The first half of 2024 has been great for Beta. Beta has seen the expansion of Omni onto three of the highest EVM consumer chains: Ethereum, BNBChain, and Arbitrum, the distribution of over $1 million to users through Omni Overdrive and BETA Staking, growth to over $7M in TVL across 31 markets, and more. Beta is excited for what is to come for the rest of the year, and would like to keep the community updated on changes.

Omni Product Updates

Beta would like to update adjustments to a previously stated roadmap item regarding NFTs. Previously, we had been exploring incorporating markets for NFTs, such as BAYC, MAYC, Azuki, Pudgy Penguins, and similar blue-chip NFTs. Beta had previously seen a market opportunity not filled by the likes of NFTFi, NFTX, BendDAO, and Blur in regards to NFT lending that focused on risk diversification. However, from the performance of NFTs and after a careful risk assessment, it has been deemed that NFTs are not a favorable market to pursue and expand into.

The decision to halt our NFT market expansion is driven by several critical challenges and risks inherent to the current NFT landscape:

1. Lack of Liquidity:

   • NFTs, especially high-value blue-chip ones, suffer from significant liquidity issues. Unlike fungible tokens, NFTs are unique, making it difficult to find buyers and sellers at desired price points. This lack of liquidity can lead to prolonged holding periods and increased market volatility, posing substantial risks for lending platforms.

2. Market Volatility:

   • The NFT market is notoriously volatile. Prices can swing dramatically based on market sentiment, celebrity endorsements, or even social media trends. This unpredictability makes it challenging to assess the true value of NFT collateral, increasing the risk of undercollateralized loans and defaults.

3. Bearish Sentiment:

   • Recent trends have shown a bearish sentiment in the NFT market. Many high-profile collections have seen significant drops in value, leading to losses for investors. This downturn further discourages participation in NFT lending markets, where the value of collateral is crucial for maintaining platform stability.

Given these challenges, Beta has decided that the risks associated with NFT lending currently outweigh the potential benefits. While NFTs represent an exciting and innovative asset class, the current market conditions and inherent risks make them unsuitable for our platform’s lending and borrowing model. Instead, Beta will focus on other areas within the DeFi ecosystem that offer more stable and predictable opportunities for growth.

Despite stepping back from the NFT lending market, Beta has made significant strides in other areas. Beta has expanded the list of supported tokens on the Omni platform, including several new ERC-20 tokens that have gained popularity and demand within the DeFi community. This expansion allows users to leverage a broader range of assets for lending, borrowing, and staking, thereby increasing the versatility and appeal of the Omni platform.

Beta has upgraded its lending and borrowing protocols to enhance efficiency and user experience. These improvements include:

• Optimized Interest Rates: A dynamic interest rate model that adjusts in real-time based on market conditions, ensuring competitive and fair rates for both lenders and borrowers.

• Streamlined Borrowing Process: A simplified borrowing process with reduced collateral requirements and faster approval times, making it easier for users to access liquidity.

• Enhanced Collateral Options: Expanding the range of acceptable collateral types to include more stable and liquid assets, reducing the risk for both lenders and borrowers.

Recognizing the importance of user education in the DeFi space, Beta has launched a comprehensive educational initiative to help users navigate the complexities of the Omni platform.

In regards to launches on additional chains, including Blast, we are evaluating where to go next after solidifying the product more on the existing chains: Ethereum, BNBChain, and Arbitrum.

Omni Overdrive: Season 1

Season 1 of Omni Overdrive saw remarkable participation from the Beta community. During this period, many previous and new users engaged with the platform, contributing to a significant increase in lending, borrowing, and staking activities. The program's design incentivized diverse and consistent interaction with the platform, driving both user growth and platform liquidity. In total, 10 million BETA was distributed to participants of Season 1, where lending, borrowing, and staking activity were incentivized by the program, and special multipliers were given based on activity.

Special Multipliers

The special multipliers introduced during Season 1 played a crucial role in encouraging specific behaviors that align with Beta's strategic goals:

• Lending to Different Risk Tiers: By offering higher rewards for lending to higher-risk tiers, Beta aimed to ensure that all segments of the market received adequate liquidity support.

• Type of Asset Collateral Used: Users who provided collateral in less common but strategically important assets received additional rewards, helping diversify the asset base on the platform.

• Presence of Activity on More Than One Chain: Encouraging cross-chain activity was vital for enhancing interoperability and expanding the platform's reach across different blockchain ecosystems.

• Frequency of Activity on the Platform: Frequent users who engaged regularly with the platform were rewarded to promote ongoing engagement and platform stickiness.

• Interest Paid on the Platform: Users who paid more interest through borrowing were given higher rewards, incentivizing responsible borrowing and ensuring lenders received their returns.

• Gas Paid to Use the Platform: To offset transaction costs, users who incurred higher gas fees were rewarded, making participation more cost-effective and encouraging higher activity levels.

Impact on Platform Metrics

The introduction of Omni Overdrive had a substantial positive impact on several key metrics:

• Total Value Locked (TVL): The TVL on the Omni platform surged by 30%, reaching over $7M across 31 markets. This growth reflects increased user confidence and the attractiveness of the incentives offered during Season 1.

• Transaction Volume: Transaction volume on the platform increased by 40%, indicating higher activity levels in lending, borrowing, and staking operations.

• User Growth: The number of new users registering on the platform grew by 25%, demonstrating the program's effectiveness in attracting new participants to the Beta ecosystem.

Beta is dedicated to maintaining transparency and open communication with our community. We encourage all users to stay engaged through our social media channels, participate in governance discussions, and provide feedback to help shape the future of the platform. Together, we can build a more robust and inclusive DeFi ecosystem.