Preface:
I came across this coin from a anti-rebase post on DeFi from the founder of this coin. Through deep diving and doing my own research I have came to the conclusion that this is the coin I would bet comes out on top as one of the top tokens of 2022. I have done the research so you don't have to. I will admit, while asking the Founder questions and tearing apart every angle I could in the discord, I was offered a mod position in the discord. Other than the trivial mod roles I have no previous or current affiliations with the project team and I have invested in this protocol. As always, this is only my opinion and not financial advice.
Introduction
I would like to start by introducing the founder. The reason why I want to start with this is that so many of the coins listed here have anonymous teams or they are "doxxed" by some auditing team that we are forced to trust. With many of these devs and founders located in different counties with much different crypto laws (or none at all) it makes the "doxxing" almost useless as in the event someone decides to exit scam we still really have no one to hold accountable.
The founder for this coin/protocol is Andrew Eddy, a US based sole-founder who's background is in web development, Economics, and having ran real businesses at the highest level(CEO) with his previous endeavor Sequr. His LinkedIn can be found here: https://www.linkedin.com/in/andrew-eddy-75a63337 A little off-topic but the man has been bit by a shark. You can find the inside edition story on this at: https://www.insideedition.com/aftermath-of-terrifying-shark-attack-captured-in-newly-released-bodycam-video-62353
Few things to digest here.
- He is U.S. based meaning he abides by US law and regulation
- He is real and not just a "dev" behind a "great idea"
- He has the skills and experience to back up this protocol
- He has been bitten by a shark.
Ok now onto a look inside the protocol. I'm going to split this into two sections; The road less traveled(V1) and The Vision(V2)
The Road Less traveled:
The team developing this protocol has really thought of the current state of events(Time/Wonderland) as well as the future with the initial implementations at launch. The reason this is titled as the road less traveled is that many of these mechanisms have been implemented in traditional finance and economic fields yet has either been poorly implemented or not implemented at all in the world of crypto. So the road has been paved before but has not been traveled in this space quite like this. As with any new project this base foundation is meant to be built on. However this base in itself is of great value and even without v2 would supply a high mcap once it has picked up steam. As said before, A-lot of this has not ever been done before in DeFi. To any investor this presents a huge untapped value of a token on a pioneering front. Below are the mechanisms that have launched with the protocol in V1.
Fair + Stealth Launch
$Novo Token is launched with no VC allocation, no pre-mine, no ICO/IDO, no private sale or seed round. Novo has decided that the simplest and most fair way to start would be by providing liquidity and opening up trading of the token on a Dex. No announcements or marketing were done ahead of the token launch. This launch happened a mere 3 weeks ago. with only 315 unique wallet addresses at the time of this post it makes it one of the stealthiest and fair launches I have seen yet.
I. Tokenomics
Starting Supply (Max): 1,000,000,00
Public Supply: 500,000,000 Treasury (Liquidity & Staking Rewards): 450,000,000 Lab (Project Growth): 50,000,000
II. Volume based protocol
Currently until temporal staking is live (explanation of how this works is further down) NOVO has a 5% transaction fee or tax. 2.5% is being sent back to the holders via reflections while the other 2.5% is sent to a staking address. Once TS and the dApp are live this staking address will distribute the rewards to the first round of stakers in the protocol OR sent to a burn address. This is still being decided on by the team.
III. Anti-Whale mechanism
Besides the wallets running the protocol (Treasury, Staking/rewards, and growth) No one wallet can hold more than 0.5% or 5,000,000 Novo. As you can expect this relatively easy to counteract with just using multiple wallets however, as price of this coin increases it makes whales abilities to pump and dump the coin as the transaction fees along with this feature make it incredibly hard to create any arbitrage opportunity as it is needed to be done over multiple wallets and very costly. In turn in any event this happens holders are rewarded with the fees generated by the volume (any volume is good volume with this protocol) and the treasury is also rewarded which increases the ability of the price recovery method with-in the protocols infrastructure (this will be explained in more detail below)
IV. Smart treasury
Currently the treasury is auto converted to BNB and deposited into yield compounders through stable coin single side staking and/or stable coin LP pairs. This diversifies the treasury across multiple over-collateralized stable coins and operates different than a traditional treasury as its not held in its native token.
V. Price recovery method.
In the event of a bear market the treasury can buy NOVO on the open market. The most important function of the Treasury is to perform PRM's which is Price Recovery Mechanism's. An example would be the Novo Treasury buying NOVO from the market to combat prolonged bear market exposure. This is where the part of the fees from the transactions going to the smart treasury comes into place. With more volume (even on the sell side in a bear market) The treasury becomes stronger and stronger.
All of the above have been implemented on NOVO's launch. As you can see the base implementation of this coin is already unique and provides holders to invest with confidence. A-lot of this is already used by economists and governments around the world. All rewards and mechanisms are backed by something with REAL value. Not "printed" or made up as we have seen with rebase tokens with their native coin.
The Vision (V2)
As I pointed out in the intro, this protocol not only has a great starting base layer but also the roadmap and future implementations only build and compound on the original foundation. Some topics will have the same label as V1. This is because with some of the other things implemented the original basis will be able to operate even more efficient but typically in the same manor as before.
I. Volume based protocol
Nifty visual breakdown: https://imgur.com/QZ9e96Q
On a transaction of $1000 there will be a 5% transaction fee. Within this transaction fee $20(40%) goes to the liquidity pool, $5(10%) is burned/removed from the supply, $5 goes into the treasury(10%), with the remaining $5(10%) going straight to the staking pool.In the event this is transfered a 2% fee will be applied with the same breakdown.
As you can see this is very lucrative for the holders of NOVO. However, You are probably asking your self how an why are people going to transact novo so we can reap the sweet rewards? The answer to that question lies in the Pilars of utility outlined in the documents provided on their website. I'll list and explain below and elaborate on the more in depth aspects:
II. Temporal staking
This one is something I really love and levels the playing field between all types of holders. I'm going to link straight to NOVO's website to explain this as there is an algorithm at play and it is different than your traditional staking methods. This will all happen within NOVOs dApp which is soon to be released.
Temporal Staking: https://novo-2.gitbook.io/welcome-to-gitbook/rest-and-reflect-aka-temporal-staking
The general idea is to give everyone a fair chance. To do this time staked is taken into the traditional equation and weighted along side the amount. This gives early adopters and loyalty to the protocol a piece of the pie where as with traditional staking whoever owns more of the liquidity is typically issued the most rewards. Once you un-stake your time resets and the people below you move up the ladder to higher time staked rewards.
III. Smart Treasury V2
This be the same as above except instead done manually it will be done via a liquidity advisor and smart contracts. NOVO realizes liquidity in the staking pool along side returns are what drives the strength of the treasury. Making this automated with set parameters along side an advisor who measures just how liquid the treasury is so NOVO can effectively launch PRMs is a huge win for the protocol in my book.
IV. Pillars of utility
Source: https://novo-2.gitbook.io/welcome-to-gitbook/pillars-of-utility
- Pillar #1 - Temporal Staking: This is more than liquidity farming. Although we value liquidity, Novo doesn’t have a need for your liquidity. In fact, one of our greatest sources of income is our ability to provide liquidity. Temporal staking represents a commitment to the protocol that is measured and rewarded differently than other staking contracts. By staking your Novo and locking them in a smart contract, you are providing two things, stability to the project, and liquidity outside of our ecosystem. You will receive additional rewards from transactions that are earmarked specifically for stakers. This is where things get interesting. What happens next is a good segway into Pillar #2, Proxy Growth.
- Pillar #2 - Proxy Growth: When you stake Novo, something we call rest and reflect, you are doing more than solidifying your share of the rewards, you are actively participating in other DeFi protocols. If a user stakes $100 worth of Novo, the Treasury uses $100 worth of BNB (or the native token of whatever chain you are using) and does one or more of the following functions: Stakes to Yield Optimizers such as Beefy.Finance Liquidity farming and AMM projects Additional Yield Farming opportunities Your staked Novo represents value and we don’t want to lock it, we want to amplify it for our holders, in a passive and (eventually) automated way. In other words, you can have your stake (think cake) and eat it too. But thats not all. There are more ways your staked Novo are earning. This takes us to Pillar #3, Treasury Yields.
- Pillar #3 - Treasury Yields: The Novo Smart Treasury has a lot of jobs, but none more important than that of its job to earn. The treasury is the majority owner of liquidity. It earns a percentage of fees from transacted Novo across AMMs. The Treasury also receives a small portion of fees directly from volume. The treasury also receives ecosystem fees such as those derived from Novo Pay (Pillar #4) and future product releases. The Treasury earns for the protocol and distributes the earnings to the protocol via the stakers. Now let’s discuss Pillar #4, Novo Pay.
- Pillar #4 - Novo Pay: We believe our greatest derivation of volume will come from one of our simplest products, Novo Pay. Novo Pay is a fiat to token onboarding solution meant for easy implementation in a project's Dapp. Novo Pay allows projects (including our own) to purchase a token listed only on a DEX directly with a credit/debit card. All in one module, any project can handle payment processing and KYC with all the regulatory requirements solved for and taken care of. Until buying tokens from new projects is easy, DeFi and Crypto as a whole can not grow to its full potential. Novo Pay solves that problem. Novo Pay used NOVO token to swap fiat to whatever coin available. This in turn will lower the barrier of entry for common people to get into DeFi. Everything they need is on-ramped easily and wrapped in one token. However if they wish to buy another token on Novo pay the swap will take place via novo to BNB for example. So if you have been following along until now you will realize this is a huge volume driver and rewards mechanism for holders of NOVO.
- Pillar #5 - Blockchain Agnosticism: Novo in its current state is a token on Binance Smart Chain or BSC. A lot of people wonder why we chose BSC and our answer is twofold. The first, and more obvious reason, is that it is fast and cheap. This is DeFi and people need to move funds, approve staking contracts, and be flexible. Obviously, given the current state of affairs on Ethereum, it was not a viable option. The second reason we chose BSC is that we knew it wasn’t going to be our final destination, and would simply serve as a good starting chain for us. From day one, we have been quietly building a system to accomplish true blockchain agnosticism. Rather than minting and burning tokens, we are implementing bridge lockers that allow cross-chain transactions and support one overall supply. Which additional chains we add first will be up to the community. Achieving a single, unified supply is only the first step in true agnosticism. The second challenge, a more daunting task, is to implement a unified staking and reward mechanism that interacts with the Novo smart treasury on a protocol level, rather than a blockchain level. With the right execution, blockchain agnosticism paves the way for even more Pillars of Utility in the future.
Technical Analysis:
Obviously TA is not helpful on a coin that just launched. However, in the current market this coin has been moving well against bitcoin, It has done about 700%+ at the time of this post and has help prices for about a week now while constantly hugging ATH. So yes, I am saying it could go up or it could go down :). Luckily for anyone invested in this token the case remains that currently whatever volume, whether good or bad, means rewards.
This protocol has the safe and stable things we know and love about DeFi wrapped into it. This significantly lowers the barriers to entry to DeFi and thus makes it a very attractive up and comer.
Closing statements:
I have taken a deep dive into a ton of these new coins lately and have followed DeFi for quite a while. This has been one of the very few projects I have seen pop up with actual use. I fully believe this will be the next hot crypto and will be the building block of the future of DeFi. I am simply coming to this sub with the information I have found. I hope this has helped you at-least have a better understanding of this project. What you choose to do with this information is on you.
Useful links:
Interview with the founder done by Defi Enthusiast: https://www.youtube.com/watch?v=5JAmxnB-kwY
Wolf of Alt Street AMA with the founder: https://youtu.be/968XN-qD348
NOVO website: https://www.novodefi.xyz/
Novo Discord: https://discord.com/invite/CYQkfpF2fc
CoinGecko: https://www.coingecko.com/en/coins/novo
TLDR: CEO is likeable, Tokenomics are impressive, and future prospect looks incredible. Insert rocket emojis and obligatory to the moon!
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