WEMIX 3Q 2023 Review

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DaeYoonet al 1
Xangle Partner Research
Dec 05, 2023

WEMIX 3Q 2023 Review

Table of Contents

1. Project Overview

2. Highlights of 3Q 2023

2-1. Major Events & Updates

2-2. Key Metrics

3. On-chain Performance

3-1. Financials

3-2. Network Activity

3-3. Network Security

3-4. Development Activity

4. Gaming Ecosystem, Major Events, and Partnerships

4-1. Gaming Ecosystem

4-2. Major Events

4-3. Partnerships

5. Recap

 

 

 

1. Project Overview

WEMIX 3.0 is a blockchain based on EVM operated by the Korean game company WEMADE. WEMIX 3.0 ensures high security and fast speed of up to 4,000 TPS by adopting the SPoA (Stake-based Proof of Authority) method, that combines PoS and PoA methods where Node Council Partners of 40 validated nodes handle block generation. The ecosystem that composes WEMIX 3.0 includes the blockchain game platform WEMIX PLAY, and DAO and NFT platform NILE, as well as the DeFi platform WEMIX.Fi.

 

2. Highlights of 3Q 2023

2-1. Major Events & Updates

Major Events of 3Q: Reveal of the omnichain project, unagi, launch of L2 Kroma mainnet, Launch of WEMIX rewarding program, PoET, Wepublic new feature update, launch of PNIX DEX

  • Omnichain project unagi was revealed for expanding WEMIX 3.0 ecosystem. It’ll help secure inter-operability of blockchain networks and provide user-friendly environment.
  • WEMADE subsidiary Lightscale launched Ethereum L2 Kroma mainnet. Kroma will attract users and assets of the Ethereum ecosystem into the WEMIX ecosystem.
  • PoET program was launched that rewards participants that contribute to the WEMIX 3.0 ecosystem. This also contributed to sharp increase in transactions in 3Q.
  • Among 4 of Wepublic’s major features, proof of ID, proof of qualification, and proof of balance have been updated.
  • PNIX DEX, an orderbook-based DEX where WEMIX Play-onboarded game tokens can be traded.

Continued expansion of WEMIX Play gaming ecosystem

  • The addition of five new games, including C9: Golden Continent, MIR2M: The Dragonkin, IcarusM: Guild War, Soul Seeker Knights, Taming Master: Pet Guardian, bringing the total to 37 games onboarded.
  • Additionally, Infinity Saga X entered beta service, and ORANGE BANANA PUNCH and 'Valkyrious' initiated pre-registration.
  • A total of 14 games, including Tank Battle Heroes: World War, Wind of CHAOS, TNT Bomb Commando, signed onboarding contracts with WEMIX Play. Various genres such as RPG, shooting, puzzle, simulation, and sports are included.

Active partnerships beyond gaming: SK Planet, Pyth Network

  • There are plans to strengthen the partnership between WEMADE’s blockchain business and SK Planet’s OK Cashbag through strategic collaboration.
  • There are also plans to develop real-time data using Pyth’s price feed through active collaboration with Pyth Network.

2-2. Key Metrics

Wemix Key Metrics

 

3. On-chain Performance

3-1. Financials

Wemix Financials

WEMIX 3.0 recorded quarterly revenues of $0.2M (QoQ +757%) in 3Q, but the net loss amounted to -$5.0M (QoQ net loss cont’d). The rise in daily transaction volume, particularly from September, contributed to the reflected growth in fee-based revenues. However, the net loss is sustained by the ongoing burden of token incentive costs*. Although quarterly losses persist, the gradual reduction in the magnitude of losses signifies a positive trend toward improving profitability.

* Token incentive costs are defined as expenses newly issued for block validation on the network or rewarded to validators from the reward pool.

3-2. Network Activity

Wemix Daily Transaction Volume

The daily transaction volume of WEMIX 3.0 remained relatively stable until the second quarter, but a significant surge was observed starting from the third quarter. Particularly in 3Q, there was a remarkable increase, with an average of 323,000 transactions per day, representing a substantial 1568% growth QoQ. This surge appears to be correlated with the introduction of the PoET program, where $WEMIX is provided as rewards, primarily driven by increased bot activity following the program's launch in September.

Wemix Wallet, Wemix Daily active Wallet count

The daily active wallet count exhibited volatility over the last four quarters, from 4Q of the previous year to 3Q of the current year. 1Q saw fluctuations due to the relisting of $WEMIX, while 2Q experienced variations associated with major events such as exchange hacking. In 3Q, the introduction of the PoET program contributed to an increase in daily active wallets, as similarly observed in the daily transaction volume starting from September. The average daily active wallet count in 3Q was 2,800, reflecting a 13% decrease QoQ.

Wemix TVL, Wemix Transactions

WEMIX 3.0's TVL faced a sharp decline in 4Q of the previous year to 1Q of the current year, mainly due to issues related to the designation and delisting of $WEMIX. However, excluding this period, the TVL has remained within the range of $11M to $18M.

3-3. Network Security