What Is SafeMoon (SAFEMOON)?
Tech Deep Dives

What Is SafeMoon (SAFEMOON)?

CoinMarketCap takes a deep dive into a community-driven DeFi protocol, SafeMoon.

What Is SafeMoon (SAFEMOON)?

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With over 2.5 million holders and more than $50 million locked in liquidity, SafeMoon is a DeFi projects with a fully diluted market capitalization of over $1 billion, according to CoinMarketCap. 
This is a community-driven DeFi protocol that features a deflationary utility token, SAFEMOON. It runs on the BEP-20 token standard, built on the Binance Smart Chain (BSC). The project was launched in the first quarter of 2021 and came with several features such as static rewards, liquidity pool acquisition, and burn strategy. 

SafeMoon’s Contribution in the World of Crypto

The cryptocurrency market is home to several projects that promise high yields. It is not uncommon to hear of platforms that feature a 300% or even 500% APY in crypto space. 
However, volatility still reigns, and most of the existing DeFi platforms are limited by inherent challenges, including the infamous rug pulls. Other challenges include faulty smart contracts that leave room for exploitation. SafeMoon offers a solution that simplifies the DeFi process. It adds an unprecedented level of security to the entire yield farming or liquidity mining process. 

This is a community-driven protocol aimed at generating a reasonable APY for investors with an automatic liquidity generation and token burn process. What's more, the protocol's smart contracts are vetted by Certik, adding to the peace of mind users should expect with SafeMoon.

Who Created SafeMoon?

The team behind the project consists of Thomas Smith (CBO), John Karony (CEO), Hank Wyatt (CTO), Jack Haines (COO), Jacob Smith (web developer), and Charles Karony (executive assistant).

How Does SafeMoon Work?

The SafeMoon protocol works around the platform's BEP-20 SafeMoon token, which operates with a mix of auto-liquidity generation as well reflection tokenomics. The token's deflationary mechanism has already burned 400 trillion tokens. 
Each SAFEMOON transaction charges a 10% fee, thereby distributing 5% of the fee to SAFEMOON holders, while the other 5% fee is further split in two.
From the percentage that is split in two, half is sold by a smart contract into BNB (Binance Coin) while the other half is automatically paired to BNB and added to PancakeSwap's liquidity pool. 

With this mechanism, the fans who hold onto the token are rewarded with static rewards, while those who sell their SAFEMOON tokens are disincentivized for continuous selling. Overall, this stabilizes the token's price and funds the project's liquidity.

What Makes SafeMoon Unique?

SafeMoon stands out from its competition, thanks to its features that include;

Static Rewards 

Static rewards are the 5% tokens distributed to SafeMoon holders. The amount distribution is based on the volume of tokens traded as the 5% is a part of the 10% fee charged on every transaction. This helps solve the downward sell pressure that is often the case when early adopters sell their tokens.

Manual Burn

This feature implements a token burn strategy for SAFEMOON such that the supply of tokens reduces to increase its price and demand. 

Automatic Liquidity Pool

SafeMoon features a self-sustaining liquidity pool that sucks up tokens from transactions in the form of fees and adds them to SafeMoon's liquidity pool on PancakeSwap. This adds a solid price floor for the token. It also penalizes selling activities, thereby discouraging whales from dumping the token in the markets. 

SafeEarn

In addition to the gains that SAFEMOON holders benefit from simply HODL-ing the SafeMoon token, users get to earn more incentives with SafeEarn. SafeEarn is a newly launched decentralized application on the Binance Smart Chain network that allows SafeMoon holders to stake their SafeMoon token (or convert them into SafEarn tokens) and automatically earn more SafeMoon

When Will SafeMoon Hit 1 Cent?

As of now, the SafeMoon token is priced at $0.000001625. While the road to 1 cent seems far off, upcoming updates to the SafeMoon platform, including the SafeMoon wallet as well as a SafeMoon exchange will drive more interest to the project.
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