The house always wins! Our community is the “house”!

The response on Twitter has been incredible in the last few days, and we've noticed a lot of interest in the Caishen project. Most of you are probably wondering what Caishen is and what we are attempting to accomplish on Arbitrum. This is the first of three articles to explain Caishen, our one-of-a-kind offering to the Arbitrum ecosystem, and the role of $CAIFU in all of this. 

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What Exactly Is Caishen’s Casino? 

We have seen worthy innovations in the cryptocurrency space over the last decade, and the recent completion of the Merge by the Ethereum ecosystem is a testament to how far the cryptocurrency space has evolved, and this is only the beginning. Caishen's casino intends to concentrate on a sub-sector of blockchain technology also known as NFTs. The new age of digital assets has seemed to captivate half of us while leaving the other half fuming at the supposed absurdity of it all. To be honest, some of the animosity is understandable. NFTs are relatively static in terms of what they are and can do. They appear to be stuck in the proof of concept stage right now. Most NFTs are digital collectibles, not by design but due to design constraints. 

The main issue is that NFTs are not liquid. On platforms like OpenSea, Looksrare on Ethereum, Trove, and Treasure on Arbitrum, disposing of an NFT requires a direct sale to a buyer, making it difficult to assign an actual market value - the type of value that would allow an NFT to be used as collateral, for example. Current DeFi ecosystems are unable to function with non-liquid assets such as NFTs. 

Caishen aims to be a decentralized, deep liquidity hub for Arbitrum NFTs, addressing the majority of the liquidity issues that currently plague Arbitrum NFTs openly and transparently. The Caishen AMM protocol uses customizable bonding curves to facilitate NFT (ERC721s) to token (ETH or ERC20) swaps. Liquidity providers (LPs) can deposit into single-sided buy or sell pools or charge a spread to both sides to capture fees. Users on Caishen can trade NFT in liquidity pools. NFT creators can use our platform to launch their NFT collection and initiate pools for their collection from the first day. 

Why Arbitrum?

Arbitrum has recently been a hub of DeFi innovation, with protocols such as Dopex, GMX, and the Treasure ecosystem leading the way. Caishen intends to follow suit with our one-of-a-kind Arbitrum offering. Arbitrum is known for its speed, low transaction costs, and high throughput. We have seen the success of projects such as the Treasure DAO, with NFTs going as high as over 100,000 dollars from free mints. The absence of NFT-based liquidity protocols eventually led to the depreciation of these assets over time; Caishen aims to provide a solution that innovates around this challenge. We see the potential that Arbitrum has and believe Arbitrum has all the tools needed for Caishen's casino's future and can be a part of an ecosystem with the brightest minds in DeFi. 

Caishen's mission is to create the most extensive decentralized, community-owned protocol for and by the community. Our little social experiment on Twitter is proof of that. Congratulations to everyone who got in. You have been granted access to become a part owner of the Caishen protocol at the lowest possible entry-level level using our native token, $CAIFU. More on this soon, but know that Caishen does not intend to accept VC funding, as we believe it has done more harm than good and goes against the very ethos on which decentralized finance was founded. We have noted that several VC-funded projects have left a bitter taste in the mouth of several retail investors. With Caishen, the goal is community first!

Proposed Governance Model 

We are departing from the current governance model in which the number of tokens equals voting power. This model is flawed because it confines decision-making to whales who act in their self-interest rather than the community's interests. Our governance model seeks to improve on this model by reinforcing the essence of DAO protocol by allocating voting power to those with the community's best interests. More information to be provided in our next article. 

$CAIFU 

$CAIFU is your casino key. Our AMM's native token, with various utilities attached aimed at incentivizing the community and rewarding holders. We will be holding a community fundraising round for $CAIFU soon, and you may be able to buy in at the earliest possible stage, assisting us in bootstrapping our protocol while remaining true to our goal of decentralization.  Since Arbitrum currently has no token, we intend to build the protocol around $CAIFU, from liquidity pools to governance; the Caifu token is the very foundation of our protocol. 

Caishen is a social experiment, a game, and a financial tool all rolled into one; it is a proof of concept for the paradigm shift that will be the future of liquid NFTs. The end goal is to be built modular, with future utilities easily expanded and integrated as the project develops. More utility and lower risk are advantages for all ecosystem users. The Caishen team is choosing to remain anonymous as we intend to build the protocol to be 100% community-managed. We aim to minimize and eventually eliminate our involvement in the protocol once it is set up, staying true to our word of community first. 

Deep liquidity for NFTs is the future, and Caishen on Arbitrum is blazing the trail. 

Once again, welcome to Caishen!

Stay tuned for more information.

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