still small when compared to the global economy, DeFi has seen rapid growth in 2020. In early 2019, there was only $275M of crypto collateral locked in the DeFi economy. By February 2021, that number had grown to $40B, and it has continued to grow impressively throughout the year, hitting $2.5B in early July 2020, $3B by mid July 2020, $4B on 25 July 2020 and currently sitting at $40B. This growth shows that there is significant interest in DeFi from within the crypto community, but it’s still a small enough sector that many outside the industry may not have heard of DeFi yet.
Today, there is a wide range of DeFi apps available that provide much of what the traditional, centralized financial system provides. From borrowing and lending to investing and insuring, the largely Ethereum/BSC -powered DeFi market caters to many of the most pressing financial needs of the individual.
Decentralized Lending/Borrowing Platforms
Decentralized Trading Platforms (DEXs)
Assets (Stable coins)
Yield Farming and Staking
And many more… (Please refer to The complete list here in DefiPrime)
Since our project is about Farming and Staking, We will dig a bit more towards that subsection (You can learn a lot about other section by going through the provided link) Simply put, “Staking” is the act of locking cryptocurrencies to receive rewards. “Yield Farming” a shorthand for clever strategies where putting crypto temporarily at the disposal of some startup’s application earns its owner more cryptocurrency. Essentially Both terms are pretty much similar.
There are few well-known farming/staking projects already exists such as YFI (Yearn Finance) , Sushi (Sushi Protocol, etc…)
Traditional staking gigs require an infinite supply. New tokens need to be minted in order to keep the users staking. This “inflationary staking” causes a lot of sell pressure, and diminish the value of the token.
This is where crudeoil finance comes into play. We are building a perfect hybrid staking/farming model with a deflationary crypto asset. Unlike most of other project, Our native token maximum total supply will be 100,000 OIL, No new tokens will ever be minted again. In fact Total supply will keep reducing with the immutable burn function built in the contract with every transaction going through the smart contract. Those tokens will be gone forever. This is just a DEFI experiment build by bunch of crypto geeks and We build it for the community. We would love to see how community is gonna embrace this. How the community react to a deflating currency :)