Harmony(ONE) Ecosystem – Need to stimulate Yield source for growth
The Harmony(ONE) ecosystem already has the basics to boom, with the launch of a $300 million stimulus package.
In recent times, ecosystems have continued to grow strongly, with the continuous launch of packages to support the development of the system.
Ecosystems move fast, there are many impressive strides, and the Harmony ecosystem is one such ecosystem.
To help you catch up with an ecosystem that has experienced relatively impressive growth in recent times like Harmony, in this article, I will go with you through the Harmony ecosystem and answer questions together:
- What arrays are on Harmony?
- What stage is the Harmony ecosystem at?
- Look for investment opportunities and projections of the Harmony ecosystem.
We will find out through the next article!
Overview of Harmony(ONE)
What is Harmony(ONE)?
Harmony(ONE) is an open source Blockchain for building decentralized applications. Harmony(ONE) uses state sharding, which splits the chain into shards that process transactions and store data in parallel, to support fast transactions.
The sharding structure is also used by many blockchains including ETH 2.0 and Near Protocol.
Harmony(ONE) currently supports a thousand nodes across four shards, works to generate new blocks every 8 seconds, and eliminates the possibility of re-fork with its own technologies.
The project plans to add more shards and support more nodes in the future. The efficient Proof of Stake (EPoS) mechanism is the one used by Harmony(ONE).
Highlights of Harmony(ONE)
Harmony(ONE)’s salient features include:
- High Security and High Random State Sharding Mechanism: Sharding is proven by blockchains to help scale blockchains without compromising security and decentralization.
- Highly efficient algorithm, short finality: Practical Byzantine Fault Tolerance’s transaction processing power results in low transaction fees and short finality.
- Using EPoS algorithm: Reduce centralization and distribute rewards fairly to thousands of validators.
Outstanding parameters of blockchain Harmony (November 26, 2021):
- Tx Finality: 2s;
- Validators: 1,000;
- Tx Fees: $0.00001;
- Shard size: 250 nodes;
- Number of shards: 4;
- Wallet number: 400,000+;
- Mainnet: June 2019;
- Marketcap: $3.2 billion;
- Total Supply: 13,156,044,839 ONE.
Parameters can be monitored at Harmony’s explorer.
History, current situation and roadmap
Harmony has come a long way and has many memorable milestones:
- June 2019: Mainnet Phase 1 (Mainnet Launch), with a pre-registered list of validators belonging to the Harmony Foundation, is not open to all validators;
- August 2019: Mainnet Phase 2 (Open Node Operations), allowing the number of validators to increase from 600 to 1,000, with the number of validators not belonging to the Harmony Foundation from 151 to 320.
- May 2020: Open Staking Launch, open staking rewards for all validators and delegators.
Project investors and partners
Harmony is invested by many large funds in the market: Binance Labs, Dealean Capital, Digital Asset Capital Management, Lotus Capital, BTC12 Capital, CSP DAO, UniValues Associates, ANMI OECD, Hive Chain Labs, Lemniscap, Consensus Capital, Continue Capital , Torchlight Ventures,…
Harmony(ONE) Ecosystem Overview
An overview of the pieces on Harmony(ONE) will be introduced and analyzed in the following section, according to categories in the ecosystem.
DEX on Harmony(ONE)
DEX projects on the Harmony(ONE) ecosystem include:
- Sushiswap: Sushiswap also extends to Harmony – one of the chains compatible with EVM. The amount of TVL on the platform is at $100 million.
- Openswap: A small AMM DEX on Harmony system, with only 3 million USD TVL and already has basic features like swap, liquidity, farming. In the past, there was a time when the TVL project reached 5 million USD with their high APR farming, but the number of TVL is still relatively modest.
- Curve Finance: $15 million TVL on Curve Finance – a DEX for peer-to-peer assets on Harmony. Harmony is one of the 7 chains that Curve Finance operates on.
- MochiSwap: MochiSwap is an AMM DEX on Harmony with TVL at just $1 million. Liquidity mining programs have also been implemented in the past but have not been effective in attracting TVL.
- Bossswap Finance: An AMM DEX on Harmony with TVL at just $1.5 million. Liquidity mining programs have been implemented in the past and TVL once reached 10 million USD, but then liquidity was quickly withdrawn from the protocol due to the lack of loyalty of liquidity providers.
- Dopple Finance: A DEX for peer-to-peer value assets similar to Curve Finance, running on multiple chains including BSC, Harmony and Fantom, with the current TVL in Harmony at just $5,000.
- ViperSwap: A DEX fork Uniswap V2, currently having $35 million TVL in the protocol, with improvements in farming and staking project tokens and LP Tokens. One thing that is quite impressive about this project is that the Volume 24h/TVL index is quite high, about 0.4 compared to only 0.1 of many other projects.
- DeFi Kingdoms: An NFT project but has a DEX product, and has the leading liquidity in the system. DeFi Kingdoms has a TVL of more than $250 million (if staking is included, $380 million) and ranks in the top 1 of the Harmony system, with more than 110 million TVL belonging to the project token. Currently, the project only shows the features of the DEX (Swap, liquidity, farming and project token staking) but has not released any game products other than launching and selling heroes.
The project is relatively creative in terms of interface design for products – all applications are like in a pixel game about a decade ago.
As the leading DEX in the Harmony ecosystem, the project is extremely innovative in the way its products are deployed.
- SeeSwap: AMM DEX on Harmony(ONE) system. The amount of TVL in this protocol is also very low and insignificant.
- There are also some other DEXs such as Fuzz Finance, JellySwap, SonicSwap, LootSwap… but those DEX floors are not outstanding and impressive.
As you can see, it is quite clear that Defi Kingdoms is firmly holding the leading position in AMM DEX on Harmony ecosystem. With the TVL volume of this application has led the system, and the project is also extremely innovative in UI/UX and combined with gaming and NFT.
Applications from other EVM chains that expand to Harmony such as Sushiswap, Curve Finance also do not take the leading position of DeFi Kingdoms, because they have the advantage of being native applications and have an abundant source of tokens for liquidity mining.
The AMM DEX array is the first piece that needs to be completed in any ecosystem to be ready for the future explosion of other segments. The Harmony system has achieved this requirement in the DEX array, ready for the development of other categories in the system.
Lending on Harmony(ONE)
Lending projects on the Harmony ecosystem currently only have two projects:
- Tranquil Finance: Money Market Protocol on Harmony. Currently TVL in the project is at $51 million, with $17 million borrowed. Tranquil Finance has many similarities with a fork of Aave, currently supporting 5 assets including ONE, ETH, WBTC, USDC, USDT. The project has been mainnet since early November, and has been implementing liquidity mining.
- Granary Finance: Money Market Protocol on Harmony is not yet operational.
⇒ Comment: Lending is an important factor in an ecosystem, helping people to effectively utilize capital in an ecosystem.
Currently, a mainnet lending application and doing well to facilitate the further development of the ecosystem is enough to achieve the basic conditions for the development of the Harmony system.
Stablecoin on Harmony(ONE)
Stablecoins on the Harmony ecosystem include:
- BUSD, USDT, USDC, DAI: Stablecoins on Ethereum and BSC systems are bridged to Harmony. Currently, the total amount of these stablecoins on Harmony is over $110 million.
⇒ Comment: In addition, I have not found a stablecoin application or any other stablecoin on the Harmony ecosystem. Stablecoins are an important array in each system, reflecting the level of development of that system.
When money flows into the ecosystem, stablecoins will be the first place where the money flows. Harmony’s $ 110 million level is not large, reflecting the amount of money poured into the ecosystem is not at a high level, and there are not many applications to attract money flow from other systems.
Yield farm aggregator/ Yield leverage
Yield Farm Aggregator/ Yield Leverage projects on the Harmony ecosystem include:
- BabyJewel: A yield farming application combined with Defi Kingdoms, allowing users to receive the Defi Kingdoms JEWEL token when holding the BabyJewel project token. In addition, the project also works on NFT, preparing to launch NFT in the near future. There is currently no way to track project performance.
- Paradise Finance: A Yield Farming app on Harmony, $150,000 TVL, just appeared and launched in October 2021.
- Farmers Only Finance: A Yield Farming application on Harmony that allows you to access and provide liquidity on multiple DEXs in just one interface of the project, and with only one token (zap-in and zap-out). Project TVL is currently at $8 million.
- Beefy Finance: A multichain Yield Farming app with activity on Harmony, with a TVL of $3 million.
⇒ Comment: The Yield farm aggregator puzzle pieces have appeared, but there is no yield leverage application on the system, to both take advantage of the active lending array on the system, and no application has a really impressive TVL.
Currently, the yield is only coming from DEX exchanges, but almost no lending applications are used. Perhaps this will be the next step of yield synthesis applications on the Harmony system.
NFT & Game on Harmony(ONE)
NFT & Game projects on the Harmony(ONE) ecosystem include:
- DeFi Kingdoms: A DEX app with gaming products. Although the gaming products have not been released yet, the application’s DEX product is at the top of TVL in the entire ecosystem. According to the project team, between the fourth quarter of 2021 and the first quarter of 2022, the game will be released.
- Da Vinci Gallery: NFT Marketplace on the Harmony ecosystem. Up to now, the application has had some impressive numbers: 1 million USD in trading volume, 7,736 people minting NFT on the application, more than 73,000 NFT minted,…
- Armoonia: NFT Marketplace on Harmony is only running testnet and not running mainnet yet.
- Kuro Shiba, Harmony Whales, CryptoPig NFT, Harmoonies, Dingos, QuizDrop…: Projects on NFT and gaming on Harmony system.
⇒ Comment: The NFT puzzle pieces on Harmony already have major marketplaces, as well as many NFT Collectibles projects.
Launchpad on Harmony(ONE)
Launchpad projects on the Harmony ecosystem include:
- Artemis Protocol: Launchpad has worked natively on the Harmony system, launched the Reserve Protocol project – a fork of Olympus DAO on Harmony. The project attracted a lot of attention from the community and was oversubscribed 4 to 9 times in all 3 pools.
- Harmony Pad: Launchpad on Harmony, but not on Harmony but works on BSC. Although they had planned for Harmony, they ran the first IDO QuizDrop on BSC, and the project was hacked for 1 million dollars right in this first IDO. Up to now, the project has not seen any other activities.
⇒ Comment: Harmony currently has only one active launchpad, Artemis Protocol. They also just launched one project and have not announced many subsequent launch projects on this platform.
However, since this is currently the only way to IDO tokens, there will probably be more projects using Artemis Protocol to sell project tokens to the community.
Other puzzle pieces
Launchpad projects on the Harmony(ONE) ecosystem include:
- Venom DAO: A fork of OHM on Harmony. Currently, the project TVL is 130 million USD, the largest of the 4 fork Olympus DAO on this platform.
- 8ight Finance: Another fork of OHM on Harmony. Currently TVL project is 6 million USD.
- OneDAO Finance: Another fork of OHM on Harmony. Currently TVL project is 41 million USD.
- Reverse Protocol: Another fork of OHM on Harmony. Currently, the project TVL is 2.5 million USD.
- Bridge native Harmony – Ethereum: The official bridge of the Harmony team to flow money between Ethereum and Harmony.
- Anyswap, RelayChain, Synapse Protocol: Bridges that allow money flow from Harmony to other chains such as BSC, Terra, Polygon, Ethereum,…
- Stellaverse: An unknown project on which part of Harmony.
- Chainlink and Band Protocol: 2 oracles operating on the Harmony ecosystem, providing accurate data for the operation of Dapps on the system.
General comments and projections
The necessary elements of the Harmony(ONE) ecosystem are relatively complete:
- The infrastructure is complete, applications on EVM chains can be deployed on Harmony easily. From there, opening up the opportunity for a series of developers and Dapps to work on the system.
- The basic pieces of the system such as Bridge, DEX, lending, … have been completed and can be used well.
In addition, a number of factors have been well done by Harmony to stimulate the development of the system, such as launching a package to stimulate the development of the ecosystem with a value of more than 300 million dollars. You can read more about that program here.
In general, the basic elements of the system have been completed relatively completely, just waiting for the next stimulus to explode if conditions allow in the near future.
Currently, the yield to farm on this ecosystem is also temporarily exhausted, with a relatively low APR in the protocols, and not enough to attract more new money into the system.
The next steps to be able to bring cash flow into the Harmony ecosystem include:
The next step of this ecosystem is to stimulate the yield source to continue to attract cash flow into the system, to push the project’s TVL to increase over time.
However, that is not the only direction for the project. With a relatively large number of OlympusDAO fork projects. Moreover, this is also a way for projects to earn a more stable source of TVL, instead of opening unsustainable liquidity mining sessions.
See also: Analysis of the operation model Olympus DAO
Hopefully, through the above article, you will have a better overview of the Harmony ecosystem, the main protocols in the Harmony system, and start looking for investment opportunities on the Harmony ecosystem.
What do you think is the next direction of the Harmony ecosystem? Which ecosystem overview do you want to learn about next? Please comment below the article to let me know!