Potion Review: Protocol based on Kelly Criterion for Risk Management, and Potion NFT Unlock Game to release

Wayne Jones • February 21, 2022

Potion Protocol is a web3 dApp that assists in creating automated insurance marketplaces in which buyers and sellers meet and trade at mathematically sustainable prices. How it works is you can buy Potion insurance on the price of, for example, Ethereum, locking a specific price. If the price of Eth falls below that price, the insurance will pay out.



In Potion Protocol, you may also take the opposite side and sell risk insurance (be an LP). As an LP using Potion Protocol, you may use the Kelly Criterion to trade at optimal premium and utilization combinations at all times. Hence, this results in a mathematical expectation of long-term sustainable risk management markets.


Potion Protocol's goal is to make DeFi adoption easier by offering Automated Risk Management on-chain. As a result, the crypto market becomes more secure, with risk products that are safe and sustainable for buyers and sellers.


Moreover, Potion Unlock is a novel paradigm for aggressive decentralization. It establishes a sustainable model for developers of DeFi innovations to focus on software development, as opposed to compliance rabbit holes. Engineering and design of the protocol is separated from deployment and maintenance. With the development of the Potion suite completed, Potion Unlock puts the audited project in the hands of the community.


What Potion Holds?

Potion Analytics

Potion Labs set up a specialized data-science lab to put the Kelly Machine through its paces. Potion Analytics is a set of tools that allow for self-service, no-code back-testing of the Kelly Optimal bonding curves.


The first one is the Kelly Academy that allows users to familiarize with Kelly Criterion in general. It has simple coin toss examples for this purpose

Then, there is the Kelly Optimal Premiums which are the extension of Kello Criterion into the realm of pricing. Kelly vs Black-Sholes is another one. It is a benchmark comparison of Kelly vs BSM .


Next, we have the curve designer is an easy to use custom curve creator with multi-market backtesting. Lastly, we have the Multi-asset pools that allows for the testing of single-curve multi-asset pools.


Potion Unlock

Potion NFT Unlock is a game that encourages the Potion community to work together to release the Potion Protocol into the public domain. With this one-of-a-kind strategy based on “aggressive decentralization” from the start, Potion Labs seeks to avoid the dangers of a traditional project launch, such as a small number of users wielding significant power over a protocol.


Potion Labs has taken the complete Potion protocol coding for risk management of crypto-assets, Potion Analytics and supporting documentation as an encrypted file, to be deposited into IPFS. Following that, they split its password into thousands of pieces and generate private keys which are provided to the Potion NFT minters who can acquire them through a private sale, a public NFT auction, or via airdrops being          performed to OG community members.


Kelly Criterion

The Kelly Criterion is a systematic risk allocation approach utilized by some of the world's most significant risk practitioners. It provides a mathematical framework for making optimal capital allocation decisions in the face of uncertainty.


It is especially significant in this context since it is optimized for survival and growth through repetitive, continuous risk exposure instead of opportunistic single event risk-taking. It is the exact situation the project is aiming for: LPs in an AMM constantly selling risk contracts to achieve steady long-term returns.


The Kelly Machine

The Kelly Machine is a groundbreakingDeFi system. It enables LPs and users to trade collateralized risk contracts, including insurance, puts, calls, and potentially even more complicated derivative products. It accomplishes this using a long-term mathematical expectation of capital growth due to built-in risk management that is automatically applied to all trades.


The premiums for these risk smart contracts are generated analytically from Kelly Criterion optimals. They may then be generalized to apply to any utilization-based pricing scheme.

Key features


●      Optimized for long-term capital preservation and growth throughout all market conditions: programmed to thrive in even the most volatile settings, such as crypto markets.

●      Capital efficiency: Capital may be exposed to numerous risks simultaneously. It allows LPs to achieve better utilization levels and purchasers access a more comprehensive range of goods in deeper markets.

●      Passive experience: LPs do not need to watch their positions continually. Bonding curves alter pricing dynamically to compensate for the risk.

●      Broad product selection: Capital may be used to underwrite a wide range of product configurations, with many distinct combinations of a strike price, term, asset, and so on.


Kelly Machine Vs Black-Scholes

●      Significantly less risky than Black-Scholes. There were discrepancies of up to 100% favour Kelly pricing, particularly for crypto assets.

●      The maximum draw-down is lower than in Black-Scholes. In many situations, Potion Protocol achieved median max drawdowns below 30%.

●      The long-term Alpha expectation is positive as a result of Kelly Optimal implementation.

●      Simple experience for LPs and users, making the Potion protocol accessible to everyone, not just the wealthy.

●      Allows the formation of a market equilibriumcentered on Kelly Optimal pricing.


Potion Lab’s NFT-based Business Model

Potion Labs' business model is a hybrid of many emerging approaches being tested in web3. They want to generate an income by selling Potion NFTs, with pieces of password to decrypt the Protocol, and commemorating the launches of their R&D. As a result, they will produce profits that will support operational expenditures, pay off debts, and keep them working on fascinating DeFi research.


There are six types of Potion NFTs or "rarities”, the more decryption power they have and the less redundancy the better. The first is the Fellowship NFT, the most common NFT (2,600 units auctioned) which provides 6.64% percent decryption power with a redundancy of 100. Advanced NFTs (1,800 units) have a decryption power of 13.13% and a redundancy of 40, so users will have more clout than Fellowship NFT holders.


Legendary NFTs have a decryption power of 17.51% and a redundancy of 25. Potion is only auctioning 750 of these NFTs, but owning them provides users with legendary status over other players.


Original Gangsters (OGs) NFTs (2,850 units) are assigned to their founding members and have a decryption power of 12.77% with a redundancy of 114. Following that, Kelly Knight NFTs (522 units) were made available at Potion's private sale. These NFTs have a decryption power of 9.52 percent and redundancy of 2, implying that Kelly Knights holders will have a significant power.


Lastly, the Wise Wizard NFTs (1,478 units) were also offered during our private sale to key DeFiplayers, and hold a decryption power of 40.43% with a redundancy of 2 as well, also giving their holders significant decryption capability.


The public sale of Potion NFTs is happening imminently. Whitelisting is live, and the Dutch-style auction will be from 28th to 7th March for the Fellowship, Advanced and Legendary Potion NFTs. Book the dates, they’re making history! After the public sale, the Potion NFT Unlock game should start for players to collaborate on-chain to bring enough pieces of password together and decrypt the protocol’s codebase and release it to the public domain.


Potion's Future Goals

Potion Labs' first purpose is to provide a faultless NFT minting experience, while also having fun hosting the Potion Unlock game. It is a novel, revolutionary release method, and the team is eager to give the most excellent possible experience for everyone who contributes to the Potion Unlock open-ended game to potentially decrypt the Potion protocol and release it to the public domain with a sustainable business model for Potion Labs.


On the product front, they are thrilled about expiration-free, pay-as-you-go insurance and automated curve management, two enormous boulders for which they have great ideas and that are a natural next step for this initial release. Long term, Potion Labs dreams about an automatic tail risk hedger for asset portfolios, where one may keep their holdings in a black swan-secure way for a long time.


Final Thoughts

Beyond Potion Labs and its initial specific insurance application, the team feels it is beneficial to think and develop more trustless financial applications like the Potion Protocol. Cooperation among societal actors, like that of the Potion Unlock game to release the protocol’s codebase to the public domain, can yield enormous benefit from this dApp. The long-term effect potential for the development of public goods with a sound business model like that of Potion Labs is substantial.


Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. None of the content on Crypto Folds is investment advice nor is it a replacement for advice from a certified financial planner. Please do your own research before purchasing or investing into any cryptocurrency.  
By Press Release April 17, 2025
The launch of Echo Exchange introduces not just a new trading venue but a broader architecture for digital asset management. The project combines yield generation, community governance, and structured custody into a unified ecosystem.  As part of this infrastructure, Echo brings forward a solution designed to address one of the industry’s most persistent challenges: asset security in uncertain jurisdictions. Echo is backed by its legal designation as a Virtual Asset Service Provider under the Isle of Man’s regulatory regime. The ecosystem integrates a Protected Cell Company (PCC) structure called Echo Elite. This is an optional but pivotal component for users seeking structured digital asset custody tied to enforceable legal protections. What Echo Is Announcing As of May 2025, the Echo Exchange will be live. This launch will include: EchoX, a centralized exchange focused on accessibility and onboarding Echo’s real-yield model, distributing platform fees to token holders in USDC The initial release of Echo Elite, a PCC-based framework for asset custody The public sale of the ECHO Token, the ecosystem’s native governance and yield-bearing asset While many exchanges emphasize front-end interfaces or token incentives, the Echo’s strategy is different. The announcement centers on the full-stack design of its ecosystem - particularly how legal infrastructure underpins user protections. Introducing Echo Elite: Structured Custody Echo Elite is Echo’s most compliance-centric module. It introduces Protected Cell structures, a mechanism traditionally used in finance to isolate client assets legally and operationally. Within the Echo ecosystem, user accounts can opt into a custody model that offers greater legal clarity and jurisdictional insulation. PCCs enable the separation of Echo’s own operating capital from user funds. This becomes increasingly important as tokenized asset classes enter the platform’s offerings in later phases. This also applies to real-world asset (RWA) representations like stocks or real estate. The approach reflects a broader theme: Echo’s attempt to bridge blockchain functionality with traditional financial safeguards. Real Yield and Exchange Fee Sharing Security is only one part of Echo’s user-facing model. The ECHO Token acts as the backbone of a real-yield mechanism, wherein: 50% of all trading fees from both EchoX and Echo Pro are distributed daily to token holders in USDC. 10% of platform revenue on a daily basis will be used for buying and burning ECHO tokens. The strategy aims to gradually decrease circulating supply. This model will be non-inflationary. There will be no staking rewards of synthetics or emission of tokens. Yield will be linked straight to the platform's actual usage. This feature will make the yield more predictable and sustainable than most incentive designs in the digital asset ecosystem. Participation is simple: users activate yield by transferring tokens into a dedicated savings account inside their Echo dashboard. Funds remain liquid and accessible. The Token Structure Echo’s tokenomics are deliberately conservative. Key figures include: Total supply: 1 billion ECHO Burn target: 500 million (deflation ends at this point) Public sale allocation: 2% Community Foundation: 30% (non-transferable and permanently locked) Team allocation: 20% (long vesting schedule) Liquidity allocation: 15% Remaining tokens divided across marketing, seed investors, and gamified whitelist initiatives Importantly, the Community Foundation - which holds the largest share - operates under a binding legal obligation to never sell its tokens. Rather, it only exists on yield, which gets invested in governance-sanctioned ecologics like education, collaborations, and product development. The design intends to discourage speculation as a first point. Also, it aims to encourage long-term alignment between platform success and the fate of the token holders. A Platform Built for Traders Echo’s design consists of two interfaces: EchoX, a consumer-friendly exchange, focuses on simplicity, pair trading using stablecoins, and seamless execution. It addresses first-time users and inexperienced traders not interested in complicated trading schemes. Echo Pro, launching in Phase 2 (Q3 2025), provides advanced features for trading: charting tools, stop-loss, leverage, and API connectivity for institutional and power users. Both sites, in spite of their varying user interfaces and user bases, share a common Scala-based matching platform. This tech is optimized for concurrency, throughput, and speed. They also share backend infrastructure written in Go, with front-end deployment via Next.js for a responsive and consistent user experience. The Technology Behind the Custody Security isn’t limited to user-facing features. Echo’s wallet architecture employs: Multi-Party Computation (MPC): for distributing key control among several parties Tiered wallet models: hot, warm, and cold storage Hardware wallet compatibility Biometric access and passkey authentication AML/KYC procedures are managed by Amazon Cognito, which simplifies user identity verification. The goal is to maintain high compliance standards without degrading onboarding speed. In fact, the latter is a known bottleneck in exchanges that rely on manual reviews. Together, these systems support Echo’s goal of creating an ecosystem where users can interact securely without compromising on usability. Governance and Jurisdiction Governance within Echo relies on both ownership of the tokens and clear jurisdictions. Token holders are able to: Voting on how funds are spent in the Community Foundation. Develop and rank new product features. Approve partnerships and listings of tokens through a formal proposal procedure. But what distinguishes Echo from other projects is that it relies on legal entities to enforce these institutions. It doesn't utilize symbolic DAOs for governance or soft consensus. Rather, decisions, particularly those regarding funding of the ecosystem, are carried out by a foundation. This entity possesses a well-defined charter and binding fiduciary responsibilities. The approach emphasizes establishing trust with those who are not willing to engage with DAO-based systems that lack enforceability. Echo’s Roadmap Rollout for Echo is phased deliberately to maintain product stability: Phase 1 (May 2025): During this phase, there will be the EchoX launch, the ECHO token ICO, and the soft launch of Echo Elite. Phase 2 (Q3, 2025): Following this, there will be efforts to accomplish the full Echo Pro launch. We must include mention of trading bot implementation, community governance platform, and IEO launch. Phase 3 (2026): Derivatives trading, social trading, inclusion of real-world assets, tokenized mutual products, and securities Phase 4 (2027): Full RWA brokerage capabilities, integrated neobank products, and payment rails. All the phases leverage the preceding one by adding platform sophistication. Bottom Line Echo’s product lineup combines high-frequency trading, user real yield, and solutions that take jurisdictions into account. Echo sees itself as a platform where economic incentives and legal architecture converge. With its rollout, Echo joins a small group of initiatives that are geared towards developing new tools for trading. The team is focused on reconsidering the function of regulation and structure in crypto asset custodianship. The project’s official website is a good source of information to learn more about Echo and its growing ecosystem. You can follow the team on the social media pages if you wish to follow Echo’s development: X (Twitter) | Telegram | Discord .
By Press Release April 15, 2025
Echo , a groundbreaking centralized cryptocurrency exchange, has announced that it will officially launch globally on May 15, 2025. The much-expected event is set to be a pivotal occasion for digital asset trading as Echo aims to establish a new industry standard. The community-centric platform promises a seamless user experience, institutional-grade security, and an ecosystem-driven approach.  On the same date of the launch, Echo will conduct a public sale of its native ECHO token, with 2% of the total token supply available exclusively through the platform. The proceeds should boost the project’s development following successful early funding rounds that already secured $2.5 million in support from strategic investors. Echo stands out from other centralized crypto exchanges through its ecosystem-focused model. More precisely, it is designed to thrive on users' participation, who, in turn, benefit directly from the platform's growth and activity. The exchange proposes a transparent and intuitive environment for retail and professional traders to navigate safely and efficiently. Sam Dorrer, Chief Executive Officer at Echo, commented on Echo’s community-driven approach: "Our mission is to create a cryptocurrency exchange that truly prioritizes its users. Echo is designed to be more than just a trading platform—it’s a dynamic ecosystem that fosters long-term engagement and participation." Built for Traders by Traders The rapidly evolving digital asset landscape may seem daunting to newcomers. That’s why Echo provides easy navigation features, deep liquidity, and high-speed trade execution to simplify crypto trading for its growing community. Echo does not set entry barriers and accommodates traders of all skills and experience. Beginners can start on EchoX, the platform’s user-friendly centralized exchange. Thanks to the platform's intuitive interface, they can enjoy a smooth initiation to crypto trading. Meanwhile, institutional and seasoned investors can access Echo Pro and its advanced trading tools. The platform's modular design provides real-time analytics, market insights, and strategies to help traders make better-informed decisions. Lastly, Echo charges minimal fees of only 0.1% per transaction, ensuring all casual or high-frequency traders benefit from a competitive fee structure. The ECHO Token The ECHO token is a foundational element of Echo's unique ecosystem. It is designed as a real-yield token on Ethereum and features robust tokenomics, including a fixed total supply of 1 billion tokens. The platform employs a deflationary mechanism for the ECHO token, allocating 10% of the daily revenue from both EchoX and Echo Pro to repurchasing tokens on the open market. It then “burns” the repurchased tokens from circulation to enhance scarcity and potentially ECHO’s value in the long term. ECHO token holders enjoy fee discounts, premium trading tools, and early access to new services. Moreover, they get governance rights. Therefore, they can participate in platform decision-making, such as fund allocation for the Echo Foundation. The latter will be a pool dedicated to funding growth, strategic partnerships, and other governance initiatives. Echo has allocated 2% of the total ECHO token supply for the public sale taking place on May 15, 2025. This controlled release should create scarcity and support upward price momentum while meeting public demand without diluting the token’s overall value. Revenue and Yield Generation Echo Exchange stays true to its community-focused mission by returning some trading fees to ECHO token holders. The platform distributes 50% of the fees generated from EchoX and Echo Pro as stablecoin (USDC) yields. This feature is a fundamental part of the Echo ecosystem, aligning fee generation with user rewards and ensuring the Echo community grows and thrives together with the platform. Security and Compliance Echo employs the industry’s highest security standards, including multi-layered encryption, biometric authentication, robust KYC/AML checks, and institutional-grade wallet infrastructure. These features guarantee maximum protection for Echo users and their assets. Echo operates as a designated business for convertible virtual currency under the Regulatory Framework of the Isle of Man Financial Services Authority. This status enables the platform to provide tax advantages to its EchoElite Traders under the Isle of Man PCC Structure, which means 0% capital gains tax and 0% corporate tax for crypto investments. EchoElite Traders get to keep more of their gains, accelerating the ability to compound their portfolio. The Echo Roadmap The Echo Exchange is set to follow a 3-phase development path plus a series of future integrations: Phase 1 The Launch of EchoX for basic trading and Echo Elite, with the latter providing asset custody under The Isle of Man’s PCC (Protected Cell Companies) structure. The ECHO token public sale takes place on May 15, 2025, simultaneously with the Echo exchange launch. Echo will also launch the Echo Journal to start building helpful content for its community. Phase 2 The introduction of Echo Pro for advanced trading with cutting-edge tools, such as enhanced liquidity and professional-grade functionalities. This phase will also see the expansion of yield generation models, the integration of trading bots, and additional digital asset services. Phase 3 Echo will expand into Real World Assets (RWAs) trading, leveraging tokenization to unlock traditional asset classes. At this stage, the platform will reach full integration of advanced protocols (e.g., peer-to-contract) to enhance collateralized borrowing and lending capabilities. Other planned features and integrations include: Neobank Rails will enable seamless fiat-to-token conversions with integrated banking services. Fractionalized Assets & Multi-Class Asset Choices, such as tokenizing commodities, stocks, and real estate. Collateralized and decentralized lending and borrowing capabilities through the platform’s peer-to-contract protocol. Offshore & Digitized Trust Structures will expand custody solutions via the Echo Elite framework. An Integrated Launchpad supports onboarding promising new projects to further diversify and strengthen the Echo ecosystem. About Echo Echo operates as a Virtual Asset Service Provider (VASP) for custody and exchange under the Regulatory Framework of the Isle of Man Financial Services Authority. The platform aims to reshape the crypto trading landscape through a user-driven digital asset ecosystem. Echo’s long-term goal is to establish itself as a leader in digital asset management at the intersection of traditional finance and the emerging blockchain-based economy. Echo aims to deliver a community-first trading experience that includes traders of all levels. The platform seeks to empower its members through a robust fee-sharing model, advanced financial tools, daily rewards for token holders, and maximum security for their assets. The ECHO token public sale will occur on May 15, 2025, exclusively on Echo's official platform. The organizers urge interested participants to register in advance via the Echo’s website . Since the sale follows the “first-come, first-served” rule, early registration allows investors to purchase ECHO tokens before they sell out. Those who miss out may have to resort to secondary markets, where prices will vary. For ongoing updates and community engagement, follow Echo on X (formerly Twitter) , Discord , and Telegram .
By Press Release April 10, 2025
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By Press Release April 10, 2025
AW8 , one of the leading online casinos in Singapore, proudly announces the launch of AW8 Pro — its most significant platform upgrade to date. This milestone marks a new era of gaming excellence, offering an expanded game library, enhanced rewards, and a seamless user experience. Since its founding in 2019, AW8 has rapidly grown to over 300,000 active players by 2025, solidifying its position as a leader in the online gaming industry. Exceed 1,000 New Games  AW8 Pro has a comprehensive suite of new features that will delight loyal AW8 players and new users. The upgrade includes over 1,000 new games, expanding the already rich selection of slots and live casino games at AW8. Moreover, it includes games from trending and high-quality providers, thus enhancing the overall gaming experience. Enhance Game’s RTP Another essential upgrade is the enhanced game RTP (Return to Player) rates, now as high as 99.8%. This improvement offers players significantly better winning odds while reinforcing AW8’s commitment to transparency, fairness, and a secure gaming environment for all users. Increase Daily Rebate In addition, AW8 Pro introduces an upgraded daily rebate system, offering players up to 3% rebate automatically credited to their accounts. This enhanced feature is designed to reward players consistently, regardless of the game outcome. By putting value back into the hands of its users, AW8 reinforces its player-first approach—ensuring that every bet, win or lose, contributes to even greater long-term rewards. Upgrade VIP Program AW8 is renowned for its extensive care and appreciation of loyal users. It is an integral part of the latest AW8 Pro update through an enhanced VIP Program. More precisely, the VIP Program has been extended to include 12 levels with numerous incremental perks for those climbing the VIP ladder. For instance, the platform rewards players with an exclusive VIP Upgrade Bonus of up to SGD 5,888. Furthermore, AW8 has lowered the thresholds to enable easier access to VIP benefits. New UI/UX An improved UI/UX gives AW8 a sleek, modern design for smoother gameplay that is designed to elevate the overall user experience. The AW8 Pro upgrade also delivers faster, more intuitive navigation that will help new users find their way across the platform without any hassle. Additionally, the enhanced transaction system offers faster, more secure deposits and withdrawals, ensuring a streamlined and hassle-free gaming experience from start to finish. Overall, the AW8 Pro upgrade provides an enhanced user experience with more rewards and entertainment for new and seasoned AW8 users. The platform now ensures smoother gameplay across all devices. Users can easily switch between desktop and mobile without missing any fun. The upgrade also makes it easier for loyal members to progress and earn, thanks to the lower thresholds in the VIP program. About AW8 AW8 is a modern, all-inclusive online gaming and betting center based in Singapore. The platform has a rapidly growing user base that is attracted by the casino's player-centric approach, large selection of games, and enticing VIP program. AW8 Pro is the casino's most recent and significant update, aiming to set a new standard in the online gaming industry. The upgrades reflect the platform's inclusive mission by catering to seasoned players and newcomers. The update has improved all aspects of the AW8 casino, building towards a uniquely rewarding gaming experience. AW8 Pro is now live for anyone ready to experience the future of online casinos in Singapore.
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