What Is Colony Lab: 2022’s Top-Notch De-Fi Project That Runs On Avalanche Blockchain

Nikhil Goswami

Colony is a brand new business platform set on modern principles. Existing on the Avalanche ecosystem, Colony offers a fresh way for you to develop your next application. As a selling point, this platform aims to provide support and integrity for any start-up. So, by taking advantage of such an offer, one can easily understand their vision.

Colony positions itself on the right track to accommodate some next-gen projects. Also, thanks to the unique funding mechanism, the platform utilizes the old and the new. So, it too integrates traditional venture capital, but with a twist. For its primary values, Colony sites inclusivity and support throughout the process. Additionally, the Colony has formed a long-term partnership with Cryptominati Capital and other investors.

Colony works with a regulated fund structure even at ground zero. It adopts  projects at their earliest stages and provides them with necessary resources until they take form. In that way, Colony ‘hastens’ the Avalanche protocol.

Furthermore, Colony also contributes to its projects by infusing some extra capital. In other words, it truly helps regarding security and liquidity. Also, the platform will maintain the index for every completed Avalanche project.

However, what makes Colony stand out is its lively community. In practice, the company allows an open governance system. This means its community can freely distribute capital across the Avalanche ecosystem. So, this is a bold move seldom seen in the market.

Yet, that system paves the way for Colony to flourish. Thanks to it, the brand will grow in value alongside its members. In the end, they will get access to staking rewards and buyback mechanisms. Plus, the company uses a regulated framework, so traditional investors can always take an interest. Through it, they have access to the Avalanche Ecosystem as well. So, there are many ways to create growth and increase capital with Colony.

Colony Companies & Platform: Structure

Colony rests on two fundamental pillars, each of which creates value for both the individual and the entire community. The first pillar gives users access to early-stage support. Generally, this is a space reserved only for institutions and investors. Colony, however, turns it into an ‘angel funding opportunity’ stage. Also, it encourages the sharing and distribution of airdrops. At the same time, a percentage of this revenue goes for the stability of the business.

The second pillar is also known as Decentralized Autonomous Organization (DAO), and it functions as an acceleration engine meant to carry an idea to maturity. To do so, it acts as a dominant Layer 1 technology, supporting any projects built on the Avalanche network. Making this happen, Colony implements the DAO structure with a secured infrastructure. 

Additionally, Colony’s centralized system stays in place until the application goes live. Therefore, this company ensures a DeFi project will not stop in its tracks. Instead, they will help and finance its success. As such, the Colony’s core team will carry out the entire affair of investing in new ideas. They employ private equity specialists selected from the crypto industry for this task. 

Every future project undergoes a review process, followed by detailed and thorough analysis. Next, there comes the final note with a score, which is what the investment committee uses before making the final decision. For this purpose, Colony will be housing several investment firms willing to build up their projects via Avalanche. 

Afterward, the platform continues with funding and other technical assistance. Soon, this will allow an Avalanche developer to prepare for any challenge. Later, once a project ‘runs the gauntlet’, the team can focus on development. At that point, the question of capital is a past worry. So, once underway, a Colony project is never prone to sudden hiccups and insecurities.

Community Structure – Colony Blockchain

Colony’s community boasts on attributes such as: 

  • Open Governance: every member of the ecosystem has a right to a vote
  • Liquidity Provider Reward: users can utilize liquidity provider programs to earn profit
  • Staking Rewards: users get incentives from AVAX and upcoming subnets
  • Multiple Airdrops: users will often receive attractive airdrops 

The Colony’s ecosystem includes these categories:

  • Validator program
  • Index
  • Early investment and private placement
  • LP program

Moreover, you can read more about cryptocurrencyies to invest in DeFi cryptocurrencies.

Colony’s Validator Program

Colony aims to support the whole Avalanche network. To this end, they deploy 10% of their capital via the validator program into the source platform. This is accomplished by submitting funds into AVAX and running a validator node. Next, the community can utilize it as staking rewards, and as a result, this further strengthens the Avalanche ecosystem. 

Plus, all of this plays out with open governance. The community decides the allocation program, and only it can change something later. This process introduces subnets, and individuals may also add new projects to the validator program. 

Colony And True Governance

CLY, a unique hybrid token, will facilitate Colony’s operation. People will use the token for the liquidity of Colony’s value flow as well as for the DAO governance. What makes CLY unique is that it represents an entirely new type of asset. In actuality, it empowers and controls its users, acting primarily as a balancing tool. 

The paramount goal of CLY is to introduce incentives across the two Colony pillars. So, it connects the users, the assets contained within it, and the protocol itself. In practice, the CLY facilitates the buyback mechanism from Colony’s LP program. Also, it operates the airdrops from Colony’s early-stage program and several other features like staking rewards.

Conclusion – The Colony Crypto

Colony strives to boost the value of creation on the Avalanche network, and it offers a fresh new take that many find worth investing in. At the very least, there is an attractive policy of keeping a decentralized community system.

Since its inception, Colony has enjoyed a steady revenue growth, and currently, they show no signs of stopping. Instead, they advance their proposals and principles more and more into the Avalanche ecosystem. Also, If you have not already jumped on this project, it is not too late, as Colony has scheduled its DO for Q4 2021.

If you still feel skeptical about investing in Colony, remember its unique functions. Plus, there is their team of experienced crypto professionals ready to assist you with the task at hand.

About the author

Nikhil Goswami

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