NEOPIN: The new encryption work of the South Korean gaming giant, exploring the integration path of DeFi and CeFi.

NEOPIN is a "licensed DeFi protocol" under the well-known South Korean game company Neowiz. The protocol aims to bridge traditional finance and DeFi protocols for users within a compliant framework, while also combining the advantages of CeFi and DeFi.

NEOPIN has been selected for the Innovation Program by the Abu Dhabi Investment Office and is collaborating with local government agencies to develop a DeFi regulatory framework. As one of the few regulated DeFi service providers, NEOPIN actively embraces regulation to ensure long-term sustainable development.

It is worth noting that NEOPIN is the only DeFi protocol that supports both the Klaytn and Finschia networks. Against the backdrop of the impending merger of these two major public chains, NEOPIN is expected to become a DeFi model of the "blockchain merger" concept and benefit from it.

In addition, NEOPIN also offers RWA-based DeFi products. Entering the RWA market under a compliant framework helps NEOPIN enjoy the explosive growth dividends of this market in the future.

Through comparable analysis valuation, we expect that by the end of the first quarter of 2025, the price of the $NPT token will reach between $3.10 and $8.39, indicating significant upside potential compared to the current price.

Backed by gaming giants, operating DeFi in compliance, and benefiting from public chain mergers, NEOPIN is expected to gain more community trust in the upcoming wave of blockchain mergers. As a highly inclusive DeFi protocol, NEOPIN's efforts to bring real-world assets onto the chain are also more likely to be recognized, giving it the opportunity to earn the loyalty of a wide range of web2 and web3 users.

NEOPIN Overview

NEOPIN was established in 2021 and claims to be "a one-stop, non-custodial licensed protocol for securely using encryption under a regulatory framework, while simultaneously possessing the advantages of both CeFi and Decentralized Finance." The protocol aims to bridge traditional finance and DeFi protocols for users.

The parent company of NEOPIN is the well-known South Korean gaming company Neowiz, which previously released the popular FPS game "CrossFire" in Asia. Currently, NEOPIN has been selected for the innovation program of the Abu Dhabi Investment Office (ADIO) and is cooperating with the UAE government to develop a regulatory framework for Decentralized Finance, while expanding services based on this framework globally.

According to the official website, the NEOPIN team members come from well-known companies in the web2 and web3 fields such as Binance, Samsung, Neowiz, and Coupang. LinkedIn data shows that NEOPIN currently has no fewer than 30 employees, with the main team members primarily coming from South Korea, which represents a considerable talent scale in the web3 startup sector.

Advantages of NEOPIN

1. Beneficiaries of blockchain mergers

On February 15th this year, the Klaytn public chain and the Finschia public chain announced their merger, aiming to build Asia's largest Web3 ecosystem, Project Dragon, covering over 250 million Asian wallet users.

Klaytn is a public blockchain developed by Ground X, a subsidiary of the South Korean internet giant Kakao. Kakao Talk is the most popular instant messaging tool in South Korea. Finschia, on the other hand, is a public blockchain developed by Line Tech Plus, a subsidiary of the Japanese internet giant Line. Line Messenger is the most popular instant messaging tool in Japan.

The merger of the Korean version of WeChat and the Japanese version of WeChat's public chain is likely to become a landmark event in the blockchain industry, triggering a wave of "blockchain mergers."

NEOPIN is the only DeFi protocol and governance council member that supports both the Klaytn and Finschia networks. To assist with this historic blockchain merger, NEOPIN has made significant preparations, such as launching the first cross-chain bridge between Klaytn and Finschia, supporting bidirectional cross-chain between the two chains.

In such a complex and large-scale merger project, NEOPIN, as the only DeFi protocol that simultaneously supports two networks, may set an important example for DeFi protocols to respond to blockchain mergers with the launch of each new feature. If NEOPIN performs excellently in this merger, then in future blockchain mergers, NEOPIN, as the first DeFi protocol to take the plunge, is also likely to play a greater role.

2. Proactively Embrace Regulation

In recent years, as the encryption market continues to expand, regulatory agencies in various countries have intensified their investigations and oversight of web3 projects. An increasing number of projects are being incorporated into the regulatory framework, which has become an inevitable trend. However, issues such as insufficient transparency, susceptibility to hacking, and compliance risks are significant factors limiting the long-term development of DeFi projects.

NEOPIN, as one of the earliest protocols to propose "permissioned DeFi", has chosen to actively embrace regulation, demonstrating foresight. Collaborating with regulatory authorities early in the project's development is beneficial for building a cryptocurrency usage platform that meets regulatory requirements while fully leveraging the advantages of both DeFi and CeFi. NEOPIN is working with the UAE government to develop a DeFi regulatory framework and expand services based on this framework globally, placing NEOPIN in a favorable competitive position. Latecomers may have to accept the same regulatory framework, making it difficult for them to pose a threat to pioneers like NEOPIN.

Before using the NEOPIN service, users must undergo KYC verification, which also prevents illegal funds from flowing into the Decentralized Finance protocol, saving users from unnecessary trouble.

The birth of web3 was not intended to create a lawless land; its ultimate goal is to promote innovation in traditional fields in another way. For long-term development, DeFi protocols that involve large amounts of capital flow and high risks must inevitably integrate into the existing regulatory framework. Therefore, for DeFi projects, only by achieving compliant development can a foundation be laid for long-term healthy growth.

We believe that actively accepting regulation and operating in compliance with the law in the early stages of a project is more beneficial for the project's survival and development in the face of tightening regulations in the future. A good reputation can also help the project attract more new users who are just getting into web3, and attracting a large number of new users who have not yet come into contact with web3 is a necessary condition for the growth of the entire industry.

3. Layout of the RWA Market

On March 28 this year, NEOPIN officially announced the launch of RWA-based Decentralized Finance products, entering the RWA market.

RWA( Real World Assets ) market is an important link between the on-chain world and the off-chain world. In recent years, the TVL in the RWA sector has achieved multiple growth every year, making it a golden track with high growth certainty.

Top global institutions such as BCG predict that the RWA market will develop into a massive market worth several trillion, even over ten trillion dollars, in the coming years. Similarly, ONDO Finance, which is compliant in conducting RWA business, has seen its governance token $ONDO grow by over 300% in the past three months.

The NEOPIN BDLP launched by NEOPIN is a multi-yield liquidity mining protocol based on RWA, where users can deposit DAI, USDT, or USDC, and NEOPIN uses sDAI and USDe to provide users with generous returns. Currently, the annualized yield is between 13% and 30%.

In order to provide each user with the best asset management ratio, NEOPIN has even developed a proprietary AI algorithm to help users determine how to allocate the ratios between different assets based on their preferences and on-chain data, thereby efficiently investing in complex Decentralized Finance derivatives.

In this process, NEOPIN simplifies the investment process, allowing users to easily explore and invest in various Decentralized Finance without needing to jump through multiple protocols, reducing the usage threshold for users.

In the future, compliant RWA products will serve as a bridge between the web2 world and the web3 world. Only compliant RWA platforms can allow more web3 beginners to access high-quality real-world assets. Currently, pioneers in the RWA field have the opportunity to establish a first-mover advantage from both the product side and the user side, and succeed in future competition.

NPT Token Economics

The total supply of NEOPIN's ecological token $NPT is 1 billion, with a current circulating supply of approximately 86.64 million, resulting in a circulation rate of less than 10%. The distribution ratio of $NPT is as follows:

• Ecosystem ( 50% ): includes liquidity pool ( 29.75% ), staking rewards ( 13.23% ), service rewards ( 7.02% )
• Partner (18%): Used to establish new partnerships and develop new services
• Team operation (15%): Incentivize the project team and allocate to individuals based on their contributions to the ecosystem.
• Reserve Fund (10%): Designing the allocation to develop the external ecosystem
• Marketing ( 5% ): Promotion and increasing the number of ecosystem participants
• Investors (2%): Allocated to early investors

The specific token unlocking time will vary depending on the type of allocation.

The NPT token plays a core role in the NEOPIN ecosystem, connecting various encryption financial services, including P2E(Play to Earn), S2E(Stake to Earn), M2E(Move to Earn), and NFT(non-fungible tokens). Through these services, users and liquidity providers can benefit from NPT.

The NPT economic system aims to reward users based on their contributions to the NEOPIN ecosystem, by establishing a sustainable token economy and distributing most of the rewards to users, NEOPIN is committed to creating a user-centric ecosystem.

The specific utility of $NPT is as follows:

• Liquidity provision and trading fee rewards: Users can deposit virtual assets or NPT into the liquidity pool to generate trading fees on NEOPIN, thereby contributing to the growth of the NEOPIN ecosystem and the enhancement of NPT value.
• Staking and Locking Rewards: NPT offers staking and locking products, with rewards proportional to the amount delegated to staking products, aimed at rewarding users based on their contributions to the ecosystem.
• Liquidity Mining: Provides liquidity mining rewards based on the interest rates of liquidity pools and fees generated from swap transactions to incentivize liquidity providers.
• Event and service participation rewards: By participating in events that promote the NEOPIN service, users can earn rewards, encouraging active use of the ecosystem.
• Automatic repurchase and supply contraction ( AutoRM ): The NPT economic system adopts automatic repurchase and supply contraction strategies, supporting the stability of NPT value and the sustainable development of the ecosystem through market repurchase of NPT and profit repurchase.
• Ecosystem service support: Supports various services such as cross-chain Swap, NFT market, P2E, S2E, etc., encouraging user participation through this cyclical structure, and collecting rewards through diversified services to help maintain the stability of the ecosystem.

The token economic system of NPT is designed to encourage users' spontaneous participation and adjust reward ratios based on their contributions to the ecosystem. Through a stable NPT cycle and reward mechanism, NEOPIN aims to maintain the stability of the ecosystem and the liquidity pool while expanding the use cases of NPT by supporting multi-chain products, enhancing X2E services, and creating initial liquidity pools, ensuring the long-term sustainability of the ecosystem.

Valuation Analysis

We chose the comparable analysis method to value NEOPIN. Considering the business diversity of NEOPIN and the development prospects of leading public chain projects, we conducted comparable valuation analysis with four main types of projects: DEX, Staking, Bridge, and RWA.