Game Report: DeFi Kingdoms

Bitcoin Talk and Cryptocurrencies Crypto Gaming and NFTs
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Built on the Harmony Network, DeFi Kingdoms is a DeFi game built on the blockchain, designed with NFTs.

JEWEL is a utility token that allows users to purchase NFTs in-game to increase stats. It is also used for liquidity mining so you can earn more JEWEL through staking.

JEWEL is also a governance token that gives holders a vote in the growth and evolution of the game.

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DeFi Kingdoms (DFK) has taken the cryptocurrency world by storm, accumulating over $1B total value locked (TVL) in less than 4 months.

The token price surged from $1.23 to an all-time high of $22.52. At the time of writing, JEWEL is trading at $7.84.

What makes it so popular? Not only is it a play to earn (P2E) game that’s fun, but it also:

  1. Serves as a popular decentralized exchange (DEX) which allows users to swap for other coins on the Harmony network. This means the game generates revenue from users that trade coins on its platform.

  2. It’s s a decentralized finance (DeFi) platform where users can profit from the current $JEWEL liquidity.

How the game works

The gameplay mechanics aren’t overly complicated.

To play the game you’ll need a hero in the form of an NFT, which can be bought from the Tavern, the game’s marketplace.

Here, you’ll find heroes to purchase or rent. Once you have a hero of your own, you can visit the Tavent tosell it or generate some ROI by renting it out yourself.

Here’s a look at some heroes for sale in the tavern:

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Heroes are randomly generated, with various stats and professions. For example, they can be miners, gardeners, foragers, fishers… And as you carry out these tasks with your heroes, you get items that can be used to level up your character and then be sold for $JEWEL

DFK Project Roadmap

DFK has a fairly promising roadmap. The two largest undertakings are a cross chained decentralized app (dApp) and adding a battle system for PVE (“player vs. environment”) and PVP (“player vs. player”).

They have a lot more things planned, and you can check out their official roadmap here.

Strengths:

  • Fast-growing game in crypto right now, second only to Axie Infinity
  • Also serves as one of Harmony’s largest [decentralized exchange (DEX)
  • DeFi platform - players can easily stake $JEWEL in the bank and engage in liquidity pools.
  • Browser game makes adoption easy
  • Exciting roadmap to add to and improve gameplay
  • Plenty of decisions and activities for players of all levels
  • “Play 2 Earn” (P2E) is an extremely attractive mechanic for those who like to game
  • Gameplay tokenomics is easy to understand
  • Playable heroes with various stats, traits, and professionals are in the form of NFTs
  • Cross-chain plays to another popular chain, Avalanche
  • Extremely cheap gas fees

Risks of $JEWEL:

No project is perfect, and DFK is no exception. While it has rapidly grown in the past ~5 months since its conception, it is a new project which leads to further risks.

First, the gameplay is still being developed. There are still some rare bugs, so if the gameplay (most of which is not yet completed) is not executed well, then this will severely negatively impact engagement and users.

Another risk is that the team is fully anonymous. That means they could technically just take everybody’s money and run without anyone knowing who they are. While it doesn’t seem likely for such a mature and serious project, it’s still a risk.

Finally, with any software, there is a risk of hacks, bugs, and exploits. Plenty of projects have been hacked, often resulting in losing millions of USD in cryptocurrency. New projects haven’t been around as long and are therefore may not be as safe as older projects.

DFK has been audited, and you can review the results here. DFK passed all of the “external threat results” tests that Solidifi, the 3rd party auditor performed. While that is certainly a good sign, no software project is guaranteed to be free of software risks.

Weaknesses:

  • A relatively new project, launched in August 2022
  • Development is still in progress
  • The team is fully anonymous
  • Contract risks (hacks, bugs, exploits)

Competition Analysis

With DFK’s rapid rise, it’s often compared to Axie Infinity, the most popular game in cryptocurrency.

Axie Infinity is on the Ethereum network and has a market cap of $3B on CoinMarketCap.

According to Coin Market Cap, DFK claims a current market cap of $492M at the time of writing.
This means that $JEWEL can go up to 6x if it reaches Axie Infinity’s current market cap.

There are a LOT of ifs here. Crypto gaming and play-to-earn are both new models. There are no predecessors that have achieved the scale of these games.

Also, DFK itself is still new; DFK has only been live for six months while Axie has been live for almost 4 years. We don’t know if DFK can reach Axie Infinity with so much of the game yet to be released,.

How to Purchase $JEWEL:

  1. Buy Harmony ($ONE) on a CEX such as Binance, Kucoin, or Gate.io
  2. Install MetaMask wallett
  3. Add Harmony network to your MetaMask wallet
  4. Send $ONE to your MetaMask wallet
  5. Go to https://game.defikingdoms.com/​
  6. Create your profile (takes 1 minute), making sure you give the app permission to interact with your wallet. It’ll come in the form of a pop-up like all MetaMask approval notifications
  7. Navigate to the Marketplace
  8. Talk to the Druid
  9. Exchange $ONE for $JEWEL
  10. Add $Jewel to MM by going to https://www.coingecko.com/en/coins/defi-kingdoms/, hover over the fox face icon and click " Add to Metamask "
  11. You now own $JEWEL and can see it in your MetaMask wallet
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Hi @Cryptopotamus,

I first read this as “There are still some bare rugs” LOL.

I did not see you post this before I updated my previous post on DFK - I will link this post to my other post on same topic.

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DeFi means Decentralized finance an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. It eliminates the fees that banks and other financial companies charge for using their services. You hold your money in a secure digital wallet instead of keeping it in a bank.

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thanks for this

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THE PLOT THICKENS - a real world application of “The Wisdom of the Crowds” estimation.

@dushimes, @darthdimsky - this will probably interest you both.

If anyone has followed this thread, they may be aware that the highly successful DeFi Kingdoms, run on the Harmony (ONE) ecosystem, will expand cross-network to Avalanche in Q1, 2022, with a subsequent impact on the Harmony DeFi Kingdoms (Serendale). The Avalanche version of the game will be called Crystalvale.

The link below is to a YT video. Owners of Jewel (the game’s base token) are to be rewarded with airdropped Crystal tokens, of a quantity that represents the owners’ allocation of his funds into the Serenvale bank (Jewel), the Serendale Gardens (as Jewel / other liquidity pairs), and the value of his NFT “Heroes” with an additional airdrop quantity related to the Experience level (XP) of each Hero owned.

The video explores the potential future price effects on both Jewel and Crystal, of the airdrop to existing gamers, and the restricted availability of Crystal, that can only be purchased via Jewel.

Understanding what the author is trying to achieve is helped if the reader has read “The Wisdom of Crowds” by James Surowiecki, AND Super-Forecasting by Philip Tetlock and Dan Gardner. I have read both, and consider these to be a fundamental tool in a trader’s arsenal of knowledge.

Even with the knowledge from the books, and a significant experience within the DeFi Kingdoms game, it is hard to follow. But it has influenced by future strategy planning for what I do with our ONE and Jewel holdings in the next few months, not to mention that I am working overtime on making sure my Heroes go on most of the quests available especially up to 14Feb22 which is the deadline for the snapshot of Jewel holding as LP and as Hero (esp. Heroes with high XP).
Enjoy, but put your financial brain in gear before watching.

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That’s an exiting move. I’m a big fan of the Avalanche network. I think SOL has lost some love, and FTM hasn’t hit the mainstream as the larger cap L1s.

So great move for DeFi Kingdoms.

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TBH, I’m more interested in the consensus driven analytical approach the guy in the video has taken. It’s really interesting how he makes the census data and tries to ascertain how they hold up with the estimates given by the game dev.

Didn’t watch the whole video (intend to later today) because I was getting a bit lost by some of the crypto terminology. I don’t read up or follow anything crypto related so it’s a bit difficult to understand at times. Plus, without the contexts of the two books you recommended I’m probably more lost.

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Yes, there is too much “game-defined” acronym usage in his presentation. After reading Super-Forecasting about two years ago, I am looking forward to the reinstatement of our local Forex trading group here in the UK. Just before I bought the book one of the members referred to it as a basis on which we should form a small investor / trader group. If I recall properly, the author was originally funded by US military (perhaps psyops) to set about measuring whether a group of selected predictors could do better as a group than as individuals. The result was something like this. If you already have identified folks who can get it right / wrong on a 60/40 basis, then selecting members with similar skills results in an almost 10% increase to 70/30. As I near retirement, such interests inspire me to write a plan based on super-forecasting and taking decisions based on ordinary folks who may be able to get it right just over 50% of the time, and be able to act as a single group. There is no reason this needs to be limited by geography. I have been project-managing global groups for over 20 years, and with modern tools like MS Teams (the collaboration tool I have the most experience with), there is ample scope to share documentation, strategies, plans, results and potentially host live trading sessions worldwide.

In fact, a few months ago, I tuned into a “live xrp pump” hosted by a young American. It was one of those days that XRP was pumping strongly (like last Monday), and the experience was extraordinary (for me, anyway). The guy just sat there waiting till the end of an hourly (also the four-hourly) candle, and literally said two minutes before the candle close “right on the hour watch the directional move of the price, and buy/sell in same direction”. The price action in the next 2 to 3 minutes was about a 3% move. That is when I thought "OK, that would be a great hobby, if you could know what conditions needed to be in place to observe such volatile (and presumably repeatable) price action. One for the future, methinks

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Have you considered doing a YT channel to perhaps VLOG some of the projects or ideas you’re working on? Because I genuinely don’t think a few forum posts can do justice to your thought process. I honestly hope I manage to stay curious and open minded as you do when I get to your age one day.

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Hi @darthdimsky,

I tend to throw myself in at the deep end. When we were accumulating a property portfolio I was a very regular contributor to a well known property forum. I recognize that many people find hosting a YT channel very addictive, but I don’t wish to be famous, nor infamous, in a public sense. You are one of the minority of deep and original thinkers for whom I write a lot on public forums (fora?), and realize that my content is not for the masses. I get a great deal of satisfaction out of knowing that some people value my content, and that doesn’t need to be a mass of people. About the best compliment I ever received from anyone was from my direct line manager on a recent contract. He said he always looked forward to my “thought leadership”. I had never thought of myself as a thought leader, but on reflection, maybe that is why I enjoy my paid consultancy so much. In the vast majority of cases, I get to experiment with methods, approaches and fit-for-purpose solutions to a stated problem. You don’t get that stuff out of a book, but you get to experiment by combining best practice from many past assignments and a great deal of variation in your chosen assignments. No - I’d far rather try to get together a like-minded group of 5 to 10 individuals that try to influence a million YT watchers. Good of you to suggest though. :blush:

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The best thing about gaming setups is that you can customize them according to your demand and need. You are the CEO of your gaming setup, and only you have the right to change anything you want. The RGB lights, power, specifications. It all depends on the user and his budget.

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