ICON DeFi Solutions


Jul 30, 2020

5 min read

ICON DeFi Solutions

Hi ICONists🧑‍🚀,

While most DeFi solutions so far have been built on the Ethereum ecosystem, 208 projects according to DeFi prime to be exact. The rise of different DeFi projects on the ICON Network has definitely started. In this article, we’re taking a look at the current ICON DeFi projects.

The reason that ICON DeFi projects are so important is that the ICON Network has long fostered a great relationship with Korean authorities. With MyID and other ICON Solutions, the residents of Korea have successfully integrated blockchain applications into their everyday life. It is therefore expected that DeFi for ICON will make a great impact on the mainstream use and acceptance of the technology.

DeFi Use Cases on ICON

💰 Liquid ICX (LICX)

In March 2020, Block42 announced their plans to create Liquid ICX, a new form of ICX aimed towards the implementation of DeFi solutions. Block42 is a blockchain company founded with the goal to be able to get the best out of blockchain for everyone. Their main focus is to be able to provide blockchain solutions for corporate use and startups.

So far, the broader use for LICX is mostly unknown, it is assumed that this version of ICX can be compared to the wrapped Ether (WETH), an ERC20 version of ETH that allows enhanced usage for transferability and smart contract compatibility.

However, LICX is the basis for a DeFi solution that Block42 is building on the ICON Network. It is an IRC2 token that represents staked ICX making it able to be transferred without compromising the security of the network. It gives ICONists an alternative option to receive rewards while keeping the liquidity of their ICX. The implementation lowers to control that exchanges have over the network, and allows ICONists to own their own private keys. It is also expected that LICX will increase the transactions on the network as it will allow stakeholders to do other transactions than claiming and restaking. Below, the preview of the desktop version of this DeFi solution is shown.

⚖️ Balanced DAO

Balanced is a collaboration between ICX Station, PARROT9, Galen Danziger of Mousebelt, and Dan Brehmer of iBriz-ICONosphere and was the first DeFi project on ICON. Balanced is a Decentralized Autonomous Organization (DAO) that incentivizes people to deposit their ICX collateral and borrow digital assets pegged to the value of fiat currencies such as the USD. The first token that is created is the ICON Dollar, pegged to USD. There is no ICO and no pre-mine of tokens. Balanced contributors earn (mine) Balance Tokens, which entitle them to governance and rewards from network fees. Only Balance Token holders that actively contribute to the Balanced DAO receive these benefits.

The reason for the creation of this DeFi project is that native protocol tokens such as ICX are often too volatile for payments. When using ICX as collateral, a more stable token for payments within the ecosystem can be created. The Mainnet of Balance is expected to launch in Q1 of 2021. Thus far, you’re able to try out the prototype that is already created.

🚀 Stakin Lottery

In April 2020, Stakin received a grant from Velic Financial to build the first staking lossless lottery DApp on the ICON Ecosystem. While the lottery is mostly a gaming DApp, the underlying mechanism relies on financial interests generated through staking, therefore, the lottery can also be classified as DeFi. If you are interested in this project, you can join the waitlist here.

The Stakin Lossless Lottery is focussed on betting the interests from staking instead of the principal. It is a global and borderless initiative making staking ICX a fun and potentially very rewarding experience. Additionally, it is a decentralized transparent and trustless lottery, since it will be running through smart-contracts deployed on the ICON blockchain. Want to know more about the lossless lottery and how it works? Check the article here! For a sneak peek of the look, see the image below. Also, if you have any feedback or ideas in relation to this project, please do not hesitate to contact us over our Telegram or Twitter.

  • ✅ Stay tuned for more information about the Lossless Lottery on our channels!

🎉 FutureICX

Another DeFi project on the ICON Network is a gamified trading DApp called FutureICX. The DApp is available on both mobile as a desktop and lets you predict the price of ICX/USD on various timeframes, earn dividends and awards. Furthermore, the DApp also has a ledger integration.

💫 Hylian ICON Price Oracle

Another DeFi project on ICON is the Hylian Price Oracle. The oracle is created for ICX/USD and is on-chain built on ICON, operated by multiple entities. For now, the involved parties are mostly P-Rep candidates as the project is still in its Testnet phase.

The goals of this project are to provide an ICX/USD price for SCORE developers; since it is not possible to have external API calls from a SCORE. Additionally, Hylian will help to explore how oracles work running on ICON and to build collaborations for further projects in the future.

  • ✅ Check here for all the information on Hylian.

🏊‍♂️ IconPool

IconPool is a DeFi solution created by BlockDevs, a Web 3 organization focussed on offering a unique combination of blockchain specialization and understanding, to deliver human-centered web3 services such as Dapps and support application development globally.

IconPool is a static class for registering and retrieving $ICX. It is created to provide helper methods for easier consumption of $ICX. The builders like to see it as a driver for the growth of DeFi on ICX by binding the ecosystem together and becoming a foundational building block of the ICX Dapp Ecosystem.

🧐 Conclusion

The decentralized finance market (DeFi) is booming with new implementations, projects, and ideas. While most DeFi projects are built on Ethereum, the most recent creations on ICON are ensuring a bright future for the network. Because of ICON’s close-knit relationship with Korean government institutions and their many enterprise collaborations, it is to be expected that DeFi implementation on the network will bring the future of finance one step closer.

Do you know any other exciting DeFi projects on the ICON Network? Let us know!

DISCLAIMER: This is not financial advice. Staking, delegation, and cryptocurrencies involve a high degree of risk, and there is always the possibility of loss, including the loss of all staked digital assets. Additionally, delegators are at risk of slashing in case of security or liveness faults on some protocols. We advise you to do your due diligence before choosing a validator.

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