Cryptocurrency is a new global economic revolution that aims to dismantle traditional economic monopolies. Fiat money is the government-issued currency and therefore is subject to inflation. The CrudeOil Finance team decided to build a deflationary currency on top of the Binance Smart Chain (BSC) network to counter this problem.
Originally, crude oil is a natural petroleum product made up of hydrocarbon deposits and other organic elements. It is refined into usable products such as gasoline, diesel, and a variety of other petrochemicals. Since it is a non-renewable resource, which means that it cannot be replaced naturally at the rate people consume it, i.e. a limited resource. Inspired by this well-known concept, CrudeOil Finance creates a crypto asset designed for the economy of DeFi, whose supply is limited and decreases over time.
CrudeOil Finance is basically a Yield Optimizer, an automatic solution that ensures the best returns for the users. They have decided to generate tokens with unique names: $OIL, $DIESEL, and $CRUDE.
The project builds their ecosystem around $OIL. Holders have a chance to stake/farm their Binance Smart Chain assets (BEP20) and get $OIL rewards. After getting positive feedback from users and the community, they launched a second token targeting the NFT market called $DIESEL which is a fixed supply token. $DIESEL does not have a burning function and no burn mechanism is implemented. Hence, it can be listed on a centralized exchange. $DIESEL will be the intermediate for buying and selling NFTs on their upcoming NFT marketplace. Both tokens play a massive role in the yield farm optimizer; both holders and stakers can benefit from holding $OIL and $DIESEL.
The latest token to be launched is $CRUDE. $CRUDE is the amalgamation of $OIL and $DIESEL. $CRUDE is the native governance token, where users can directly take part in the decision-making process by holding $CRUDE and staking that token.
There is no token sale or pre-mining activity for $CRUDE. Instead, $OIL and $DIESEL holders will be compensated for holding those tokens. The $CRUDE allocation for marketing and exchange listing activities will be similar to that of $OIL and $DIESEL. The entire balance will be distributed as staking rewards. Investors are able to swap their $OIL and $DIESEL to receive $CRUDE on Pancakeswap from the 21st of July, 2021.
The merge of the two tokens helps the project achieve convenience, easy listing on exchanges, administrative benefits, and most importantly deliver combined benefits to its community members.
Name: CrudeOil Finance
Network: Binance Smart Chain
Smart contract: 0x8db702D9d561921C45Be8DF38830A653e4BC0299
Total supply: 30,000
Max supply: 100,000
CIrculating supply: 15,000
Pancakeswap liquidity: 5,000
Marketing and Exchange Listing (Vested over 2 years): 15,000
Staking rewards: 70,000
Normally, traditional staking gigs require an infinite supply; new tokens are minted gradually to encourage users to continue staking or farming activities. This inflationary staking causes a lot of sell pressure and diminishes the value of the token. CrudeOil is different from other types of traditional staking. At the beginning of this project, CrudeOil Finance launched a deflationary token called $OIL. Since The supply of minted tokens is only 100,000 $OIL and a portion of each transaction is permanently burned,, the total supply will keep reducing and lead to the sustainable value of the token.
Inflationary, government-issued currencies have long dominated the financial system, and understanding the repercussions is critical. For instance, the capital market in the United States operates on an inflationary model. Every year, money is purposefully poured into the system, and central banks have the right to deflate or expand the money supply. It is the state of an economy with free-flowing cash (a spending economy) since it allows the consumption of cash.
However, a deflationary mechanism does not operate in this manner. In the case of deflationary cryptocurrencies, the investors have complete control over their cash, and the amount of money minted is limited. A deflationary cryptocurrency is one that has a decreasing supply. Deflation can be achieved in many ways, including burning, buyback and burn, buyback and hold, and so on.
Deflationary cryptocurrencies are not affected by market volatility, therefore their value will not depreciate, and investors who participated in initial coin offerings (ICOs), initial exchange offerings (IEOs), initial DEX offerings (IDOs) will be unaffected.
To attract more investors, a project may pledge to buy back coins and send them to an address with an inaccessible private key. This takes place after all of the coins have been released, driving up demand for the coins, resulting in a value increase.
Noticeably, CrudeOil Finance has hired three external auditors to perform the audit: RD Auditors, Tech Rate, and Certik. They are all audit giants and promise to give the investors confidence in their deliverables.
The old OIL and DIESEL holders: 10,000
Building a strong community is the priority of CrudeOil Finance. Since the inception, they have launched several marketing campaigns focusing on users’ engagement and interaction with support from BSCPleb, ChonkGangsta, Kdot, Axel. Besides, they concentrate on local communities, partnerships, and other community development campaigns such as AMAs, Quizzes, games, and knowledge sharing sessions. Some honorable partners of this project include LaunchZone and BSC Army, two strong BSC communities.
With deflationary functions built in the immutable BSC contract, the supply of CrudeOil Finance’s token will keep going down in many other yield farming and staking projects.
Writers’ opinions are solely their own and do not constitute any financial advice, investment advice, or trading advice. BSC Army strongly recommends that you do your own research and seek professional advice from a financial advisor where appropriate.