Neopin – Analysis of the Business Model.

This article will understand how Neopin’s operation and Neopin value give $ NPT Holder.

What is Neopin?

Neopin is a platform that also provides decentralized financial services for cryptocurrencies such as SWAP, Staking, Liquidity Mining. Along with that, it also provides other services from their partners such as NFT, P2E (Play to Earn) and S2E (Service to Earn). All on a single platform.

The project supports financial services on many different blockchain platforms. Currently, Neopin is cooperating with two main platforms that are Klaytn and Tron.

The parent company of Neopin.

Neowiz is the parent company of Neopin project, the company was established in 1997. Mainly operating in the field of services on the Internet such as games, and connection programs.

With more than 20 years of operation, the company has many notable capacitors:

• 2007, received the Korean game award in 2007 for outstanding achievements in CSR
• 2008, received awards from the Korean Security & Internet Agency at the 3rd Korean Internet Award
• 2009, certification of information security management system (ISMS)
• 2011, received ‘GWP 2011 Korea’s Best Company to Work for’ Main Award (2 years in a row). Receive the best transparent management award at the 5th Korean Kosdaq Awards
• 2020, Plebby mission won a ‘excellent award’ at the Korean Game Awards 2020
• 2021, Neowiz has won the ‘Creative Entrepreneur Award’ of the Korean Joint Stock Company

And there are many other awards. More information: Click here.

Neopin service?

Neopin currently has 7 main products, including:

• Wallet
• Staking
• Swap
• Yeid Farming
• Play to Earn (P2E)
• Service to Earn (S2E)
• NFT Marketplace

We will turn each of these products in turn, in the three main aspects:

1. What is that product?
2. Operating model of that product.

Wallet

Neopin wallet is a differentiated private wallet.
the wallet can develop spontaneously. Even when Mnemonic was exposed, only the first user could access it. the project will play a common role to keep assets safely and connect assets to services to their partnership.

Neopin will support various chains, starting with the popular major chains such as Ethereum (ERC-20), Klaytn (KIP-7), and Tron (TRC-20). the project will expand to supporting stable coins such as Tether (USDT), USD Coin (USDC), etc., which are designed to minimize fluctuations in virtual assets, so they can be used as an investment means in virtual assets.

Staking

Neopin’s Staking Service is based on POS and DPOS mechanisms. When users is staking , the user’s Staking reward will receive an interest rate of each chain of Deposit, and receive an additional NPT from the project.

1. User deposit assets into Staking Pool
2. the project will be used in the mint here to NPT. Partner of the project is the Layer 1 blockchain, which will use this property to protect the network.
3. Users will receive a reward of $NPT and interest rate annual from layer 1.

Swap

Neopin uses an exchange model like Uniswap. This mechanism is nothing new.

Swap applies a strictly verified protocol so that users can exchange tokens (coins) quickly at any time. The LPers(Liquidity Provider) who provides liquidity in swap, continuously earns rewards with NPT allocated to the pool by the share rate and fees incurred from the swap.

1. Liquidity provider will send Virtual Asset into Liquidity Pool with 2 types of tokens A and B with the same ratio.
2. 
   2.1. Trader, when changing tokens A to B, they will send tokens A and a fee into the pool to exchange for the corresponding B token.
   2.2 Neopin also uses liquidity in the pool to mint to produce $NPT as extra reward for LPers.
3. Swap fee will be given to LPers.

When adding liquidity to the pool, LPers will receive LP token.

Yeild Farming

Similar to the previous Yeild Farming models. LPers provides liquidity for the pool. There is a special feature that Yeild Farming is combined when Liquidity Provider provides liquidity.

This normal part will come from two main sources.

• Transaction fee on Swap mechanic.
• $NPT from Neopin mining.

Play to earn ( P2E)

Neopin provides users with games provided by their partner. They provides user that is a platform like the Steam project. Where users can join the game and buy and sell game products on it.

Services to earn (S2E)

Similar to P2E, S2E refers to the activity of reusing or exchanging virtual assets acquired from non-game services. For instance, if a user uses a particular service, the user will be rewarded with items and coins that can be used in the service. NEOPIN supports existing offline or online partners to adopt blockchain, and they will provide various services for their users for benefits.

NFT marketplace

Neopin offers an NFT Marketplace, where users can exchange and buy products from services such as P2E, S2E, or NFT.

How to Neopin Capture Value for NPT token.

$NPT is a limited supply of 1b. It is designed in a way that only a number of fractions of the total volume will become liquid on the market each month to allow long-term operation.

In addition, $ NPT used is the main reward in Neopin’s ecosystem. To maintain the value of the NPT and motivate the users to stay with the project. They uses buyback mechanism and re-distributing $ NPT to users.

All of the above services such as SWAP, P2E, S2E, and NFT marketplace have a service fee. This fee will be sent to reserve and deduct a part to buy $NPT to re-distribute the service providers to the project.

Neopin Economic model is quite unique, with a closed $NPT distribution circle to keep the $NPT price and motivate users to stay with the project.

1. Users are divided into three main types of users
   • User Services: Users use services provided by Neopin such as NFT Marketplace, P2E, S2E, SWAP. And they have to pay a service fee.
   • LPERS: The liquidity provider to the liquidity pool and they get the profit from this including Fee Swap and $NPT from Reward.
   • Staking Users: Staking token people in the Staking Pool. They receive fixed interest rates and $NPT
2. The service fee will be used to buy $NPT in the market and put into Reserve.
3. Reserve will use $ NPT to re -distribute users to 3 main services: Liquidity Pool, Staking Pool, and Event Reward (used as a reward for events that encourage users to come to the project.

Currently, the fluid on Neopin has not collected fees. And the project uses the current reserve to distribute $NPT as a reward, encouraging users to participate in the ecosystem.

This will cause Inflation because $NPT is launched. which will create pressure for $NPT at the beginning of the project.
However, when there is a certain number of users. The project will deploy service charges and use that fee to Buy Back $ NPT. Will reduce the supply of NPT in the market and the price will rise again.
It can be seen that the Neopin capture value for NPT is not too much at the present time:

1. Farming: Participate in providing liquidity and farming on Neopin’s pools.
2. Buyback: Buy $ NPT in the market to reduce the source of $ NPT.

Verdict.

Neopin is one of the extremely unique Platform game projects with a combination of DEFI and NFT.
Summarize the business model, we can conclude some main ideas as follows:

• $ NPT plays a very important role in Neopin’s ecosystem
• The project focuses on users using the service, not $ NPT Holder.
• The operating model of $ NPT is easy to expand and the project has a very clear strategy to keep users from staying with the project.

After reading the article about the operating model, Neopin’s nature and potential for development, what do you think about this project? Will the project will be a platform project.

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

Find more information about Neopin

Website: https://neopin.io/

Whitepaper: https://neopin.io/VisionPaper_EN_V1.2.pdf

Twitter: https://twitter.com/neopinofficial

Telegram: https://t.me/neopin_eng

DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.

Ken. N

Coincu Ventures