If you’re looking for a rundown of what the Wault.Finance platform is all about (particularly the true decentralized and community nature of the project), there have been several good primers written to date.
For this venture, we’re going to focus on the $WEX Token for WaultSwap. Within a very short period, the platform has amassed $477MM in total value locked (TVL). This is a key metric to help identify the level of adoption and usage of a DeFi platform. It can also serve as a fundamental indicator for pricing the underlying tokens. Here are the top 5 DeFi projects, ranked by TVL:
Looking at the data points, Uniswap leads the pack with a market cap to TVL ratio of 2.03, or double the total value locked. All other tokens in the top 5 are well below 1.
WaultSwap’s metrics (as of the time of this writing) are as follows:
- Market Cap: $35.5MM
- TVL: $480MM
- Cap / TVL: 0.07
The Cap/TVL ratio discounts WaultSwap by 85% if we consider 0.5 to be the average. It is important to point out that both Compound and Aave have been around for a while, and may carry a higher premium. For that reason, let’s assume then that within the next couple of months, the Cap / TVL ratio for the platform may approach 0.25. That would put $WEX right at $0.03, which is over 200% from its current price.
This simple thought experiment assumes a fixed TVL, but it seems pretty clear that with the partnerships and general usage of the platform, we may be looking at a continued upward trajectory. If it can rival the success of PancakeSwap, currently at $8B, $WEX could skyrocket to $1.00!
It should be acknowledged that the current dev team faced a major challenge yesterday when they were hit by an exploit of their WUSD contract:
(1) Below is the detailed write-up of the attack that we've deduced in collaboration with @InspexCo. The attacker gained ~$816k. Luckily, this problem occurred early on, giving us the chance to fix it before WUSD's outstanding supply increased further. Continued in comments… https://t.co/R3TPT5q5wB
— Wault Finance (@Wault_Finance) August 4, 2021
They have responded to the issue with focus and transparency (even though we don’t know who is behind the platform, but that’s ok :). I’m interpreting this event as a bump in the road to establishing a robust Defi platform. Prices are recovering and Gate.io should be opening up transfers again soon. As this happened, there were circuit breakers in place, both within the platform and the centralized exchanges to prevent widespread losses. Between these established mechanisms, the new learnings, and the commitment to make those who minted WUSD whole on their wallets, I feel confident the team is in it for the right reasons.
#Beast#
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