If you are interested in your wealth and financial topics in general, then you probably heard about the increasing inflation in the western world. USA got around 8.3%, the European Union reach 10.10% in August 2022. This is quite significant, as it means that your Dollar or Euro savings decreases in value over time.
What is inflation in simple terms?
Have you ever felt like everything you buy is getting more expensive? That exactly is inflation. It occurs when the prices increase across an economy. When you end up with less in your shopping basket for the same amount of money. When your purchasing power of your money, be it USD or EUR or any other currency, decreases over time.
Why do we have inflation? There is a quote from Milton Friedman “Inflation is caused by too much money chasing after too few goods”. Why do we have too much money? The governments had quite a few significant events to react to in the last couple of years to keep the economy stable: real estate bubble burst, southern Europe country bankruptcy e.g. Greece, C-pandemic to name just a few. Usually the governments got only one answer to these kind of events: Printing lots of new money to solve the problems. And print even more money. This works in the short term. There is barely any noticeable side effect also in the midterm. But in the long term it means more money, same amount of goods. So the goods get more expensive as there is more money around to purchase these good. People are willing to pay more. This is increasing the prices. Slowly, but surely. It is actually quite simple.
So what can you do to keep your wealth?
Inflation hedge
There are probably several way to defend your wealth in a inflationary environment. Either you have to invest in goods whose value increases in line with inflation, many investors consider gold as a great inflation hedge. Although if you look at the gold price in the last couple of years, this did not realize yet if you look at the gold chart.
The other way is to have an investment producing a cash flow beating inflation. With traditional investment vehicle this might get quite difficult or you have to increase your risk appetite drastically. This could also result in losses obviously.
This is where systems like Drip and Furio are coming into the game. I see these Defi system not only as great investments in general, but also as great inflation hedges. Why?
Drip and Furio as inflation protection
It is quite simple again: As we just learned together, to protect your wealth from decreasing in value due to inflation, your earnings have to beat inflation. This is currently between 8 and 10% annually, depending where you are located of course. How much profits do we make with Drip and Furio again? Exactly, more then the 10% per years.
With Drip providing us with a daily 1% reward, we can beat inflation within 10 days. Assuming the token price stays stable.
With Furio, if you reach the max. level and you gain 2.5% on a daily basis, you need only 4 days to beat inflation. Here again assuming the token price remains stable.
And if you keep compounding for more then just the 4 and 10 days respectively, you will beat inflation by light years.
What you have to keep in mind is that great profit comes also with certain risks. I wrote an article, many thanks to all the feedback I got, exactly about the risks I see in these systems and how you can mitigate them. Here is the link “Drip – What are the risks?”.
Team and buddy link
Looking for a team to join or just like to follow me on that Defi journey? Or simply want to support me? Please use the links below. Thank you.
You might have followed my Drip journey in the last few days. And as we are already on the road through the Defi landscape, why not just visit another popular destination, which got quite some traction lately. Some of you might guess already, what I am talking about. Yes, you are absolutely right: Lets also stop by at the Furio Website.
What is Furio?
That is the main question we like to answer today. I don’t know much about it either yet, so lets explore it together. If we navigate to the the website, we see in big bold letters
Sustainable Taxation
Team Building Referrals
Compound Interest
Deflationary Tokenomics
Variable Up to 2.5% Rewards System
Anti Dump Mechanics
Some of the points sound very familiar compared to the Drip system. It is even mentioned in the Furio FAQ that Drip had a big influence when the system was designed, of course the team implemented improvements given the experience gained with Drip. Some of the features sound very promising already. So lets look at all these points in further details and see if they really deliver on their promise. Lets have a look at the Whitepaper. Furio in a nutshell so far:
A deflationary token providing daily rewards up to 2.5%, low(er) taxes as it sounds like, and a referral system. So far so good.
The Whitepaper in summary
Before going into the details, I have to mention that the Website and the Whitepaper look stunning: Great design, great layout, very well marketed overall. Lets see what is behind the great design and lets dive a bit deeper and collect some facts about Furio.
My intention at the beginning was to go into every detail of the Whitepaper, but this would be way too much for a single article. So I keep it high-level for the moment and will go into the details in separate articles. Besides the high level overview we will look only a bit closer at the variable reward system, which is probably the most interesting part for most people.
The $FUR token is a BEP-20 token which sits on the BNB chain. I guess that makes it very easy for most people to join the system, as the BNB chain is very popular nowadays and people interact with it on a regular basis. All Drips users as a potential costumer base are on the BNB chain already.
It is mention in the Whitepaper that the $FUR token got a maximum supply of 1’000’000 token, which should create scarcity. That’s what is written on page 3. If you jump to the next page, you can read that should the tax pool get into a rare situation and run out of liquidity to pay the rewards, there is the option to mint new $FUR tokens. So it sounds like the 1 million limit is not really set in stone as it was stated earlier on.
Furio.io got its own swap function called “Furswap”, where you can buy and sell the $FUR tokens. You need USDC for these transactions.
The “Furvault” seams to be the heart (or brain?) of the system where you deposit your purchased $FUR tokens and also claim or compound your daily return. This sounds pretty much like Drip. The difference is that the daily return is not fixed. The daily % varies between 0.5 and 2.5% depending on your compound and/or claim schedule. Lets have a closer look at this further down.
Also Furio got a maximum claim limit like Drip: Here it is either 360% of your initial principal amount or 100k max. payout through compounding.
Furio’s liquidity is provided via FUR-USDC on Pancakeswap
Taxes are also the blood of the Furio system and that’s how the rewards are paid as we learned above already. Taxes are applied on most of the transactions one can do and are mostly 10%. Only exception is if you compound your reward. There are also Anti-Dump-Mechanics involved which are literally very high tax rates (up to 50%) if you sell more then 25% of your tokens. This is especially designed to ensure price stability. Furio got also a burn mechanism implemented applied on most of the transactions, as you see on the image below, making it a deflationary system. On the usual transactions the following taxes apply:
If you are planning to build a team, a team wallet got a least 5 members, you need to purchase NFTs to get rewards from your down line. How many NFT’s you need depends on the depths of the down line. It is actually quite simple: For each level you need an NFT. If your downline got 3 levels, you need 3 NFTs. If you got a huge downline of 12 levels, you need 12 NFT’s. The round robin system applies also on Furio.
Furio got also quite an interesting roadmap within their Whitepaper which lays out many deliverables planned in the coming months or even years. This includes milestones like buying $FUR directly with your credit card, an NFT marketplace and also spreading the Furio ecosystem to further blockchains beyond the BNB chain. Quite interesting stuff to be honest. This should hopefully add real functionality to the token, which should help in its price going forward.
Alright, I think I have covered the most important aspects of the system on a high level. If not, please comment below. Which is always appreciated. Lets have now a closer look at the reward system as promised.
Variable reward system
So Furio promises daily rewards of up to 2.5%. To really achieve this 2.5% you have to meet a few criteria around your compounding schedule. I think the message from the table below and with that from Furio is pretty clear: The more you compound and the less you claim, the more reward you are paid. Or in other words: Remove no liquidity (or as little as you need) from the system and you will get rewarded accordingly.
So what happens if you compound only once a week? I mean, not everybody thinks about compounding their rewards on a daily basis. At least I don’t. The answer comes also in the White paper. Let me include it for you:
New participants will start at 6:1 1.75% but go to 1.0% if they break this pattern before the 28 day cycle is complete.
Positive participants over a rolling 28 days will be guaranteed a minimum of 1% rewards.
Positive participants with over 20 rolling compounds in a 28 day rolling period will increase to 1.25% rewards.
Positive participants with over 24 rolling compounds in a 28 day rolling period will increase to 1.75% rewards.
Positive participants with 28 rolling compounds will increase to 2.5% rewards.
So you really have to compound pretty much on a daily basis to reach the 2.5%. Well, also the 1.75% sound enough interesting suddenly….
What concerns me a bit is the following part:
“Negative participants will be penalised and once you drop to the lower level you CANNOT come back up. Beware the system penalises bad participants, you have to have been a bad player for a period of time before you are penalised, you will then stay in the project at the lower levels.”
I assume that does not count if you forget to compound, but if you claim too regularly. It is also clearly stated that if you claim 7 days in a row you will be taken straight to 0.5% level. So keep that in mind. Crucial to keep that in mind.
Conclusion
So Furio seems to be an interesting player in this compound system landscape. It got some juicy improvements over Drip, some measures to protect its revenue streams, which seem to be pretty strict even I have the impression. I guess, time will tell how successful the system will be over time.
Will I invest? Well, I got now a high-level overview of the system, I hope you too, but will dive deeper into its functionality in the coming days. In a first step I invested a tiny amount to get more familiar with the system and will at the same time invest more time into it. Will I invest further money as a second step? Quite possible. To be honest I really like some aspects of the system…. more Furio articles to follow soon.
Referrer link
Yeah, you probably expected it: If you also like to follow me on that journey to destination “Furio”, please feel free to use my referral link below. Thank you.
