The Ultimate Guide to Polywhale (KRILL)-2021.

May 7, 2021 | Reviews

If you have been around in crypto for longer than a week you will have heard the term DeFi. DeFi stands for Decentralised Finance and it is seeking (and succeeding) to remove the middle man from all your traditional financial services.

It does this by using smart contracts. Smart contracts are tamper-proof digital agreements. So you interact with code and not a man in a suit who is incentivised to make as much from you as physically possible.

For more info on DeFi read our What is DeFi article HERE.

Over the past 18 months or so we have gone through a few boom cycles of DeFi mania. First was the DeFi Summer of 2020 which seen some of the earliest projects in this space fly extremely high.

Yearn Finance being the most notably with headlines reading “This crypto just overtook Bitcoin” – A little clickbait goes a long way and fed well into the narrative of YFI, a DeFi protocol that was the first ‘yield aggregator’. With a great working product and only 30,000 YFI tokens, throw in the musk of DeFi Summer and we have a winner.

YFI reached around $40K at its peak and has since surpassed this in its latest run.

The next boom cycle which you could argue is still going, (albeit with a lot more scam coins) is the Binance Smart Chain revolution.

As the emerging DeFi projects predominantly used Ethereum, the network quickly got congested and backlogged. The nodes securing the network then started accepting transaction from whoever was willing to pay a high ETH gas fee. This quickly created a poor user experience especially for those who could not afford the $50+ trading fee (I mean who can support that over the long term?).

Now I believe we are at the forefront of a new wave that I think will outlast those that came before it. Polygon (previously known as Matic) has quickly solidified itself as the layer 2 blockchain of choice.

The beauty of Polygon is multi-factored. In its current state, Polygon can offer much quicker and ridiculously cheap transactions than either Ethereum Mainnet or Binance Smart Chain.

What is Polygon (MATIC)? article HERE

To put the fees into perspective, when you sign a transaction and confirm it in your MetaMask it often shows up as $0.00, as the fees are so small. You can execute 1000s of transactions for $1 which is an excellent way to onboard new users and those smaller retail investors. The beauty of this is because of the tiny fees and quick transaction times, you can afford to learn, which on a whole, is great for DeFi.

If you are still unsure how to set up a MetaMask and configure it to use the Polygon/Matic Network you can read our super simple guide HERE. 

From being involved with BSC projects from the get-go, we quickly realised that once Polygon gains traction, it is inevitable that they will need a great yield farming platform. So we began to hunt for one.

The best platform we came across was the subject of this article and that is Polywhale. 

Polywhale (KRILL) –

Polywhale and its KRILL token are (in our opinion) the best yield farm currently native to Polygon. With its first-mover advantage, Polywhale has secured its spot as the go-to place for yield farming on the chain.

As an investor, sometimes heading to projects that are less than a week old is a very very risky play. FUD is being thrown around and this can often be picked up and ran with by communities and the rot can set it. Although the team has been extremely transparent and open about everything they are doing.

After speaking with the Polywhale team, I was happy to go ahead and enter a position in KRILL as I believe they are genuine.

Since sticking around I have seen them beginning to build a great community and gain a lot of traction in the space.

For those of you who are new to DeFi, a yield farm is a place where you can deposit the coins/tokens you own and earn interest.

So instead of your coins being sat in a cold wallet or on an exchange (a big no-no), you can send them to your web3 wallet like MetaMask and deposit them into a yield farming protocol like Polywhale.

When you do this you will be earning interest, in this case, in the form of Polywhale’s native token KRILL.

Now, this isn’t some 0.1% APR rubbish that you get from the bank… The current annual returns are in their 100s if not 1,000s if you use Polywhale.

Again, this is all paid in KRILL.

So what is the catch? Well, there is and there isn’t one.

When a project first launches like this there are some pretty tasty returns to be made. It pays to be first here. That being said holding the KRILL token for the first few days might not be the best idea.

This is because those huge payouts (per day by the way), have to go somewhere. That somewhere is on the market which increases the supply. I think the price has since stabilised now we will begin to see the true value of the KRILL token.

BUT and it’s a big but… The whole idea behind KRILL is that their protocol and platform will be deflationary.

So what is that? Well, you know how currently the governments of the world like to just print money out of thin air? That leads to a thing called inflation.

Inflation happens due to there being more cash available so the value of it goes down compared to other things like groceries, cars, labour and everything else.

Getting back to Polywhale, their idea is to keep the supply of KRILL (in relation to its users) deflationary, so the opposite.

There are several ways they do this.

The basic idea of it is through emissions (KRILL coming on to the market) and burns (KRILL being burnt and removed from the market).

If you burn more than you release in emissions, then you have an overall net-deflationary token.

So how do Polywhale decide what to burn?

There are many burning mechanisms. The first is, each time you deposit into one of the vaults on Polywhale, there will be a fee that is to be paid in KRILL.

For example, if you deposit your KRILL tokens into the KRILL vault, there is a 10% deposit fee (paid in KRILL), this 10% is then taken and burnt to remove it from the supply forever.

This 10% may seem a lot but when you look at the daily returns you get it is nothing.

Screenshot 2021-05-07 at 10.31.12.png

Besides, you are helping the KRILL token and its users by removing KRILL and increasing the demand, which consequently drives the price up.

The current APR in the image above is 905% a year! I also need to get round to harvesting that earned KRILL and redepositing it into the vault. More on this and how to use KRILL in the next article.

Transaction fees on the platform are also paid for in, you guessed it… KRILL. Again, this further increases the demand for KRILL as a utility token require to operate the Polywhale platform.

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Guess, what they do with a portion of this transaction fee? Of course, they burn it.

75% of transaction fees are used to buy back more KRILL from the market whilst the remaining 25% of the fee is sent to the developer’s fund for funding the project.

For example, if you use their USDT pool currently you would be charged a 4% deposit fee.

Using round numbers – 

  • Deposit 100 USDT

  • Fee – 4 USDT

  • Fee split – 3 USDT is used to buy KRILL from the market creating a great demand and buy pressure for the token.

  • 1 USDT is used for developers fund.

It’s a great product I am really impressed.

What is the supply of KRILL?

The supply of KRILL is… Unlimited… Before you run away and think this is horrendous. Take a look at Pancake Swap (CAKE) and tell me their supply cap. That is also infinite.

This hasn’t stopped the success of this project whatsoever. Additionally, if the protocol is working as intended and enters into an exponentially deflationary phase due to network effects (more people using the network), this creates a huge net-deflationary mechanism where more KRILL is consistently being burnt than what is coming on to the market.

1 KRILL every block (2.1 seconds currently) is emitted.

Looking further at the roadmap of Polywhale, these guys don’t seem to be settling for the title of number 1 yield farm. They are looking to implement further projects on their App which will further increase the utilisation and demand for KRILL.

Polypad their Polygon chain Launchpad is on the cards which will require users to lock up or even potentially burn KRILL to partake in their IDOs. This as you can well imagine is great for token holders as first there will be a lot of KRILL being bought and next, it will be taken off the market! Win-win.

Other plans include an NFT platform, yield aggregator and leveraged yield farming. I will have to run this article back once these features are released as it all sounds incredible.

Gamification –

I believe what was part of BSC project’s success was that it had an air of playfulness about it.

This gamification with things like a KRILL lottery where users deposit and burn KRILL with a chance to win a huge prize pot of it are great ways to remove the pretence and allow these platforms to be enjoyable and less intimidating for users. I believe this is key to onboarding those new to crypto and Polywhale look like they have plans to roll out this feature.

To summarise this has all the makings of a brilliant project. Great tokenomics, lots of utility and a team that don’t look ready to settle for anything. The constant expansion and new product release is a must in this space. Evolve or die.

I will write up an article that goes into using these farms a little more and how to properly utilise the best yields.

That’s about it for now, we are definitely going to do a few more articles on Quickswap and Polywhale.

If you would like to find out How to buy KRILL – You can read our article here for the easiest, quickest and cheapest way without the need for a bridge HERE.

If you are reading this and would like an article similar to this for your project, get in touch we would love to work with you on more content like this!

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