Investing in Shield Finance

The latest addition to Sky Ventures Portfolio is Shield Finance. We want to discuss the reasons for our investment in Shield Finance.

What is Shield Finance?

Shield Finance is a Multi-Chain DeFi Insurance Aggregator. You can use Shield to protect your investments from hacks, rug pulls & price crashes.

Shield utilizes a proprietary aggregation engine to provide custom insurance packages for investor needs.

Why did we decide to invest in Shield Finance?

The cryptocurrency market is experiencing its biggest bull run in history. And while comparisons to 2017’s frenzy are aplenty, the institutional investments rolling in this time around indicate that crypto is here to stay.

With over $80 billion locked in DeFi protocols as of March 2021 — most of it fueled by retail investors — it’s only a matter of time until the “big money” begins taking this new world of finance seriously.

• The Problems

The attractive returns investors gain from storing/staking their assets on untested DeFi protocols make the industry a goldmine for malicious actors. As a result, hacks and exploits are commonplace in DeFi. So common that hackers have stolen $120 million from just 15 attacks in 2020 alone. Moreover, the prevalence of rug pulls (founders of a protocol stealing the assets locked on their platform) and various scams in the industry make DeFi a risky, double-edged sword for new investors.

• The Solution

To protect your assets in DeFi the same way you would traditionally: insurance, specifically, DeFi insurance. The issue? Most DeFi insurance companies only protect you against specific types of risks.

For example, some only protect you against smart contract hacks, while others only shield you from rug pulls. Which means you’d have to buy multiple insurance packages to cover all your bases.

This is where Shield Finance comes in. Think of it as the Skyscanner for DeFi insurance; Shield Finance utilizes a proprietary aggregation engine to provide custom insurance packages for investor needs. Shield Finance allows users to buy protection against multiple major black swan events (hacks, exploits, rug pulls, sell-offs).

$SHLD Token

The most important feature of the $SHLD token is the “buy & burn” program. Every quarter, it redirects 50% of fees generated by users to buy the $SHLD token on the open market & burn it, which results in a permanent reduction of supply. Also, $SHLD will allow you to have governance privileges on the project, such as the ability to submit & vote on the proposals (change protocol fees and other parameters).

Moreover, the $SHLD token provides staking rewards at 30% stable APY.

Tokenomics

• Total Supply : 969,163,000
• Initial Mcap: $626k
• Public Sale: $0.0103 Unlocked at TGE
• Private Sale: $0.0082,10% at the listing, the equal part over a total of 6 months
• Seed Sale: $0.0038, Locked for one month, 5% on the first release, then equal parts of 12% over a total of 9 months
• Team: 12-month lock-up, 8% on the first release, then equal parts of 8% over a total of 12 months

Links:

Website: https://shieldfinance.io/

Pitch deck: DocSend, Dropbox, Figma

Tokenomics: DocSend, Dropbox (PDF), Dropbox (XLS).

Social media: Telegram group, Telegram channel, Twitter, Medium, Reddit, Discord, LinkedIn, GitHub.

Sky Ventures: https://skyventuresvc.com/