Can rhino.fi (DVF) make money from a DeFi Aggregator?
rhino.fi (DVF), the protocol formerly known as Deverse.Fi, calls itself a DeFi aggregator.
A DeFi aggregator allows to access through multiple decentralized finance (DeFI) protocols in one location. Moreover, many DeFi aggregators operate on multiple blockchains, for example, Ethereum (ETH) and the Binance Smart Chain.
Speculators use DeFi Aggregators because they allow a person to trade on several decentralized exchanges and invest in multiple liquidity pools. The hope is DeFi aggregators will help speculators find the best prices for synthetic assets. Additionally, DeFi aggregators can help speculators earn the best annual percentage yields (APY) on liquidity tokens and other assets.
What is rhino.fi?
Ultimately, rhino.fi (DVF) is a decentralized app (DAPP) built to connect blockchains without complex bridges or network switches.
Rhino.fi functions as a self-custodial multi-chain DeFi platform that operates a Layer 2 on the Ethereum blockchain. To explain, a Layer 2 is an extra layer of a blockchain built onto a blockchain to perform certain functions, such as connecting to other blockchains.
Hence, rhino.fi offers a short-cut around the Ethereum blockchain that can reduce costs from Ethereum gas fees. Users pay gas fees for access to the Ethereum Virtual Machine (EVM). The EVM is the digital computer that runs Ethereum. Without EVM access protocols cannot operate on the Ethereum blockchain. Hence, rhino.fi can offer lower-cost access to the Ethereum blockchain.
They built rhino.fi with a validation engine, or roll-up, that bundles transactions and processes them in bulk. This allows rhino.fi to process hundreds of transactions at once. The roll-up uses zero knowledge proofs which allow rhino.fi to process transactions without verifying individuals’ identities. Hence, rhino.fi protects privacy.
The hope is that rhino.fi can allow users to swap cross-chain tokens and native Ethereum tokens in seconds. They claim rhino.fi provides deep liquidity to give users the best prices on transactions.
Beyond swaps, they claim rhino.fi enables instant trades at current prices. Interestingly, rhino.fi offers both Automated Market Maker (AMM) trades and order-book trades. Hence, rhino.fi offers both centralized exchange (CEX) and decentralized exchange (DEX) trades.
rhino.fi investments
To explain, a CEX uses makes trades at set or order book prices. In contrast, a DEX uses an AMM protocol to set prices automatically. Theoretically, an AMM helps speculators get the best prices fast. rhino.fi users can build and implement their own automatic trading strategies by constructing rhino.fi application programming interfaces (APIs).
They claim investors can generate passive income by investing in yield bearing instruments such as liquidity through rhino.fi’s DeFi aggregator. Users can deposit tokens, assets, and fiat currency from the Arbitrum (ARB), Polygon (MATIC), Ethereum (ETH), and Binance (BNB) blockchains in rhino.fi’s ecosystem.
Rhino.fi can help investors collect a flat annual percentage yield (APY) once a year. Theoretically, this APY can serve as a passive income similar to bond or savings account interest.
Multi-chain Smart Contracts
Smart contracts are code written into a blockchain that execute the terms of an agreement.
Hence, a smart contract is a self-executing agreement. In essence, a smart contract is a digital robot that performs a tax. For example, the smart contract in the Tether (USDT) stablecoin makes payment in US dollars when you spend Tether.
rhino.fi offers multi-chain smart contracts that can operate on different blockchains. For example, an Ethereum smart contract that makes payment in USDT on the Binance Smart Chain. rhino’s multi-chain smart contracts use StarkWare routers to bypass the blockchain and conduct transactions.
Theoretically, multi-chain smart contracts and StarkWare can allow faster transactions by eliminating the need to build chains between blockchains. The multichain contracts power rhino.fi’s DeFi aggregator by allowing it to conduct transactions on several blockchains at once.
rhino.fi due diligence and token analysis
rhino.fi (DVF) uses CoinGecko and ParaSwap to conduct token analysis for due diligence.
The hope is to determine if tokens and crypto assets are genuine. To that end, rhino.fi only uses tokens with visible market caps. A visible market cap shows Mr. Market pays money for the token.
Other data, rhino.fi uses include the number of on-chain token holders, rates of slippage, and details of smart contracts.
What Value does rhino.fi (DVF) offer?
Mr. Market gives rhino.fi (DVF) some value. For instance, CoinMarketCap ranked DVF #725th and gave it a 62.93₵ Coin Price on 23 February 2023.
Additionally, CoinMarketCap gave rhino.fi a $15.168 million Market Capitalization, a $62.817 million Fully Diluted Market Cap, a $68,635 Centralized Exchange (CEX) Volume, and a $68,632 24-Hour Market Volume on 23 February 2023. They base those numbers on a Circulating Supply of 24.147 million DVF, and a 100 million DVF Total Supply.
In contrast, rhino.fi was CoinGecko’s 1,108nd ranked cryptocurrency with a 63.33₵ Coin Price on 23 February 2023. CoinGecko gave rhino.fi a $7.691 million Market Capitalization, a $63.638 million Fully Diluted Valuation, a $70,092 24-Hour Trading Volume, and a $20.460 million Total Locked Value (TVL) on 23 February 2023. They base those numbers on a 12.086 million Circulating Supply, and a 100 million Total Supply.
I think rhino.fi offers some interesting financial technology. Unfortunately, I cannot see how rhino.fi differs from competing protocols such as Uniswap (UNI), QuickSwap (QUICK), and Horizen (ZEN) .
Consequently, I think rhino.fi’s value is small because its technology is not original. Therefore, I think speculators need to avoid rhino.fi because its earnings capacity seems small.
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