Defi and Gamefi
Defi Kingdoms have got it going for them ever since they launched in late August of 2021. They are the first project on Harmony ONE to combine Gamefi with Defi and does it using old school graphics that reminds gamers of the classic pixel games like Chrono Trigger, Super Mario and Castlevania.
The main map in the game really brings the memories back. The cool thing is that they incorporated Defi elements in the form of Liquidity Pools, staking and simple hero mechanics to create a fun environment to play or invest in.
Cryptocurrency and Defi in general has always been hard for traditional investors that are used to the stock market to get into. There are many steps and confusing processes that might scare away first time investors.
Defi Kingdoms has made it fun and light, allowing investors to slowly ease into Defi by using a simple interface with game elements to help make the process much smoother.
Getting Harmony ONE
The easiest way to get started is to get a Metamask account.
Update: You can now buy Harmony ONE directly with the Dockmaster with a credit card. You are still going to need a Metamask setup though.
Below is a simple video that guides you through how to set one up.
How to Setup Metamask
Buying Harmony One Coin
Next, you want to go to https://explorer.harmony.one/. Put in your Metamask address located on the search bar at the top. It will convert that address into the Harmony version. You have the correct address when it starts with oneXXXX.
That address is where you will use to transfer your Harmony ONE coins into your own wallet. This is an important step. Please do not miss it!
Once this step is done, you can actually start playing or invest in Defi Kingdoms!
Staking, Liquidity Pools or Heroes for Quests?
Once you have some Harmony ONE in your Metamask wallet, you can proceed to venture into the game and see what is out there.
Staking and investing in the Liquidity Pools requires the least time investment and does not require to do much aside from investing initially, and perhaps coming back to add more.
Buying heroes and actually doing quests will be a more active approach where you are collecting items or trading them. This part of the game is still a work in progress and the Defi Kingdoms team will be expanding this on their roadmap.
If you are more interested in the playing part, then it is recommended to research a little bit about professions and pick a hero of that specific profession to get started. Currently, Fishing and Foraging are low investment professions to get started. The return of investment will take longer as the items collected from questing are not as valuable since the use case for the have yet to be established.
However, I believe that as they start launching more content, the items will start to grow in value over time, which makes it a decent investment while having fun in the process.
If you are a buy and hold type investor, it makes sense to only stake in the Jeweler (Bank) and earn an APR that is variable. Based on long term trends, the APR varies anywhere from 10-40% (paid in JEWEL Token) based on how the general cryptocurrency market is doing.
For Liquidity Pools (LP), it is a bit more of a hassle to get in and out. It does pay out a higher APR, but it is also risky since the JEWEL token itself is already volatile, so not knowing the risks such as impermanent loss and LP token value loss can be devastating.
Either way, there will be risks. The Gamefi market is a very young market and is subject to the same volatility Bitcoin did when it started out. So the ride is going to be a wild one.
Expansion to Crystalvale
The fun and exciting part is that Defi Kingdoms will be expanding to the Avalanche ecosystem, bringing in more new users to the game, thus benefiting both the Harmony and Avalanche ecosystem.
Both cryptocurrencies have low gas fees compared to Ethereum, which makes it ideal for Gamefi since the amount of transactions done per day is enormous. In order for the game to function, fast and cheap transactions is a must.
So far, both chains are still in growth mode, so there are many bumps along the way, including traffic congestion and slow processing times and peak traffic. Hopefully, this issue will be resolved overtime.
Gamefi Depends on the Trend of Bitcoin...
At the time of writing, the cryptocurrency markets are in a bit of a sideways bear market. Things can change and it will be interesting to see how the Gamefi industry will perform in these conditions.
If it is able to survive the Bitcoin bear market, great things are to come for Defi Kingdoms and the future of Gamefi.