Safuu Protocol launched recently, promising to generate up to 300000% in the first year to mark the fourth quarterly round.
It quickly caught on with Defi traders who expect to make profits by leveraging Annual Percentage Interest (API). So, over last week, the flagship coin, Safuu token picked up a steady gain to record an all-time high of $16.28.
Also, many crypto news reports seem to favor a positive growth prospect for the coin, with individual holders claiming that the coin is rearing around a dip mark. But this may not be true, especially as the token is propped by a community, a steady pump, and sustained trade volume.
The tokenomics might seem a bit lax on verifiable data, prompting many people to wonder if the hourly spike is not due to a pump. Here is what appears to be driving the cryptocurrency up so far. See below
According to the official website, Safuu is “The highest paying auto-staking & auto-compounding protocol.” It typically offers the following features _
- Interest Paid Every 15 Minutes (96 Times Daily);
- Highest Fixed APY in Crypto _ 383025.80%; and
- Automatic Staking and Compounding.
Moreover, the website contains an audit and a whitepaper detailing the Smart Contract T&C and provisions. Solidity Finance audited the platform. Here are some highlights.
Checked for overall functionality, Safuu seems to pass all the metrics except the aspect that concerns centralized control. One of the “if” conditions about the token’s rebase function implies that the dev team can tweak controls on the backend.
Does this mean that the coin is being pumped?
Read the tokenomics below for details.
Table of Contents
Safuu Coin Analysis & Price
The coin records a steady value around its $15.33 peg to the USDT, maintaining a 24-hourly volume of $1536033 USDT.
It lost only three percent (3%) of the traded volume in the period.
Also, the maximum supply estimate is about 3 billion tokens, inferring from the audit. However, the official market cap quote and current supply aren’t available online.
Safuu does not seem to have much tokenomics going on among reviewers, although it isn’t worse for it. The token still records $15.02 and only a 3.85% dip in the past week. And holders seem to appreciate that.
Due to the unverifiable market cap, the performance charts are hard to check against real-time trade updates.
However, Safuu is available for trade at designated exchanges like LATOKEN and Pancakeswap (V2). It also serves as a staking coin on a Defi 2.0-enabled protocol (Safuu Autostaking Protocol), allowing traders to earn fixed APYs.
The rapid interest payment is one thing to watch out for on the site.
According to the provider website, the payment occurs every fifteen minutes over a 24-hour day period, meaning that traders get paid four (4) times an hour. After one day, traders will have up to 96 payment transactions in their credit ledger.
That is a new feature in decentralized finance.
The market cap is unverified.
Also, the company uses an auto staking feature and coopts a rapid payment program. Judging by the intensity of operations, Safuu seems to focus mainly on the Safuu Auto-Staking Protocol (SAPP), a reward-weighted program for coin holders.
The current price is $15.02, despite the coin recording zero market cap on popular exchanges.
Safuu is short for Sustainable Asset Fund for Universal Users.
The dev team shelves about five percent (5%) of the total transaction volumes for the investment fund (SIF), ensuring that the coin keeps a stable price tally to USDT.
SIF works via different wallets, which disburses up to 0.02355% rewards to holders four times per hour. Also, the SIF wallet insures against wild markets to avoid bankruptcy.
Moreover, the dev team could be stabilizing the coin by tweaking control on the backend. You can check the audit for the rebase function, especially the risk impact disclosure.
Is there any loophole? Yes
Apparently, the auditor recommends a resolution in at least one area. In one of the circulation CS (Condition of Service), a clause inserted by the dev team might’ve demanded too much compliance from traders. It reads,
“The ordering of these ‘if’ conditions should be either reversed or reconstructed so that the intended rebase rates are set.”
However, a recent update shows that the Safuu team has resolved the issue. The company seems to pass all the safety checks except one. And that could be a red flag for holders.
See below for details.
Red Flag _ Dev Team Has Too Much Control Over the Coin
Safuu Dev Team seems to interfere with the structure and functionality of the platform, inferring from a series of red flags outlined in the audit as Centralization of Control.
Here are the issues as they appear on the Solidity Finance audit.
- LP tokens received from liquidity adds are stored in an arbitrary address.
- The owner can add any contract to a Blacklist at any time.
- The owner can toggle liquidity adds and rebases from occurring at any time.
- The owner can withdraw $SAFUU from this contract to the treasury address at any time.
So, Safuu team absolutely controls the coin flow, designation wallets, and available volume. What stops them from pumping the prices on the backend? Nothing
It defeats the whole idea of a decentralized currency.
Another problem manifests in the Contract Overview, where Safuu denies any arbitrarily blacklisted contracts from transferring tokens. By extension, it means that Safuu can decide to blacklist a contract and prevent it from accessing tokens.
Should you buy the cryptocurrency?
Read on below for details.
Safuu Review _ Is It Legit?
Safuu offers legit values and reliable awards per 24-hour trade period, although the market cap isn’t publicly available.
Regardless, it reserves too much control on the backend while requiring the holders to cede some level of freedom. That is one crucial loophole in the smart contract. Million Token had similar features and ended up with a low dip after pumping for a period.
Safuu would have to fix this issue.