Sharknado Coin Docs

DeFi 2.0

The first step towards DeFi 2.0

The Shortcomings of DeFi 1.0

DeFi 1.0 was based on liquidity mining. Simply put, liquidity mining is a mechanism where platforms reward users with their own native token in return for depositing resources that some other user may trade or borrow.
The issue is that these protocols are diluting their token supply in return for capital contributions, which are usually impermanent. So what happens is that individuals come in, commit their resources to the protocol, reap its benefits, and then withdraw both their resources and their rewards, dumping the native token in the market.
There are numerous cases of this conundrum taking place. According to DeBank, one such case is of an initiative named Big Data Protocol, which garnered approximately $6 billion in combined worth locked throughout a six-day period of liquidity mining incentives, only to steeply collapse to a present rate of $3.1 million.
However, liquidity mining operations aren't always so brief and short-lived. COMP coin by Compound Finance has sustained a long-term and continuous liquidity mining operation.
Regardless, despite the length, liquidity mining is a risky strategy to employ in DeFi. It waters down the supply of a project and draws money from mercenary users, as evidenced by Big Data Protocol's initiative.

Why Is Sharknado Coin Introducing DeFi 2.0 in a Game-Fi ecosystem?

A number of new projects are abandoning liquidity mining (which was employed largely in DeFi 1.0) in favor of exploring new substitutes. SHARKO DAO is introducing DeFi 2.0 to overcome the shortcomings of DeFi 1.0.
The mechanisms of automatic LP acquisition by the DAO Treasury enable SHARKO to be the owner of its own liquidity, which is a significant distinction from many (but not all) DeFi 1.0 projects that see liquidity dwindle when rewards are distributed to farmers.
The SHARKO protocol goal is to possess more than 90% of liquidity of the SHARKO-BNB pool. The platform is quite confident that the liquidity is not going to go away since it is owned by none other than SHARKO DAO itself. On top of that, they're even getting LP fees!
Also, another goal of SHARKO is to start farming DEX tokens (I.E. Cake) with the self owned LPs. If we find its impossible to farm with our LPs on Pancakeswap, we are planning a liquidity migration to start farming DEX tokens on different AMMs depending on the partnerships we may be able to put in place in the future.
In order to raise more DAO controlled LPs there will be the option to bond LPs for SHARKO tokens in the near future.

Liquidity Stability

​Being the liquidity owned by the DAO, there is no chance of rug pulls and liquidity unstability, this guarantees higher price stability.
I.E. The DAO has the chance to migrate its liquidity to other DEXs in order to earn more fees & farm DEX tokens. Another cool option for the DAO is the possibility to decide to buyback and burn part of the token in the treasury LP fund. Having more choices and earning possibilities makes DeFi 2.0 protocols way stronger than classic protocols where users own liquidity.