NEOPIN Valuation Outlook: Exploring the Best Combination of DeFi and CeFi

NEOPIN is a "licensed DeFi protocol" under the South Korean gaming giant Neowiz, combining the advantages of CeFi and DeFi. It aims to build a bridge between traditional finance and DeFi protocols within a compliant framework.

NEOPIN has been selected for the Innovation Program of the Abu Dhabi Investment Office and is collaborating with local government agencies to develop a DeFi regulatory framework. As one of the few DeFi service providers to obtain regulatory approval, NEOPIN actively embraces regulation to ensure its long-term development is not hindered.

NEOPIN is currently the only DeFi protocol that supports both the Klaytn and Finschia networks. It will become an important beneficiary of the Klaytn and Finschia merger event, and is expected to become a model in the DeFi field within the concept of "blockchain merger."

NEOPIN offers RWA-based DeFi products, entering the RWA market in a compliant manner, and is expected to enjoy the dividends brought by the explosive growth of this market.

Through comparative analysis of valuation, we expect that by the end of the first quarter of 2025, the price of the $NPT token will reach between $3.10 and $8.39, which has significant upside potential compared to the current price.

As a DeFi operation that relies on giants and complies with regulations, and benefiting from the historic merger of two major public chains, NEOPIN is likely to gain more trust from the community in the future wave of blockchain mergers. As an extremely inclusive DeFi protocol, NEOPIN's efforts to bring real-world assets onto the chain are also more easily recognized by users, providing an opportunity to win the loyalty of a wide range of web2 and web3 users.

NEOPIN was established in 2021 and claims to be "a one-stop, non-custodial licensed protocol for the secure use of cryptocurrency within a regulatory framework, while simultaneously possessing the advantages of CeFi and Decentralized Finance. Based on a stable security protocol and a regulated environment, NEOPIN aims to bridge traditional finance and Decentralized Finance protocols for users."

The parent company of NEOPIN is the well-known South Korean gaming company Neowiz. NEOPIN has currently been selected for the innovation program of the Abu Dhabi Investment Office (ADIO), which is responsible for operating the sovereign wealth fund of the UAE, attracting both direct and indirect investments. NEOPIN is collaborating with the UAE government to develop a DeFi regulatory framework and promote services based on this framework globally.

NEOPIN believes that centralized exchanges, represented by CeFi, have caused numerous problems due to factors such as the lack of transparency in customer fund management and ethical issues, resulting in a large number of victims. Meanwhile, DeFi also faces a series of risks, including oracle risks and protocol vulnerabilities, which have led to significant losses in the past. Therefore, NEOPIN has proposed the new concept of "permissioned DeFi."

The permissioned DeFi protocol established by NEOPIN is dedicated to providing a stable, secure, and compliant platform while maintaining high transparency, innovation, and flexibility.

In terms of regulatory compliance, NEOPIN has become the first DeFi protocol to collaborate with the Abu Dhabi Global Market ( ADGM ) to develop and integrate a regulatory framework.

In terms of the functionalities of the DeFi protocol itself, the NEOPIN ecosystem connects various crypto financial services such as P2E, S2E, M2E, and NFTs, allowing both users and liquidity providers to benefit from the ecosystem token $NPT.

The non-custodial wallet NEOPIN Wallet in the NEOPIN ecosystem is worth attention. It is not just a simple cryptocurrency wallet; it represents a comprehensive blockchain ecosystem. It provides users with a seamless experience ranging from basic wallet functions to advanced financial services, allowing them to explore Decentralized Finance (DeFi), NFTs, and other blockchain-based innovative products and services.

The design of the NEOPIN App focuses on user experience, with its intuitive interface and simple operation process making it easy to manage crypto assets, even for newcomers to cryptocurrency.

The compliance of NEOPIN is also fully reflected in its wallet application. After creating or importing a wallet, users need to go through a simple KYC authentication process. The user-friendly KYC process simplifies the identity verification for users. With straightforward steps and clear guidance, users can quickly complete the authentication and enjoy a broader range of services and features.

The main difference between NEOPIN and other DeFi protocols is:

1. It is the only DeFi protocol that simultaneously supports the Klaytn and Finschia networks.

On February 15 this year, the Klaytn public chain and the Finschia public chain agreed to merge to build Asia's largest Web3 ecosystem, Project Dragon, covering over 250 million Asian wallet users.

Klaytn is a public blockchain developed by Ground X, a subsidiary of the South Korean internet giant Kakao. Kakao Talk is the most commonly used instant messaging tool in South Korea. Finschia is a public blockchain developed by Line Tech Plus, a subsidiary of the Japanese internet giant Line. Line Messenger is the most commonly used instant messaging tool in Japan.

The merger of the South Korean version of WeChat and the Japanese version of WeChat's public chain is likely to become a landmark event in the blockchain industry, potentially sparking a trend of "blockchain mergers" in the future.

Blockchain "forks" are very common, while blockchain "mergers" are extremely rare. We believe that the numerous blockchain "forks" that once appeared are just interludes in the development process of the web3 world; in the long run, blockchain "mergers" represent the advancement and future of the web3 world.

NEOPIN is the only DeFi protocol and governance committee member that supports both Klaytn and Finschia networks. NEOPIN has made extensive preparations for this historic blockchain merger.

In this complex and massive merger project, users utilizing on-chain protocols or holding on-chain assets are bound to encounter many unprecedented issues. As the only DeFi protocol that simultaneously supports the Klaytn and Finschia networks, NEOPIN's every move is closely watched by the market, and the launch of each new feature is expected to serve as an important example of how DeFi protocols can respond to blockchain mergers.

If NEOPIN performs excellently in this merger, then in more blockchain mergers in the future, NEOPIN, as the first DeFi protocol to take the plunge, will certainly have the opportunity to play a greater role.

2. Actively Embrace Regulation

In recent years, with the continuous expansion of the crypto market, regulatory agencies in various countries have intensified their investigation and regulation of web3 projects. An increasing number of projects are being brought under regulatory frameworks, which has become an inevitable trend. However, issues such as insufficient transparency, vulnerability to hacking, and compliance risks are important factors that limit the long-term development of Decentralized Finance projects.

NEOPIN, as one of the first protocols to propose "permissioned DeFi", has chosen to proactively embrace regulation, which is a very bold and forward-looking move.

Proactively choosing to collaborate with regulatory agencies in the early stages of a project is beneficial for building a cryptocurrency usage platform that both complies with regulatory frameworks and fully leverages the advantages of DeFi and CeFi. Its collaboration with the UAE government to develop a DeFi regulatory framework and promote services based on that framework globally also places it in a favorable competitive position, while later entrants may have to choose to accept the same regulatory framework, which does not pose a threat to pioneers like NEOPIN.

Before using the NEOPIN service, users need to undergo KYC verification. This step also prevents illegal funds from flowing into Decentralized Finance protocols, bringing unnecessary trouble to users.

The birth of Web3 is not to create a lawless land; its ultimate goal is to promote innovation in traditional fields in a different way. For long-term development, DeFi protocols, which involve significant capital flow and high risks, must inevitably integrate into the existing regulatory framework. Therefore, for a DeFi project, only by achieving compliant development can a foundation be laid for long-term healthy growth.

We believe that actively accepting regulation in the early stages of the project and operating in compliance with the law is more beneficial for the project's survival in the face of stricter future regulations. A good reputation can also help the project attract more new users who are just getting acquainted with web3, and attracting a large number of new users who have not yet been exposed to web3 is a necessary condition for the entire industry to grow.

3. Provide RWA-based Decentralized Finance products

On March 28 this year, NEOPIN officially announced the launch of RWA-based DeFi products, entering the RWA market.

RWA( Real World Assets ) market is an important link between the on-chain world and the off-chain world. In recent years, the TVL in the RWA field has achieved multiple growth every year, making it a golden track with highly certain growth.

Top global institutions such as BCG predict that the RWA market will develop into a massive market worth trillions of dollars, even exceeding ten trillion dollars, in the coming years. Similarly, ONDO Finance, which is compliant in conducting RWA business, has seen its governance token $ONDO grow by over 300% in the past three months.

The NEOPIN BDLP launched by NEOPIN is a multi-yield liquidity mining protocol based on RWA, allowing users to deposit DAI, USDT, or USDC, while NEOPIN uses sDAI and USDe to provide users with generous returns. Currently, the annualized yield rate is between 13% and 30%.

To provide each user with the best asset management ratio, NEOPIN has even developed a proprietary AI algorithm to help users decide how to allocate the ratio between different assets based on their preferences and on-chain data, thereby efficiently investing in complex DeFi derivatives.

In this process, NEOPIN simplifies the investment process, allowing users to easily explore and invest in various Decentralized Finance without having to navigate through multiple protocols, thus lowering the user entry barrier.

In the future, compliant RWA products will serve as a link between the web2 world and the web3 world. Only compliant RWA platforms can enable more web3 newcomers to access high-quality real-world assets. Currently, pioneers in the RWA field have the opportunity to establish a first-mover advantage from both the product side and the user side, and succeed in future competition.

The total supply of NEOPIN's ecosystem token $NPT is 1 billion, with a current circulating supply of approximately 86.64 million, resulting in a circulation rate of less than 10%. The distribution ratio of $NPT is as follows:

• Ecosystem ( 50% ): including liquidity pools ( 29.75% ), staking rewards ( 13.23% ), service rewards ( 7.02% )
• Partner (18%): Used to establish new partnerships and develop new services
• Team operation (15%): Incentivize project teams and allocate to individuals based on their contributions to the ecosystem.
• Reserve Fund (10%): Developing the ecosystem according to the designed allocation.
• Marketing ( 5% ): Promotion marketing, increasing the number of ecosystem participants.
• Investors (2%): Allocated to early investors

The specific token unlock times will vary depending on the type of allocation.

The NPT token plays a core role in the NEOPIN ecosystem, connecting various crypto financial services, including P2E(Play to Earn), S2E(Stake to Earn), M2E(Move to Earn), and NFT(non-fungible tokens). Through these services, users and liquidity providers can benefit from NPT.

The NPT economic system aims to reward users based on their contributions to the NEOPIN ecosystem, by establishing a sustainable token economy and distributing most of the rewards to users. NEOPIN is committed to creating a user-centered ecosystem.

The specific utility of $NPT is as follows:

• Liquidity provision and trading fee rewards: Users can deposit virtual assets or NPT into the liquidity pool to generate exchange trading fees on NEOPIN, thereby contributing to the growth of the NEOPIN ecosystem and enhancing the value of NPT.
• Staking and Locking Rewards: NPT offers staking and locking products, with rewards proportional to the amount delegated to the staking products, aimed at rewarding based on the user's engagement with the ecosystem.