A deep dive into Humanode's BioDefi

Beyond other technological advancements in 2023, Humanode introduced BioDeFi, merging biometric technology with decentralized finance, marking a significant development in the DeFi sector.

A key innovation within the BioDeFi framework is the introduction of Biometric-based Nonlinear Liquidity Staking. It has been widely appreciated by the Web3 community.

Key stats for Nonlinear Liquidity Staking in just a month of its launch:

1. a TVL of $298013.48
2. daily rewards of approx 14,400 WeHMND ($2307.01)
3. an APR range of 100% for $20k staker to 1000% for $100 staker

Moreover, the liquidity depth for HMND on Kucoin (Centralized exchange) shows a +2% depth at $2,330 and -2% depth at $3,474. In contrast, for HMND in the LP staking pool, the +2% depth is higher at $5,326, while the -2% depth is slightly lower at $5,310. This indicates a more balanced liquidity in the LP staking pool compared to Kucoin.

The LP staking model is designed as a countermeasure against the dominance of "whales" and Sybil attackers – individuals or entities that get hold of large amounts of tokens and can influence the market.

In traditional staking models, whales can disproportionately affect staking rewards and governance decisions, leading to an imbalance in the ecosystem.

However, the nonlinear LP staking model levels the playing field by discouraging the concentration of power and influence in the hands of a few. It represents a novel approach in the DeFi space, aiming to create a more balanced and fair ecosystem where each participant has an equal opportunity to contribute and benefit.

To fight Sybil attacks, BioDeFi utilizes onchain biomapping mechanism that uses Humanode's cryptobiometric technology. It encrypts and links facial biometric data to EVM addresses. It aims to create a system where each participant's identity is distinct but anonymized, ensuring that financial transactions are linked to verified individuals, rather than pseudonymous or anonymous entities.

The approach marks a significant shift in how identity and financial transactions are handled in the DeFi space. Using encrypted biometric data as a basis for verification, BioDeFi aims to create a more secure and fair ecosystem, where the identity of each participant is transparent and verifiable, yet private and secure.

Dive in for more details: https://blog.humanode.io/nonlinear-liquidity-staking-on-humanode-evm/