2ND Chance by DeFiat — A new way to revive your ‘scam’ holdings!

There is no doubt that the crypto space is growing at a very rapid pace, but no one can ignore the scams that are prevalent in this ecosystem. If we just go back a few years, more than 80 percent of the ICOs were identified as outright scams in a study conducted by the ICO advisory firm Statis Group. 

A little background

The ICO boom happened after the launch of Ethereum, as the Turing complete platform made it possible to launch a token with just a few lines of code. According to Bloxy, one of the leading analytics provider, more than 224,000 ERC20 tokens are launched on ethereum till date, and this number has been growing ever since. 

Source: Bloxy

Most of this recent surge in the growth rate is due to a massive shift towards the DeFi space, that include huge platforms like Uniswap, dominating more than 20% of the Total Value Locked (TVL) in DeFi. 

Uniswap and the ‘rugs’

As you might be familiar, Uniswap is a decentralized exchange that made it much easier to list and offer your Ethereum based ERC tokens to the investors. Being a decentralized exchange, there are no KYC or AML compliance requirements. 

Unlike the traditional ‘order-book’ mechanism, Uniswap works on the principles of Automated Market Making (AMM) coupled with Liquidity Providers (LPs) who contribute to the pool of trading pairs.  

Uniswap is massive! If we just talk about the sheer scale of things, there are more than 22,882 active trading pairs on Uniswap, providing a total liquidity of more than $3 billion. 

However, just like we saw with the ICO boom, the ease of token issuance on Uniswap without the due diligence has attracted a lot of ‘rugs’ or ‘team exit scams’, where a project offers a certain token through Uniswap, investors swap them with their ETH and at the end, the project team runs away with the accumulated ETH and the investors are left with ‘rugged tokens’.

Some people lose their life savings in these exit scams, while some people just accumulate some of these tokens in the fear of missing out (FOMO) on an opportunity. 

If you’re a crypto investor, you might have some useless, worthless tokens sitting in your wallet that you’ve accumulated during the emotional high of participating in an exciting new Uniswap listing, in a hope to get good return in the future. 

Solution — 2ND Chance

There is no place to dump these tokens or utilize them, but not until now! Defiat has launched their new product, 2ND Chance, a breakthrough in the Defi spree with a genuine hope that this product will help the greater Uniswap community.

The mechanism of 2ND chance is fairly simple yet powerful. On a granular level, you can swap your rugged ERC20 tokens with ‘2ND tokens’, that can be later staked in DeFiat farms with a reward for participation. 

As the name of the product suggests, 2ND chance gives you a ‘second chance’ by helping you move on from your bad investments, and utilize worthless and useless tokens that are sitting idle in your wallet. 

How does 2ND Chance works? 

2ND Chance is built on a solid foundation of various DeFi concepts, thus having state of the art tokenomics. 

Dynamic Fee — 2ND tokens have a dynamic swap fee based on the trading volume of the pair, and the fee is dynamically adjusted after every 20 transactions. Lower trading volume means higher fees, and vice versa. However, the fee is capped between 0.8% and 3.6% at launch. 

Yield Farming — Users can swap their rugged tokens with 2ND tokens, and stake them in the farm to generate yields. 

Yield farming is a very novel technique in the DeFi space, and 2ND Univ2LP token allows you to participate and earn rewards. 

Future proof  — The dynamic swap fee is added to the Uniswap liquidity for 2ND/ETH, which increases the value of 2ND tokens with the passage of time. When the users want to un-stake the token, 25% is kept by the protocol and locked.

The team behind 2ND Chance has whitelisted a dozen of rugged tokens on Uniswap, and they will keep adding more trading pairs along the way. The current rugged catalog is showcased below, with a total of 12 whitelisted tokens.

The question arises, how much 2ND tokens will you get in the swap process? There is a simple formula for that:

Amount Given per Swap = function (your balance of RUG / total supply of RUG)

There is also a DFT-Boost mechanism that can increase your amount given per swap by up to 3X depending upon your DFT holdings, e.g., if you hold 200 DFT, you are incentivized to get a +200% bonus! 

The initial supply of 2ND tokens will be limited to 20,000 only, and a trading pair is created on Uniswap using DeFiat’s team ETH. There is also a cap where you cannot swap 2% of the supply of a rugged token at a time, this will discourage whales from minting too much without the ETH fee. 

Conclusion

2ND Chance is the first product in the market that is aiming to provide a utility for those useless and worthless tokens sitting idle in your wallet. It might not cover your entire loss, but it promises to give you something in exchange of nothing! 

It also gives you an opportunity to enter the world of DeFi, and take advantage of the novel concepts like dynamic fees and yield farming. Who would have thought they can utilize ‘rugs’ to do something better? Well, now you can!

(Get hands-on experience with 2ND chance today)