The cryptoeconomy is still very young, and with that dynamic comes the reality that there’s still no shortage of room for upstart projects to make headway into the space.
The key for these projects? To offer innovative solutions that crypto users actually want and need right now. The Hong Kong-based Walletreum project, a crypto-asset management tool suite, is one such newcomer effort that’s trying to pick up the mantle here.
What Is Walletreum?
Walletreum isn’t a single solution, but rather it’s structured like a crypto Swiss Army Knife and offers a range of tools and applications. Some of the young project’s flagship features currently include:
Crypto lending powered by Walletreum’s proprietary ALGON AI
Borrowing via SAFE CREDITS
Yield farming of the project’s native WALT token, plus WALT staking
Free off-chain swaps on ZeroSwap
Let’s breakdown each of these offerings to get a better sense of what the wider Walletreum suite brings to the table.
Lending with ALGON
Lending is one of the hottest sectors in the decentralized finance ecosystem this year, and the Walletreum team approached the arena by creating its own specialized lending bot, ALGON. The system works like so:
Users deposit crypto assets to ALGON, an algorithmic fund manager.
Per backtesting, ALGON has a “track record of … 4% to 6% per month returns in a bear market and 2x to 5x per month … in a bull market” according to Walletreum’s whitepaper.
At this point, users sit back while ALGON does its work and until they’re ready to withdraw their assets.
During bear markets these users can withdraw in stablecoins or in cash to their banks, while in bull markets they can withdraw in their originally deposited crypto.
When it comes to markets turning ugly ALGON is designed to mitigate losses before they become extreme, as the project’s whitepaper also explains:
“[A]ny asset you lend at Walletreum will not depreciate more than 9% of the deposited asset value in the bear market. If any lent asset falls 10% or more, then ALGON will quickly reassess the situation depending upon current market stats and try to minimize the losses as much as possible. IF the market drops 10% in lent asset value, then lent crypto asset value will be depreciated 1% at the end of the lock period and so on.”
Borrowing with SAFE CREDIT
Next up on Walletreum’s feature slate is borrowing, which is also powered by ALGON and the project’s SAFE CREDIT system.
Simply put, Walletreum’s SAFE CREDIT product is a crypto-backed loan offering. It allows users to borrow up to 97% against their crypto for 4.3% interest annually. Other selling points of the service include:
No credit checks
No KYC registrations
Loans are payable via any asset available on Walletreum
Fixed interest rate
Loans can be partially returned early
WALT Farming and Staking
WALT, an ERC-20 token on Ethereum, is the native currency of the Walletreum suite.
To bootstrap the crypto management suite in its earliest days, the project’s creators are running a WALT yield farming campaign to reward their inaugural supporters and win interest over to the app.
Similar to farming campaign’s we’ve already seen in DeFi this year, Walletreum will be splitting its WALT rewards 50/50 between the project’s borrowers and lenders. For the duration of the program, the team will be distributing 4,500 WALT tokens per day on a pro-rata basis.
Moreover, according to Walletreum’s roadmap the project is aiming to roll out WALT staking in Q1 2020. Once that feature is live, WALT stakers will strive to earn their fair shares of the 5 million WALT set aside for staking rewards for the foreseeable future. 45% of this allocation will be distributed in the first year, 35% in the second year, and 25% in the third year.
Here, it’s also worth mentioning that Walletreum has teamed up with Ferrum Network to tap into the project’s Flexible Staking service, which allows any ERC-20 token to be locked in to earn rewards.
WALT Tokenomics and Utility
To understand where the WALT token could be heading, we need to understand how it looks from a bird’s-eye view. Accordingly, WALT’s tokenomics are as follows:
50 million total WALT supply
Initial circulating supply of 16 million WALT
The totally supply will be distributed with 30% going to staking/listing/and liquidity provision; 18% to Walletreum’s company reserves; 16% to the token’s public sale; 12% to a pre-sale allocation; 9% to the Walletreum team; 7% to marketing efforts; 4% to advisors; and 4% to a strategic sale allocation.
Notably, the crypto management startup completed its pre-sale offering on September 7th, 2020, and its public sale one week later on September 15th. The public sale of 8 million WALT tokens was slated to occur across 72 hours, but the allotted tokens sold out within 7 hours.
As for the WALT token’s utility, holding 1,000 WALT tokens unlocks a series of special features for users, including:
Exclusive access to WALT farming
Exclusive access to ZeroSwap
Exclusive access to the ALGON X3 Package
20% discount on Walletreum borrowing fees
0% fees on lending position exits
0% withdrawal fees
Walletreum is a suite of crypto tools, and ZeroSwap is the service’s in-house crypto-to-crypto exchange, which lets users “quickly and easily swap one crypto asset foranother without paying any transaction cost.” As the project’s team has previously explained:
“Users can keep swapping their assets inside the platform based on the current prices that Walletreum fetches from multiple oracles. All the swapping will happen in the internal pools of the platform with virtual asset-backed tokens. Walletreum saves tons of gas fees for a high number of swaps.”
Right out of the gate, the crypto assets supported by ZeroSwap include ETH, BTC, WALT, EOS, USDT, and BNB, but there’s no reason to think more tokens won’t be added added going forward.
The Walletreum Roadmap
As Q3 2020 nears an end, the last thing Walletreum’s working on for this quarter is getting the WALT token getting listed on crypto exchanges.
Then during the final three months of the year, Walletreum will be focusing on rolling out the various utilities associated with the WALT token, like WALT farming, and integrating new crypto assets into the Walletreum ecosystem.
2021 is going to be another year of ramping up for the project.
In Q1, WALT staking is set to go live and the Walletreum team is aiming to launch a fiat-to-crypto ramp and a WALT balance debit card. In Q2, the project is rolling out mobile support for Android and iOS (and thus Google Pay and Apple Pay).
In Q3, work on a hybrid liquidity aggregator system will kick off, whereas the end of 2020 will see the Walletreum team working to integrate ALGON within its exchange.
If the upstart crypto-asset management suite can follow through on these milestones, it has a chance to go from unknown to actively used in regions around the world.
Crypto projects come and go, and it can be really hard to pick winners and losers without the benefit of foresight. That said, Walletreum has some of the key ingredients any project needs to go the distance, and those ingredients come from the team’s focus on servicing users with attractive offerings.
If the creators can continue to use this focus as their North Star, then their solution certainly has a fighting chance to become a tool suite of note in some DeFi circles. In the meantime, we’ll have to see how the project grows from here.