Sergey about building a one-click DeFi asset manager, on top of Ethereum and Polygon, that would enable an easy purchase and getting a yield for already purchased assets.
Disclosure: This article was sponsored by DeHive
Hello! What’s your background, and what are you working on?
Hi, my name is Sergey Onyshchenko, and I am the founder of DeHive Finance. I’ve been a serial entrepreneur and crypto investor since 2016. I also run my own blockchain development company - Blaize, that’s why I know a lot of subtleties about developing blockchain projects and bringing them to the market.
The experience we’ve got together with my fellows from Blaize is priceless. This knowledge helped me correctly assess the development of the whole DeFi sphere and the enormous market boom in 2019-2020. I saw an opportunity and a huge potential in this industry and wanted to bring a truly valuable product to life. This is how I came up with the idea of DeHive.
DeHive is an in-house product of Blaize - a blockchain development company that I also run. Therefore, the team behind DeHive is not anonymous, and anyone interested can check our background and see the whole way we’ve gone through in the cryptocurrency market.
DeHive is designed to be a smart and convenient DeFi asset manager that brings two of the most valuable and rare features in the modern DeFi - security and continuous portfolio growth. Thus, we call it a one-click tool that can be easily accessible and adopted by anyone.
What’s DeHive’s backstory?
Having gained a lot of experience from developing Blaize, we were aiming big. Our ambitious goal was to create a project that would bring value to the DeFi market and the whole crypto community.
In 2019, we started brainstorming ideas for an in-house project that could really have some influence. Eventually, we focused our attention on the market of DeFi assets management and crypto portfolio management since it was only emerging at that time.
After numerous discussions and hackathons, we’ve created DeHive, the hive of crypto assets that took its final shape in 2020.
What went into building the DeHive?
Taking some previous experience, we were able to develop an extensive scope and detailed pipeline for the project delivery.
We chose Ethereum as DeHive first blockchain due to its wide DeFi ecosystem and convenient environment for development. Ethereum’s ready-made list of tools and in-built features help the development team deliver on time and adjust some new technologies fast, so it only took around 2 months to release the DeHive beta.
Yet, the cryptocurrency market is very dynamic and variable, so sometimes, you need to make decisions quickly and think ahead. Our analytics and business development team work non-stop, so when we saw the opportunity in the Polygon ecosystem, we turned our attention to their market as well. That is how we became the first multi-chain DeFi asset management protocol in 4 months.
Now, DeHive is based on two blockchains - Ethereum and Polygon. It also has two main Clusters with the staking and yield farming enabled so that the user can assemble the Cluster, stake it and start earning the profit in a few clicks. In accordance with the current TVL, the APY for the Poly Cluster farming plus DHV incentives is 312%. This model is way more profitable and convenient due to risk diversification and higher interest rate in comparison to direct farming.
In addition, DeHive gives the opportunity for DHV solo staking with an average APY of 21.04% and enables QUICK-DHV LP token staking provided by our strategic partnership with QuickSwap.
Security has always been and will always remain our top priority. Being a few years in crypto and DeFi, I saw several vicious hacks, which led to enormous losses. This made me double-check every line of the code and think through every decision we make for hours and days.
And for the same security reasons, DeHive has partnered with Zokyo from the very start of our development. Zokyo is a US-based team of high-class security auditors who take care of the DeHive platform’s general security and attack resistance improvement. However, one audit is never enough, so we arranged the second one done by the Hacken team before the mainnet launch for a smooth and safe work of our platform.
What’s your business model?
Speaking about the funding, we can’t exclude our own outsource development company Blaize, which gave us an opportunity to develop DeHive for several months and hire the most brilliant developers in the industry.
We are currently developing and aggregating yield farming strategies to provide the best APY for Cluster users. The smallest part of the APY will be taken as a product maintenance fee and distributed for different purposes depending on the situation on the market, including buyback of our native DHV tokens, cluster pools funding, and development. Also, there are some fees for internal protocol actions which cover the overheads on managing the platform.
What helped us a lot is that our community has crowdfunded the DeHive project, allowing us to implement new features that help us stand out among such competitors as Indexed, DeFi Pulse Index, and others.
Most other similar projects are entirely based on Balancer’s AMM pool model for several tokens. The pools have their own price curve and rebalancing mechanism adjusted to price fluctuations and, in some cases, the mandatory inclusion of a native token. Also, farming technology is not implemented on the underlines of the index itself. That’s why, at the moment, DeHive is the only crypto Cluster that works to make a real profit from DeFi and not just push its tokens.
When developing the idea of DeHive, we wanted to combine two possibilities - a simple and convenient purchase of a well-developed DeFi portfolio and getting a yield for already purchased underlines. Basically, DeHive platform is the perfect choice for people who don’t want to spend a lot of time and effort to discover and use different protocols but want to generate yield in the most effective and safest way possible. That’s what DeHive offers to the world.
What’s your position on the regulatory landscape today?
The idea of building DeHive was born around a year ago, and the cryptocurrency market has experienced a real revolution since then. Yet, the regulatory landscape for crypto-based projects still remains uncertain for a large list of countries.
In terms of the DeHive legal operation, we have got several legal opinions claiming that our token is a “utility token” based on our tokenomics and whitepaper.
What are your goals for the future?
We designed DeHive to be an authentic and indispensable product that brings real value to the current DeFi market and the future of the industry. The decentralized world is growing rapidly, so more and more traditional financial instruments and products find their reflection in it as well. I personally find portfolio management tools that help diversify risks very promising, and we plan to continue the development of the DeHive platform, its expansion to other chains, and improvement of Cluster yield farming strategies.
One of our main goals, for now, is to partner with every project integrated into DeHive clusters to create a reliable ecosystem around.
What are your future thoughts for the DeFi market?
As I’ve mentioned before, the DeFi asset securing and diversification is about to become the main concern for the majority of projects out there, so I feel like this sphere will experience a big transformation. I also think that DeFi derivatives are in the nascent stage right now but will be more developed soon.
The NFT market also has great potential. At Blaize, we constantly receive requests to develop NFT-based platforms or related technologies, so it seems that the market will definitely develop even more in this direction by the end of this year.
Where can we go to learn more?