crypto market: ETMarkets Crypto Talks | Staking will never lose its charm, a Dapps for web3.0 soon: Tarusha Mittal, UniFarm

The crypto industry, at large, is shaken following FTX collapse. What is your take on it and what are the key features that an organisation must have to absorb such a major volatility to minimise their losses?
The Luna Crash followed by the FTX incident has created a lot of turmoil in the crypto space. This is a situation where a too-big-to-fail empire collapsed overnight. There are a lot of flaws, if we study the incident very closely. First of all, a protocol should not use its token (created by them) as collateral for any loans.

Secondly, user funds are always user funds. Never use those funds for any purpose, no matter how low the risk rate may be.

For any organization, maintaining enough liquidity in both hot and cold wallets is very important. If a user is interacting with a platform, it means he is trusting the platform, and playing with these funds is playing with the user’s trust. So, making things transparent would be a much-needed activity for any organization. To absorb the losses or major volatilities that get spilled due to unforeseen circumstances in the market, creating a parallel fund (SAFU Fund) out of revenue to mitigate contingencies can help.

UniFarm is a collaborative wealth creation platform, which partners with projects in DeFi space. In the aftermath of the Terra and FTX fallout, what is your take on the DeFi space now? Do you think it will impact your performance?
In the DeFi space, Web3 startups who do not have a strong foundation, still get funded in the bull run and make profits. In the bear market, we have learnt from players like FTX and Terra that if the foundation of the startup is not strong, they become big players because of their strategies, and then they suddenly fall because their foundation is not strong.

Now the correction in the market will pull out the startups which are not healthy for the ecosystem. We don’t think this will impact us because we have a very strong foundation and we are completely decentralized. Our vendors and the organization don’t have many links with FTX. The real user of the Defi space is very friendly about the ecosystem and what value UniFarm is adding to the ecosystem.

Staking as a business has lost its charm amid the sharp decline in the crypto market. How do you see this space now, in terms of opportunities and threats for you? Also, do you think that is the worst in this space?
Staking as a business has lost its charm amongst only the retail users who basically got attracted by the bull market and entered the crypto ecosystem after seeing high returns and staking rewards. If the user deeply understands the crypto market and staking as a business, they will continue to invest in the crypto market.

We have users who are staking regularly. I strongly believe that staking as a business will never lose its charm, because banks always provide interest on the savings amount and every Indian has an account in the banks just because they are getting interest on their saved money.

Similarly, in Web3, the users are getting rewards (which we call interest in Web 2). In this space, we should create opportunities and threats that will automatically end by market correction. I hope this is the worst time but there are many projects which don’t have a strong foundation and I think the industry is yet to see the worst time in the coming future.

Web 3.0 has been in the spotlight along with the metaverse. There are multiple reports surfacing lately, projecting their significant growth. How do you see these spaces taking a shape in the coming months, in next one to two years? What opportunities does this have for UniFarm as a player?
Blockchain as a technology is still in its early stages and these cycles are much needed to wipe out the projects which are just popping up without any proper use case. Coming months are going to be a rollercoaster ride for both builders and investors. This will be a good opportunity for the builders. Nevertheless the industry is here to stay and so the projects with the proper use case.

We, at UniFarm, are always open to innovations and expanding to more dimensions. Our journey so far is to make the path towards passive income smoother for our users and we have tightened our seat belts to launch Dapps (decentralised applications) to make the user experience in web3 better. Let’s build together, WAGMI (we are all gonna make it)

What are your plans for the coming future? Are you looking to postpone your upcoming launches or are all plans falling according to the timeline? What are your revenue projections for 2023?

Ans. In the coming weeks, we are going live with Dapps, a decentralized app store for web3 apps for a seamless adoption. The underlying technology behind Dapps is on the protocol level to build the decentralized app store.

Dapps will have 5 layers-Communication, Interoperability, Identity, Commerce, and Open-source and programmable.

With the release of Dapps, we are launching the first layer which is communication – the ability to send notifications which is not possible in Web 3 as all one has is a wallet address. No compromise on privacy or decentralization.

The second layer would be interoperability and that’s going to be even more fabulous because it will completely make the experience seamless for the end user. So that is what holds for the apps. With our five layers and five phases, we are going to have an invisible and we’re going to create an invisible Web 3 experience for the end user. We haven’t experienced any delays in our timeline and we are not expecting any delays as such.

Crypto investors have been losing hope, along with money in the last few months. Do you think that crypto winters will be prolonged in the near future?
It has been a very bad year for crypto investors till now. The global market cap of these digital assets has shrunk below $1 trillion and prices of almost every coin have dropped over 50% from their all-time highs, with no immediate recovery in sight amid the ongoing bear market.

While the Terra (LUNA) debacle last month marked the first major assault on crypto investors’ aspirations, brewing troubles at large crypto lenders, exchanges and companies are threatening that a far bigger collapse may be just around the corner.