DeFi Kingdom (JEWEL)

From Our Network (20-11-2021):

"Built on Harmony, the GameFi platform combines DeFi elements (decentralized exchanges, liquidity pools and staking) with an elaborate NFT-based hero system."

Basics

• Based in:
• Started in / Announced on:
• Testnet release:
• Mainnet release: DFK Chain went live on 31-3-2022, but DeFi Kingdom was already live on Harmony for many months.
• Aka DFK

History

• Started out on Harmony, then launched DFK Chain on Avalanche and in August 2022 announced moving to Klaytn.

Audits & Exploits

• No bug bounty information could be found (17-1-2022).
• DeFiKingdoms on Harmony Scored 31% on DeFi Safety (17-1-2022):

"This contract is extremely active at over 1000 interactions a day. There is no software function documentation. There is no evidence of testing. No formal verification has taken place on this protocol. DeFiKingdoms was audited once post launch."

Bugs/Exploits

• One of the co-founders came out saying they messed up one of the very first addresses used to launch the beginnings of DFK, saying it was funded 'by a friend'.

Governance

Admin Keys

• From DeFi Safety (17-1-2022):

"There is no admin control information. No contracts are labelled as upgradeable. There is no documentation on pause control. There is no timelock documentation."

• From the docs (28-12-2021):

"Our funds are secured in a multi-sig wallet at multisig.harmony.one. These wallets will be controlled by 4 founding members of the project, and any transaction will require 3 out of 4 signatures to execute.

Founding Member Addresses:

1. Frisky Fox: 0x17D717EB3DD20a202dce9e8e396A444db1Af1D28
2. Sinstar Necro: 0xA76Ea4f96136AF0fF23e7CC426Bfc21E451ff9f5
3. Jericho Splendershoes: 0x2b45C2dF1E982E596137d49A02afC02B9fb8B8dB
4. Admiral Omicron: 0x19612e015E6bC4f5C7ba122bd4acA23646414b72 "

Token

Token Allocation

• The JEWEL token has a hard cap of 500,000,000 tokens. From the docs:

"10,000,000 JEWEL tokens will be be pre-minted and distributed as follows:

1. 5,000,000 JEWEL: Allocated to fund the future development of the game. These tokens will be time-locked and release over a set schedule as features are completed.
2. 2,000,000 JEWEL: Allocated for promotion of the project, including marketing, airdrops, etc. These tokens are also time-locked to release slowly over the next few years, to ensure that there are always funds available to market the game and acquire new players and investors.
3. 2,000,000 JEWEL: Allocated for initial liquidity. These tokens will be matched with ONE tokens to form the initial liquidity pool and will not be withdrawn or sold.
4. 1,000,000 JEWEL: Allocated for bounties and hours for the founding team based on their work towards launch. Half of these will be awarded at launch, and the other half will vest over time."

Utility

• From the DFK Chain announcement (8-3-2022):

"JEWEL will no longer only serve as a Serendale Governance Token, but will now also serve as the Network Gas Token of DFK Chain. Players of DeFi Kingdoms: Crystalvale will use JEWEL to pay for transactions on DFK Chain. This decision does not increase the total cap of the JEWEL token. JEWEL will continue to only be minted in the Master Garden in Serendale. In-game bridging will be provided to allow for JEWEL to be moved to DFK Chain to pay for transactions and provide liquidity. The effective total supply across all chains remains at 500 Million JEWEL. With JEWEL used as a gas fee where will it go?

1. A portion will be given to the designated wallets of the validators. This allows us to attract more validators and further decentralize the chain.
2. A portion will be burnt. This will continuously increase the value of JEWEL by implementing a consistent burn mechanic and deflating the supply.
3. A portion will be sent to the Quest Fund to reward our community and players."

1. From The Defiant (15-12-2021):

"JEWEL is a fungible token that can be used to buy in-game NFTs, staked in something called the Bank where it accrues fees from DFK’s DEX and JEWEL transactions, as well as for voting in governance."

Technology

• Whitepaper or docs can be found here.
• Code can be viewed here. From DeFi Safety (17-1-2022):

"With only 8 commits, this repo does not have significant development history."

Implementations

• Built on: Harmony, plans to deploy on Avalanche (15-12-2021). The Avalanche deployment turned into a subnet; DeFi Kingdoms Blockchain aka DFK Chain (8-3-2022). In August 2022 it announced moving to Klaytn.

How it works

• From Ansem's Q1 report (1-1-2022):

"The two main features of DFK are its’ decentralized exchange where you can trade various crypto assets, and their hero NFTs that you can use to summon other heroes, do quests, and eventually compete against other players in PVP. Their in-game economy and hero NFTs benefit users more than any other ecosystem that I’ve seen so far."

• From The Defiant (15-12-2021):

"DeFi Kingdom is expanding the definition of NFTs by offering its version of the tokens, called Heroes. They are playable characters that go on quests to earn tokens. In contrast with static NFT, Heroes gain experience through these adventures and can be equipped with gear to increase their efficacy.

What’s driving the project’s growth and how does it work? Hans Hauge, head of quant strategy at asset management firm, Ikigai, who released a long article on DFK on Dec. 13, thinks the project effectively combines DeFi, NFTs, and metaversal elements to create a real functioning economy. A “real economy” here means one with multiple functioning parts. The five most prominent of these parts are the JEWEL token, a decentralized exchange (DEX), a place to stake liquidity provider tokens called the Gardens, the Hero NFTs, and an upcoming feature called Kingdoms."

Fees

• From Ansem's Q1 report (1-1-2022):

"Regarding their dex, users who stake the governance token Jewel in the bank receive 30% of all transaction fees. For those providing liquidity, they are rewarded with the majority of the initial token distribution, partially locked, instead of early deals to VCs and others in seed rounds like most projects. Even with the in-game ecosystem of heroes, the majority of the costs associated with summoning new heroes are re-introduced back into the system. 30% of all summoning costs are provided later to players as questing rewards and 10% of all summoning costs are paid out to to xJewel stakers in the bank."

Staking

• From their docs (31-12-2021):

"When you deposit your JEWEL in the Bank, you receive xJEWEL in exchange at a ratio that can be found in the Teller's menu. The ratio of xJEWEL to JEWEL grows over time. The xJEWEL fund receives a share of fees from the DEX, liquidity withdrawals, and from in-game transactions. The fees collected from the DEX and liquidity withdrawals are not purely in JEWEL. When any player uses the claim function, the bank will use these non-JEWEL tokens to market purchase more JEWEL, growing the total value of the fund and ultimately increasing the ratio of xJEWEL to JEWEL. Since Bank rewards are determined by transaction volume, the bank does not have a fixed yield."

Liquidity Mining

• From the DFK Chain announcement (8-3-2022):

"In partnership with Avalanche Foundation, DeFi Kingdoms will be incentivizing the early phase of the Crystalvale launch on DFK Chain with a total of ~$15mm in incentives."

Oracle Method

• From DeFi Safety (17-1-2022):

"The oracle is not identified. [Frontrunning] countermeasures are not documented. Flashloan protection is identified. "

Their Other Projects

DFK Chain & Crystalvale

• From the announcement (8-3-2022):

"Powered by @avalancheavax DFK Chain will be the home of the previously announced Crystalvale expansion!"

Roadmap

• Can be found here (20-12-2021).

Usage

• From Our Network (20-11-2021):

"In a span of three months DFK's player base has grown from under 1k to 41k — including $904 million in total transaction volume and $2.12 billion in assets. Thanks to DFK's recent success, TVL on Harmony (including staked tokens) hit record highs of $550 million earlier this week. DFK's TVL, which grew by 47% to $310 million in the past week, now accounts for 55.19% of Harmony's TVL. For comparison, SushiSwap is the next largest protocol at $95 million TVL."

Team, Funding and Partners

Team

• Full team can be found [here].

• From DeFi Safety (17-1-2022):

"One public name was attached to this protocol, but it's otherwise extremely difficult to determine the development team. Although a few members declare themselves as DeFi Kingdoms staff on LinkedIn, their profiles are inaccessible to anyone outside of their personal networks, and therefore not verifiable."

Partners

• Partnered with Ava Labs to build out DFK Chain (8-3-2022).

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