Challenges Facing the Crypto Market: How to Drop User Barriers?

In the current blockchain and crypto market, decentralized technology has driven the emergence of many innovative products. However, the user base for these products is mainly concentrated among those with in-depth knowledge and rich experience in the industry. The main reason for this phenomenon is that ordinary users need to grasp complex concepts such as wallets, cross-chain bridges, and miner fees, which undoubtedly sets a high barrier to entry.

Currently, centralized exchanges serve as a stopgap measure, providing convenience for users who wish to engage with but have not yet fully mastered the methods of using encryption currency. However, centralized exchanges have obvious flaws: they cannot fully leverage the powerful network effects of decentralized ecosystems and open networks. Products offered by centralized entities are always just a subset of the products available on-chain. In contrast, permissionless protocols enable the deployment of new meme coins, lending pools, and derivatives faster than any centralized service, and this effect continues to strengthen as the network expands.

Infinex: A Breakthrough Solution for DAPP

Currently, a poor user experience (UX) is a key barrier hindering the large-scale application of blockchain technology. Although existing decentralized products and services are powerful, the high entry barriers have created a huge gap between users and the products. Many people are unwilling to cross this gap, and Infinex aims to help users enter the decentralized world more easily by simplifying the user experience.

Infinex is a comprehensive DeFi platform dedicated to unifying decentralized ecosystems and applications under a simple user experience layer, designed specifically for users familiar with Web2.

Infinex's solution is not just about providing a simplified user interface, but also about integrating different decentralized ecosystems and applications through a unified user experience layer. By using the convenient front end of Infinex, users can enjoy the advantages of decentralized products without needing to delve into the complexities of blockchain technology. This approach not only makes it easier for users to access various decentralized services, but also fully leverages the powerful effects of decentralized networks, continuously attracting more developers and users to join the decentralized ecosystem, driving the rapid emergence of more innovative products, and further promoting the development of the entire industry, accelerating the mainstream adoption of blockchain technology.

Current Data

On May 13, Infinex officially opened account creation and deposit channels, announcing that it will distribute 377 million governance points GP to all deposit users over the next 30 days.

Currently, Infinex's total locked value across multiple networks has exceeded $110 million. This milestone marks the initial success of Infinex and lays a solid foundation for its future development.

Main Innovations and Breakthroughs

The innovations and breakthroughs of Infinex are primarily reflected in the following aspects:

Enhance User Experience

Infinex aims to enhance user experience by simplifying user operations. It adopts common referral links and trading fee rebate mechanisms, and generates a public-private key pair for each user, stored in the browser, which is automatically signed during transactions. These improvements make user operations more convenient, eliminating the need for cumbersome on-chain operations, thus lowering the entry barrier. For example, Infinex generates a unique deposit address for each user, allowing deposits using various stablecoins, with transparent and verifiable funds, ensuring security.

Enhance liquidity and market attractiveness

Infinex plans to provide more efficient perpetual contract trading services by integrating with other protocols. Infinex not only supports various collateral types but also enhances capital efficiency and reduces liquidity provider risks by using stablecoins. For example, using a certain stablecoin as collateral can allow liquidity providers to achieve higher annualized returns at lower collateral rates.

Cross-chain Expansion

Infinex supports multi-chain operations, allowing users to trade across multiple chains. This expands the user base, bringing more trading volume and revenue.

Enhance market competitiveness

The launch of Infinex aims to directly compete with centralized exchanges. By providing a similar user experience, Infinex hopes to attract more users to transition from centralized exchanges to decentralized exchanges. Furthermore, Infinex's seamless experience layer design further bridges the experience gap between centralized finance and decentralized finance, promoting the adoption of decentralized finance. For example, the key features included in Infinex consist of logging in using a username and password, multi-factor authentication, and cross-chain deposits. These features make users feel like they are using a centralized trading platform, but the backend is supported by decentralized and permissionless liquidity.

Analyzing Infinex Governance Mechanism: GP and Patron NFT

As a typical decentralized application, Infinex has built a community-centric governance framework. In this framework, Governance Points (GP) and Patron NFTs play a crucial role in ensuring the transparency of the protocol, the effectiveness of the incentive mechanisms, and the fairness of fund management.

GP (Governance Points)

GP is the governance point used to reward and incentivize community members within the Infinex ecosystem. Community members can obtain GP through various means, such as participating in GP Farming, being active on community platforms, attending governance meetings, holding designated NFTs, and submitting and passing proposals, among others. GP mainly plays the following roles within the Infinex governance framework:

• Participation in Governance: GP holders have the right to participate in Infinex's governance voting, including the approval and execution of various proposals. This ensures that community members have a voice in the future development of the protocol.
• Redemption Rewards: GP can be used to redeem Patron NFTs, which not only enhances the holder's status and influence in the community but also provides certain rewards and recognition.
• Community Incentives: By allocating GP to reward members who actively participate in community activities, Infinex encourages more users to engage and contribute, promoting the healthy development of the ecosystem.

Patron NFT

Patron NFT is a non-fungible token that represents the identity of contributors within Infinex. Each Patron NFT can be obtained by burning 200,000 GP, and the minting fees will be allocated to the Infinex Treasury for covering operational expenses, growth, market incentives, and contributor alignment, among other costs. This design aims to honor members who have made significant contributions to the Infinex ecosystem. The role of Patron NFT within the Infinex governance framework includes:

• Symbol of Contributor Identity: Users holding Patron NFTs are regarded as sponsors of Infinex, and this recognition helps enhance their prestige and influence within the community.
• Participate in incentive programs: Patron NFTs can be used as incentives to reward members who make non-financial contributions to the Infinex protocol, further promoting active participation in the community.
• Participation in Governance: Although the Patron NFT itself does not grant direct governance rights, its holders have a high reputation in the community, and this influence can indirectly affect community decisions and governance.

Through GP and Patron NFT, Infinex has built a decentralized, transparent, and effective governance framework that encourages community members to actively participate and contribute to the development of the ecosystem.

Infinex "Whitelist Racing Event"

Infinex launched a whitelist racing event on May 13. Here is an overview of the event:

Create Account and Deposit:

Starting from May 13, anyone can create an Infinex account and deposit funds.

Governance Points (GP):

During the 30-day event, stakers will receive 377 million GP, a portion of the Patron NFT supply, and priority access to future integrations.

Infinex officially promises that the total supply of GP is limited to 630 million and will not turn into a "point scam."

GP is mainly used for governing Infinex, and the Infinex committee has allocated 3000 Patron NFTs to GP holders, with one NFT redeemable for every 200,000 GP.

Event Details:

The event starts on May 14 (24 hours after the account is opened for deposits).

Deposits will be locked during the event.

Early deposits will receive more GP.

377 million GP will be linearly distributed to stakers based on the total TVL (Total Value Locked).

GP: Real Economic Returns?

So, can GP bring potential returns to retail investors?

First of all, GP is an important review standard for accessing the "ticket" for the official version of Infinex. According to official disclosure, Infinex has received over 200,000 whitelist applications for access qualifications since its official release, so it is necessary to use the GP points system to filter and decide which users can be the first to experience the integrated features when Infinex launches.

Secondly, will Infinex follow the trend of various popular Points-Fi projects in the current market and introduce GP-related points exchange for coins or airdrop rewards?

It is important to note that Infinex mentioned in an article published in September 2023, "Infinex's interests will align with Synthetix, so Infinex will not launch its own token," and that "a large portion of governance rights will be allocated to Synthetix stakers."

However, in the community governance of Infinex, a proposal submitted in February 2024 to allocate more GP to SNX stakers was rejected, which may reflect a certain degree of directional adjustment within the Infinex community.

In addition, Infinex's current development and reach have surpassed its early positioning as "the new front-end application launched by Synthetix to optimize user experience," and it is gradually thriving in the broader Web3 multi-chain ecosystem.

It is worth considering that in the governance framework of Infinex, the GP is the most core part of its incentive measures. So, how can points ultimately be realized as tangible economic returns to users in the absence of token issuance by Infinex?

Currently, Infinex is continuously improving and updating the supply and distribution of GP, while also stimulating users' imagination and expectations about the continuous expansion of GP by opening up broader channels and launching more diverse incentive activities. However—accumulate GP, and then what?

Whether it is to launch its own governance token or to adopt other economic incentives to meet the expectations that GP provides to users, Infinex still needs to submit a more complete and reasonable answer to users. Therefore, the actual value and potential of GP still need further verification.

Conclusion

The launch of Infinex aims to address the bottlenecks of various decentralized applications in the current crypto market by enhancing user experience, increasing liquidity and market appeal, achieving cross-chain expansion, and strengthening market competitiveness. By simplifying user operations, introducing various collateral and stablecoins, supporting multi-chain operations, and providing a user experience similar to centralized exchanges, Infinex showcases its innovation and breakthroughs.

However, the success of Infinex also requires validation of the effectiveness of its governance mechanisms and incentive measures, especially the actual economic returns of Governance Points (GP) and Patron NFTs. Although the GP point system provides users with the opportunity to participate in governance and earn rewards, its actual value and potential still need further observation and validation. Whether Infinex can submit a well-rounded and reasonable answer for users will determine its long-term competitiveness and development prospects in the decentralized finance space.