KoalaDefi — Make $LYPTUS Great Again

I saw something interesting and thought you’d like to know

To be honest, it was the missus that told me to help her invest in KoalaDefi. The image above alone somehow called out to her and since then she has DCA’ed a couple of times.

After she found a new job however, she got less interested in DeFi (god bless my TVL) and I took up the responsibility of watching her investment and helping to compound every now and then. Prices of the $LYPTUS token fell since the time she aped in.

Soon after, KoalaDefi announced the v2 launch of their platform and minting of the $LYPTUS token halted. This meant that there would no longer be any inflation for the token.

With the stoppage of ever getting any more $LYPTUS, coupled with the KoalaDefi Bush farms, where users could stake their $LYPTUS holdings to earn other tokens (with a slight deposit fee that goes into burning the $LYPTUS token), $LYPTUS is truly deflationary at this juncture.

At this time, please take a mental note of the market cap of $LYPTUS.

For folks that seek out deflationary mechanisms, KoalaDefi is a good option to consider. Not many know about the tokenomics of $LYPTUS and it’s just sitting there, a rare gem to be discovered.

Fast forward to September 2021, ApeSwap announces the KoalaDefi vaults and lo and behold, there is a single vault for $LYPTUS. I had a sudden revelation and that sparked my interest into researching a bit more on the token and writing this article.

The ApeSwap vaults work just like the single staking $LYPTUS pool at KoalaDefi — stake $LYPTUS to earn $NALIS, their v2 token. But instead of rewarding $NALIS, the vault will swap to $LYPTUS and recompound it. Thus over time, users who stake $LYPTUS at ApeSwap will see their quantity go up.

So now we have a deflationary token, with a market cap of 1.2 million plus a vault which grows it’s stake and I decided to do a bit more digging on my own.

There are currently around 1600 holders of $LYPTUS with about 3.8 million tokens sitting in smart contracts. If we were to consider the single vault at ApeSwap and the single pool at KoalaDefi, they add up to around 2.3 million tokens staked.

That results in around 1.5 million tokens sitting in LP pools ready for purchase.

As we all know, token prices are directly correlated to the LP pair that they are in. Generally, the lesser quantity of $LYPTUS in a LYPTUS-BNB LP, the higher price it will be, assuming $BNB price remains stable. This applies to all other LP pairs that includes $LYPTUS.

Since the vault will auto convert to $LYPTUS, it reduces the amount over time, slowly adding upward price pressure on the token. (Of course, this assumes that the amount of $LYPTUS being brought out of the LP is higher than the amount of $LYPTUS going in). Since $LYPTUS isn’t being minted anymore. There is reduced chances of a farm and dump situation.

So my ask to the community and to the developers at KoalaDefi is this:

• Introduce other $LYPTUS mechanism that accelerates the removal of supply from the economy. Last I checked it looks like $LYPTUS is burned at the rate of around a 100/day . Approx.36500/year. I have heard rumors of more upcoming utilities involving $LYPTUS that may add more supply shortages over time. If true, that is going to have an increased impact to the demand for the token.
• For the community, pending the release of a $LYPTUS vault at KoalaDefi, do consider moving to the ApeSwap vaults to increase the buy pressure of $LYPTUS from then open market. There is a 2% APR difference between KoalaDefi and ApeSwap (KoalaDefi being higher).
• Or just simply purchase some and stake them. It may pull down APRs for the short term but as $LYPTUS becomes scarcer, the price will appreciate and it will inadvertently push up APRs again.

Like I mentioned earlier, I do hold a small amount of $LYPTUS but it is not life changing even if prices go to double digits. But I see a opportunity in $LYPTUS that does not exist for another DeFi platform today. It is a situation that can only be described by the Architect in the Matrix movie.

You are the eventuality of an anomaly, which despite my sincerest efforts I have been unable to eliminate from what is otherwise a harmony of mathematical precision.

Simply put, all other DeFi platforms have tokens that will be minted forever in order to maintain APRs as well as to reward users for participation. $LYPTUS is an anomaly and since DeFi is decentralized, and we know the basics of supply and demand, the community at large, even without developer involvement could affect the circulating supply and subsequently draw in the demand when prices go up.

This is kind of like a social experiment and it is only made possible by the fact that $LYPTUS is not being minted.

If every member in the KoalaDefi Telegram puts in $250 each into $LYPTUS. That would mean more than half of the supply would be gone from the open market. And I am sure there will be a significant upward price movement.

If holders sell, the vaults will “buyback” from the market eventually and price recovery will occur. It would be interesting to see how things will pan out in this unique position that $LYPTUS is in today.

Wanna give it a try?

Derek (JP)