Thread by @mohakagr

(1/n) Incentive programs have become the go-to growth hacks for Layer 1s.

Last night, @harmonyprotocol introduced their incentive program worth $380M to throttle adoption.

In this thread, I dissect the program and unravel the growing $ONE DeFi ecosystem.
open.harmony.one/300m-on-bounti…

(2/n) First, let's take a closer look at #Harmony.

The core vision for the chain is to allow devs to build products on Harmony and scale them across chains. It enables horizontal scaling via uniform sharding and achieves 2-sec finality with tx costs as low as 0.0001$.

(3/n) Now that the fundaments are out of the way let's dig deeper into the program.

Compared to incentive programs by #Celo, #Avalanche, and #Fantom, Harmony's program is far more detailed, with an explicit focus on achieving PMF and ecosystem growth.

(4/n) The thesis for the $380M Treasury will include various facets for devs to:

1. Build: generous pay for developers & creatives toward impacts;
2. Play: small budgets but many experiments in short timeframes;
3. Talk: strong guidance & peer feedback in open forums.

h/t @stse

(5/n) $180M out of the $380M will be used to fund 100 DAOs, 1000 bounties, 10 partners, 100 grants, 500 launches, 50 investments, 10 hackathons within the next 12 months.

Oh boy! That's a lot of eyeballs.

(6/n) The leftover budget ($200M) will remain with the treasury for use over the next three years. The fund will further engage with @gitcoin, @defialliance, @nowdaoit, University of Wyoming, and HashKey to discover growth opportunities.

(7/n) Let's explore the defi ecosystem.

The official Horizon bridge (bridge.harmony.one) is the easiest way to enter the ecosystem. It has a simple interface with clear steps depicting the transaction stages when porting tokens between networks. (ETH <> ONE <> BSC)

(8/n) Another benefit is that Harmony is EVM compatible making it easier to use MetaMask - which we all clearly love. There is also the official Harmony Wallet.

Fun fact: @MetaMask is the largest non-custodial wallet, with over 10M MAU - that's an 1800% YoY growth. 🤯

(9/n) Now that we are in the ecosystem, it's disappointing to see not many unique use cases considering the faster network finality.

Harmoney has several native DeXes, Farms, NFT collectibles/marketplaces, and DeFi hubs.

Let's explore them.

(10/n) Most of the DEXs look a bit like forks of Uniswap or PancakeSwap.

@VenomDAO is the most sophisticated one, with a detailed bunch of functionalities.

The others include @SonicSwapIO @OneSwap @mochiswap

(10/n) Next, farms.
We love farms, and on Harmony, there are plenty of them.

@piggybankhrc is relatively innovative offering unique integration with limited edition Pig NFTs that may allow for future access.

The others include:
@fuzzfinance
@beefyfinance
@RainFinance

(11/n) Speaking of NFTs, Harmony may be favorable in the long-term considering easy cross-chain access. They are also building a multichain NFT wallet.

@davinci_gallery is the most active platform with the highest volume. We also have replicas of @HarmonyOnePunks and kitties.

(12/n) Apart from that, there are deflationary tokens (@OneMooner), lending platforms (@fuzzfinance), and games (@DefiKingdoms). The total TVL on the network stands at a weak $127M, with the majority ($100M) on @Sushiswap.

(13/n) It is strange to see such low transaction volumes and TVL on native dexs and dapps compared to days following the announcement of the $FTM and $AVAX programs, where the entire ecosystem exploded.

(14/n) One of the reasons could be the low visibility the products have. Even aggregators like @coingecko and @CoinMarketCap have not created a dedicated Harmony ecosystem page.

Discord and TG are the only places to discover projects; I hope this thread helps.

(15/15) Midway through writing this, I saw Algorand release their incentive program. It's too early to tell, but the limited number of products, low TVL, and high FDV indicate that Algo may just be playing catch up.

What do you think?