Avalanche Multiverse and Defi Kingdoms: Crystalvale
The Avalanche Foundation recently announced the Avalanche Multiverse, a $290MM incentive program aimed at accelerating the growth of Avalanche subnets. The first recipient of these incentives is none other than the popular GameFi dApp Defi Kingdoms. In December 2021, after it had already become the most popular dApp on the Harmony blockchain, Defi Kingdoms announced its cross-chain expansion to Avalanche through its Crystalvale expansion, along with a new token ($CRYSTAL).
At the time Crystalvale was announced, many speculated that Defi Kingdoms would launch on Avalanche as a subnet. Frisky Fox and the DFK team hinted at this possibility in community AMAs, but the announcement of the subnet was only confirmed recently alongside the announcement of the Avax Multiverse. Through its partnership with Ava Labs, DeFi Kingdoms: Crystalvale will receive $15MM in incentives (half in $CRYSTAL, half in $AVAX).
The Defi Kingdoms team confirmed that Crystalvale will be launching on Avalanche on a subnet: the DeFi Kingdoms Blockchain (DFK Chain).
What are subnets?
We’ve previously covered different approaches to blockchain scaling, from ZK-Rollups to Cosmos IBC. Subnets are Avalanche’s unique approach to horizontal blockchain scaling. Subnets allow anyone to build their own blockchain on Avalanche that can run on any custom virtual machine, while also allowing for a dynamic validator set.
Why would someone want to launch a subnet on Avalanche versus launching their own L1? One of the main benefits is customizability; running a subnet essentially allows teams to run their own custom, proprietary blockchain. Subnets can theoretically run any type of virtual machine, including EVM or any potential future VMs.
Furthermore, subnets can choose to adjust specific requirements for its validators. For example, for DFK Chain’s genesis validator set, all subnet validators must also be validators on the Primary Avalanche Network. All genesis subnet validators will also need to stake $JEWEL, DeFi Kingdom’s existing token.
The other main benefit of launching a subnet on Avalanche is access to the Avalanche ecosystem’s existing liquidity. Avalanche allows for cross-subnet asset transfers, which theoretically should make it seamless to move assets between any subnet. By using a subnet, you would get immediate access to the whole Avalanche ecosystem without needing to build a bridge.
Furthermore, as a subnet you get access to Avalanche’s consensus engine out of the box.
Benefits of Expanding to Avalanche
Besides the $15MM in incentives the DFK team is receiving from Avalanche Multiverse, there are other benefits in expanding to Avalanche:
1) Increase in available players. Avalanche has a significantly larger user base than Harmony. Harmony currently has around ~800K unique wallets, while Avalanche has over 2 million. Furthermore, DeFi Kingdoms was the most prominent dApp in the Harmony Ecosystem and was largely responsible for a significant number of users coming to Harmony in the first place.
2) Avalanche is the fastest-growing EVM-compatible chain. Fantom, Binance Smart Chain, and Polygon have all declined in daily transaction count since their peaks in mid-to-late 2021, whereas Avalanche has experienced a steady increase.
Also, an important distinction to make with Avalanche’s C-Chain daily transaction chart is that this number will be less relevant going forward. As more subnets launch, transaction data including subnets and not just the C-Chain will be more indicative of Avalanche’s overall growth.
We’ve also previously covered the importance of EVM compatibility, and among the EVM-compatible alt-L1s Avalanche is the clear leader.
How should you prepare for Crystalvale?
For existing DFK players, you will need to stake $JEWEL initially to earn $CRYSTAL on Avalanche. Players can bridge their $JEWEL from Harmony to Avalanche using the Docks bridge within DeFi Kingdoms: Serendale.
Another way existing players can earn $CRYSTAL is through the “Perilous Journey.” This is an optional quest you can send your DFK Heroes on to receive rewards in $CRYSTAL. The risk here is that your Hero NFTs have a varying likelihood of being burned in the process.
The survival chance for each hero, as well as the resulting $CRYSTAL reward, vary depending on the hero’s rarity, level, and rank.
Some players have speculated that the launch of $CRYSTAL will cause the price of $JEWEL to fall. A few of the potential mitigants to this are as follows:
- The DFK team’s treasury has a war chest of $JEWEL and they’re incentivized to keep its value up
- You need to stake $JEWEL to get $CRYSTAL in the first place
- DFK Chain will use $JEWEL as a gas token
In my view, it’s unlikely that expanding to Crystalvale will be value-dilutive to $JEWEL and Serendale on Harmony. Also, cross-chain expansion has been a major part of the DFK team’s roadmap. They’ve indicated plans to expand to as many as 5 chains in the future.
The team has emphasized it has enough manpower to focus on development for both Serendale and Crystalvale in parallel. If the DFK team continues to incentivize $JEWEL usage in expansion worlds, like they’re already doing in Crystalvale, then $JEWEL demand should maintain.
Furthermore, Serendale will always be a step ahead on the roadmap vs. expansion worlds. Future new features like pets, PVE, guilds, and PVP are all coming to Serendale first.
When is Crystalvale launching?
Crystalvale now has an official launch date of March 30th, and you can view the trailer below:
