DeFi Kingdoms Operating Model Analysis – DeFi and GameFi Innovation Models

A game that attracted more than 22,000 UAW daily, generated over $1.6 billion in transactions in January, ~240% more than popular crypto game Axie Infinity

dapp game transaction volume

A good game dApp is holding $775 million or 60% of the TVL of the Harmony – ONE ecosystem (Updated on 17-Feb-2022. Source: DappRadar) → making this dApp extremely important for a growing Harmony ecosystem.

harmony defi kingdoms tvl

→ The dApp or the game I want to be mentioned here is the DeFi Kingdoms project. This article will help you better understand how DeFi Kingdoms works!

DeFi Kingdoms Overview

DeFi Kingdoms is a perfect example for DeFi and GameFi, both an AMM DEX, a liquidity pool, an NFTs marketplace with diverse features. DeFi Kingdoms is likened to a gamification ecosystem, smoothly combining DeFi functions through blockchain game mechanics, to create an interesting and exciting experience for users.

DeFi Kingdoms built on the blockchain of Harmony (ONE) with a fantasy ancient world graphic game interface with pixel art. Users can both use DeFi products and receive tokens and various NFTs that play an important role in the game. Also then those NFTs are able to do quests to get more rewards.

defi kingdoms graphics

DeFi Kingdoms graphical interface

DeFi Kingdoms Operation Model

DeFi Kingdoms is a combination of DeFi and GameFi.

From a gamification perspective, DeFi Kingdoms aims to become an ecosystem of all features represented by different game mechanics (names) such as Bank, Garden, Market,… corresponds to the DeFi puzzle pieces. In addition, there are NFTs (Heroes, Equip, and Kingdoms) assets as well as game operations that can be performed with those NFTs as follows:

Marketplace – DeFi Platform

Marketplace is the mall in DeFi Kingdoms.

In Marketplace there will be a decentralized exchange (DEX) using the protocol Uniswap v2 with the image of the female character Matoya-Trader. Here, users can trade token pairs with real-time up-to-date swap rates with extremely low fees and seconds in transaction times.

trader vendor defi kingdoms

Not only that, there is also a place in the Marketplace section where you can become liquidity providers and receive corresponding fees from transactions on the platform. To get started, you can talk to Druid Lazarus to buy a Seed.

You buy Seed Seeds by investing an equivalent value pair of JEWEL and another token. After owning the seeds, you can go to the Gardens to plant them.

buy seed defi kingdoms

Garden – Yield Farming

At Garden, users can plant Seeds, which is equivalent to staking LPs tokens (received from the liquidity provision in the Marketplace) to receive rewards in JEWEL tokens. You can use JEWEL in the game to buy rare NFTs and other items.

garden defi kingdoms

DeFi Kingdoms makes pictures Yield Farming close and intuitive by the gardens. For each garden (ie pairs of LPs tokens), the user will see the ratio of his token LPs to the pool. Have a picture of the farming farmers harvesting your rewards (ie JEWEL tokens) after each specified countdown period and putting those tokens into the brothel.

stake defi kingdoms

More information: From Epoch 1, part of JEWEL tokens earned (5%) in the Garden can be harvested instantly (i.e. unlocked and usable immediately), while the rest (95%) with deep underground (locked) distributed image to ensure the stability of JEWEL tokens in the long run.

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The percentage of rewards claimed from the Garden, which will slowly be unlocked will increase by 2% per Epoch until after Epoch 51 (estimated Q3 2022 depending on Harmony blockchain block cipher speed, assuming average speed 2 seconds per block)

Eg: The reward of staking in Garden in Epoch 1 will be 5% unlocked, 95% locked; in Epoch 2 will be unlocked 7%, locked 93%; in Epoch 3 will be 9% unlocked, 91% locked, etc., until after Epoch 51.

According to parameters from Harmony, we are at block more than 22 million, which means we are in Epoch 13, that is, when you claim the reward, you will immediately receive 29%, and 71% are locked. The source here.

However, DeFi Kingdoms has a more unique feature than any other DeFi exchange that if you own Hero NFTs, you can mint locked JEWELs (ie unlock tokens earlier than planned). ). The rarity index of each Hero NFTs will determine the unlockability for JEWEL tokens.

Bank – Staking

Users can stake their JEWEL tokens in Bank to get the corresponding xJEWEL token back. The Bank will take a share of the fees from the transactions made on the Market and use them to buy back JEWEL tokens in the market. Besides, a part of the transaction fee with JEWEL in the game is also transferred to the Bank to push the price of xJEWEL

bank defi kingdoms

Users can interact with the Bank through the ‘Teller’, an interface with three main functions: Deposit, Claim and Withdraw.

withdraw deposit bank in defi kingdoms

Tavern – NFT marketplace

A place for you to buy, sell or also rent out your Heroes for other players to use for Summoning (will be available in the future).

Heroes – NFT

Hero NFT is the main NFT in the game. These Heroes are characters that users can play, upgrade equipment, increase power, .. Then Heroes can be used to buy, sell, trade with other players and participate in quests and battles. in PVP for rewards in JEWEL tokens.

buy heroes in defi kingdoms

Features of Hero NFT:

  • Summoning and Trading – Summoning and trading: Each NFT Hero is endlessly combined from many different parts to make each NFT unique.
  • Hero Genes: Heroes have two sets of genes, one for appearance and the other for playable attributes (such as career class, subclass, passive and active abilities, etc.).
    • The user can also summon new Heroes by combining genes from the current Hero.
    • During the summoning process, the newly summoned Hero will randomly obtain genes from both Source Heroes used in the summoning.
    • There is also the possibility of mutations in the genes, leading to new, rare abilities and job classes – so to speak an extremely rare and valuable form of NFT, which can be traded for profit on the Tavern.
  • Equipment – Equipment: Heroes can find and equip NFTs with valuable equipment that grants the Heroes special passive and active abilities, and increases that NFT’s stats.
  • Stats – Stats: Heroes will have different stats that determine the level of earning when performing different tasks. These stats can be increased as Heroes gain XP and level up.
  • Quests – Quests: Heroes can perform various quests in Kingdoms to earn JEWEL tokens as a reward.
  • Pets – Pets: Heroes can sometimes find and capture rare pets to accompany their adventures. These pets can add stats, passive abilities to the Hero.
  • PvP: Heroes will be able to participate in periodic tournaments in groups of 3, to battle other players for the JEWEL prize.
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Kingdoms – Kingdoms

world map defi kingdoms
World map – Main view in DeFi Kingdoms

In the world map of DeFi Kingdoms, the supply of land for users to buy will have a certain limit.

Users can not only claim a piece of land for themselves, but also build their own kingdom, investing in upgrades that will provide sustainable resources. The land will contain the developing kingdom and be clearly visible to other users on the world map.

  • Buy and sell: Each piece of land has a different location. Therefore some plots will provide more of this resource than others due to the geographical location of nearby forests, rocks, and other resources. Some will be closer to the center of the capital, easier to participate in certain quests.
    • You have the ability to sell that Kingdom NFT as the asset value increases.
    • Purchases and sales are made at the real estate office (including all improvements that have been made in the kingdom and all buildings built there).
  • Buildings (Building): Buildings can be built in your Kingdoms and upgraded to increase the amount of bonuses.
    • If built next to resource nodes, buildings will allow your Kingdoms to accumulate the extra resources you need to build more buildings, as well as craft rare equipment for Heroes.
    • Other buildings can provide passive bonuses to your heroes, improving their quest efficiency and stats.
  • Exploiting (Foraging): Owning land also gives you the ability to earn resources every day, there is a chance to find rare materials or even equip your Heroes..

How DeFi Kingdoms Creates Value for JEWEL

JEWEL native token of the project. JEWEL is both the governance and utility token of DeFi Kingdoms. To understand how DeFi Kingdoms creates value for JEWEL, we need to know how JEWEL will be used:

  • JEWEL is used as the main currency in the game: Buy and sell NFTs (Kingdoms, Heroes), speed up construction upgrade time, restore Hero’s fitness, pay quests,…
  • Bonus for Liquidity Providers or for staking brothers at Bank (will receive transaction fees from DEX and transactions using JEWEL tokens).
  • Governance: JEWEL holders will have the right to participate in commenting and voting in the development direction of the project.
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For each transaction with JEWEL tokens, the proceeds are divided according to the following distribution:

  • Some are deposited in Bank to reward xJEWEL holders → create buy demand from users, buy and stake JEWEL.
  • Generate indirect profits: Some are rotated back into the game, into the project treasury, returned to the player as quest rewards, and some are used for reinvestment in development to continue the development of DeFi Kingdoms. , profit optimization for JEWEL-token.

Besides, the JEWEL reward when distributed to users is not paid once, but also has a locking mechanism as mentioned above → ensuring the stability of the token so that the project goes longer-term.

And part of the transaction fee with JEWEL in the game is also transferred to the Bank to push the price of xJEWEL.

⇒ JEWEL is the lifeblood of the project, developed with many different use cases. But many use cases ⇒ transactions with JEWEL tokens increase ⇒ Transaction fees are higher ⇒ DeFi Kingdoms will be able to enjoy more fees and have more money to develop => …

That is the Flywheel of DeFi Kingdoms, which is also the strategy that DeFi Kingdoms captures value for the JEWEL token.

DeFi Kingdoms future projections

DeFi Kingdoms is still in the process of development, closely following the original roadmap. Currently, DeFi Kingdoms is completing items on buildings in the kingdom, equipment for Hero and combat system, PVE & PVP.

DeFi Kingdoms is currently dApps occupying a very large proportion on the Harmony platform. Players will both benefit from the Incentive mechanics directly from the classic DeFi market, without fear of the current inflationary state of gamefi. At the same time, DeFi Kingdoms also continuously implements diverse gameplay systems to keep the cash flow in the game.

An innovative idea in the crypto market, creating users with a truly enjoyable DeFi experience than a conventional swap, staking or farming platform. DeFi Kingdoms is growing steadily, and is one of the biggest projects on Harmony.

However, at the time of writing, the development team is still in anonymous mode, has not seen the presence of large funds as well as strategic partners to improve the position of the project in the market.


Above is the entire operating model of DeFi Kingdoms – a unique project in the market. The main points you should keep in mind are as follows:

  • DeFi Kingdoms develops a model between DeFi and GameFi.
  • Innovative model brings many interesting experiences using financial services on gameplay mechanics.
  • JEWEL holders will receive a lot of revenue when the number of users and transactions increases.
  • DeFi Kingdoms has a reasonable strategy for JEWEL tokenomics for users to go long-term with the project.

What do you guys think about this project? Leave a comment below to share and discuss!

Source: DeFi Kingdoms Operating Model Analysis – DeFi and GameFi Innovation Models
– TechtipsnReview

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