…And What it Means For Your Investment
Today I want to look at the recent changes happening at Wolf Capital, the popular defi investment platform. They’ve made a significant shift from fixed returns to variable returns, and I’m here to break it down for you.
The Announcement
First I’ll look at the announcement from the developer team. Wolf Capital is primarily run by Trav and 0xOurea; I have previously worked with both of these gents in their various projects and, from my experience with them in those previous platforms, I rate them both highly.
So, according to their announcement, Wolf Capital decided to expedite its move to variable dividends. They explained that while they initially tried to maintain the fixed 1.1% daily ROI to avoid this change, it proved unsustainable in the long run.
The halt function of the contract has been triggered to allow time for necessary updates. This obviously was met with some disagreement or complaint, but ultimately it was the best way to save the project and make it sustainable going forwards. In fact, a lot of the current investors have said they would have preferred this model from the start.
Unstaking and Closing the Gap
Investors will have the opportunity to unstake their funds at the current backed percentage this week. The team aims to close the gap between the invested amount and the available funds, ensuring that everyone is treated equally. Transparency is a key focus, with live trading accounts being shown and third-party audits planned for balance sheets.
What is “The Gap”?
The gap, a concern raised by the team, refers to the difference between the money invested and the funds available for trading. The act of paying out 1.1% to every investor every day allowed this gap to increase dramatically over time; this gap has been estimated to be around $2.5 million.
The Next Steps
Wolf Capital’s aim is to close this gap and ensure that all investors receive their due. By implementing variable returns, they can back all stakes at 100%. The plan involves withholding 20% of gains to close the gap, calculated on a per-day basis and multiplied by the number of days staked.
This means that ultimately the platform will be 100% non-ponzi which is a goal that most investors are looking for and will support.
Unstaking and Moving Forward
Wolf Capital expects to resume operations fully within the coming days with injections starting on July 17th. Investors will be able to request unstaking of their funds this week.
However, due to the gap, the amount returned may be less than the initial investment. While this may initially seem concerning, it is crucial to remember that the project aims to make everyone whole over time.
Investor Opinions
Investors have expressed mixed opinions about these changes. Some have decided to unstake their funds, preferring to receive a portion of their investment back. Others believe in the transparency and long-term sustainability of the project. They trust the team’s efforts to close the gap and acknowledge the challenge of achieving consistent returns.
Looking Ahead
Wolf Capital has introduced NFTs and copy trading features. They are changing the profit payout frequency and have implemented a 10 million cap on staking. Additionally, they have removed the referral system and plan to introduce a casino in the future. All of these steps will strengthen the sustainability of the project.
It’s an exciting time for the project, with updates and improvements on the horizon, you can access the Wolf Capital dapp here.
The transition from fixed returns to variable returns at Wolf Capital brings both challenges and opportunities, like any major changes in a situation. It’s important to consider your own investment strategy and do thorough research before making any decisions. While the project undergoes changes, it strives for transparency and aims to close the gap to ensure a sustainable future.
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