Blockchain validation is becoming a huge industry, and is only projected to become bigger as Ethereum and other projects adopt the proof-of-stake consensus mechanism. With its acquisition of Sesameseed, Unifi becomes the first DeFi platform to take advantage of blockchain validation, and will initially operate six nodes with a combined stake of $13.1 million.
Unifi (UNFI) is expanding the reach of DeFi by becoming the first DeFi platform to integrate blockchain node rewards into its ecosystem. Its recent acquisition of Sesameseed allows it to now operate the blockchain nodes that were formerly run by the multi-chain staking community.
The six blockchain nodes operate on the platforms of IoTeX, Icon, Ontology, Harmony, Tron, and Waves. They have a combined stake of approximately $13.1 million, proceeding from more than 250,000 blockchain addresses.
The Sesameseed nodes currently generate about $3000 per day, which will now feed directly into the Unifi Protocol ecosystem. A high percentage of this will become TVL (Total Value Locked). The Unifi blockchain nodes will be able to mint the UP rewards token which unifies the interests of stakeholders with liquidity providers, and all other projects built on the protocol.
The Sesameseed acquisition will also allow Unifi to absorb the $8.5 million market cap of its SEED token. The 275,000 SEED holders, based on four blockchains, will now be able to claim UNFI tokens, which is the governance token for the entire multi-chain Unifi Protocol.
Sesameseed’s SEEDGerminator developer fund, with a value of approximately $1 million, will now change hands and go towards speeding up development on the Unifi Protocol.
Finally, the majority of the Sesameseed team will join forces with the Unifi team, and will provide expertise in operating blockchain nodes, managing a multi-chain staking community, smart contract development, blockchain and social media integration, multi-chain wallet creation, cross-chain token swaps, project acceleration, and grants application and administration.
The Future For DeFi
History tells us that during times of strife and slowdowns in the tech sector, mergers and acquisitions actually increase, perhaps caused by the need for projects to grow stronger by using the synergies created by these mergers.
Unifi’s move into blockchain node staking definitely sets a precedent for the DeFi world, which is likely to be copied by other projects as they seek to remain competitive. It can be imagined that the next DeFi project to do the same thing will not be long in arriving.
DeFi already has a massive competitive edge over traditional finance systems, but the speed of innovation in the industry is bound to lead to yet more strands of possible income for users. Future new services coming under the DeFi umbrella will be fascinating to see.