📊Prospects

"Capturing value" constitutes a significant mechanism within the EtherKEY protocol. This mechanism facilitates the return of value generated by the protocol back into the system by offering liquidity and levying liquidity fees. However, the approach of repurchasing and destroying does not align with a wholly decentralized framework. In light of EtherKEY's decentralized protocol, a primary focus of the platform's future endeavors will involve implementing automation or online voting to achieve its objectives.

$EKEY, as a derivative of the EtherKEY protocol, not only provides liquidity but also has the potential to generate additional value. Firstly, by leveraging the EtherKEY protocol, a significant proportion of the tokens that have been staked can be transferred to other ecosystems through $EKEY. Secondly, as a novel type of asset, $EKEY holds considerable potential for further derivation. Lastly, it is feasible to integrate $EKEY into the existing DeFi ecosystem, where it could serve as collateral and potentially be employed for borrowing. However, it is important to acknowledge that further derivation of $EKEY may lead to new challenges, such as anchoring stability and the assembling risk of Lego Defi, which require thorough investigation in the future.

One of the challenges that arise in relation to $EKEY concerns the allocation of rights, which specifically pertains to the distribution of rewards and the assumption of deposit risks. This is primarily because various PoS projects have different reward distribution mechanisms. Also, due to the interaction delays between staking and off-chain processes, the allocation of rights may not necessarily remain 100% consistent with the original chain. Furthermore, even projects that utilize off-chain allocation of rights may encounter difficulties in verifying ownership of the smart contract during the processing phase. As such, the current approach of relying on a risk-sharing preference among the public is deemed suboptimal, although it does address the problem to some extent. Going forward, it is recommended that more attention and resources be dedicated to optimizing this aspect as the project matures.

In the future, EtherKEY's will move towards platform development to achieve the phased goals of re-derivation of the mortgage assets. Of course, in addition to pledged assets, any assets that are pledged or locked can be circulated through EtherKEY's contract. The new tokens that circulate may be of a different type than $EKEY, but EtherKEY can realize the main function of a derivative asset platform by developing various development kits to fulfill the requirement of asset diversification.