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.

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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.

HyroTrader: Ranked Among the Best Crypto Prop Firms and Redefining the Industry Through Innovation and Scale

By Press Release • September 1, 2025

In the rapidly evolving world of trading, HyroTrader has emerged as one of the best crypto prop firms, setting new standards in transparency, technology, and community building. Founded in 2023 by entrepreneur Samuel Drnda, HyroTrader has grown from an ambitious idea into a global company with 34 full-time employees, a community of 30,000+ traders, and recognition across the industry as a true pioneer. From Startup Roots to Industry Leadership The HyroTrader story began with Samuel Drnda, a young entrepreneur who previously built and exited a company focused on automation, machine learning, and AI solutions, and also ran a performance marketing agency with over 40 employees. At just 24 years old, Drnda launched HyroTrade, a crypto CFD trading platform that attracted thousands of customers. During this time, Drnda also gained first-hand experience at Golem Trading, a traditional Prague-based prop trading firm. There, he realized something important: while forex traders had access to prop firms like FTMO, which generated more than $213 million in 2023, no equivalent solution existed for crypto traders. In 2023, Drnda pivoted the business into HyroTrader, an evaluation-based crypto prop firm built to provide traders with real opportunities to scale with capital, tools, and education. The First to Innovate: Bybit API Integration HyroTrader quickly made its mark by becoming the first crypto prop firm to introduce a direct API integration with Bybit. This innovation reshaped the industry, enabling traders to connect their accounts directly and trade in a way that had never been possible before. Other firms soon followed, adopting similar approaches, but the impact was clear: HyroTrader was setting the pace for the entire industry. “When we innovate, the industry follows,” says CEO Samuel Drnda. “We don’t just participate in this market — we move it forward.” Scaling Capital Access for Traders HyroTrader gives traders the ability to access funded accounts up to $200,000, profit splits of 70–90%, and the opportunity to scale up to $1 million in trading capital. So far, the firm has: Funded 700+ traders Processed more than $2 million in payouts Built a community of 30,000+ users worldwide This commitment has earned HyroTrader recognition in the industry, being ranked twice among the best crypto prop firms by respected outlets such as: Altfins: The Best Crypto Prop Trading Firms Living From Trading: Top Crypto Prop Firms Community and Global Presence HyroTrader is more than just a platform — it’s a global community. In late 2024, the company organized a trading tournament at Bybit HQ in Dubai, bringing together the top 30 crypto traders. The event went viral, generating over 170,000 views on social media and further boosting HyroTrader’s reputation as one of the most innovative names in the industry. Today, the team includes 34 full-time employees, with 15 in the Prague office and the rest working remotely from around the world. To support global growth, HyroTrader is also opening a new office in Dubai, a major hub for international crypto trading. Combating Fraud with Decentralization As the popularity of prop trading grows, so too has the number of fraudulent projects. HyroTrader is responding by building a decentralized crypto prop trading protocol, which will allow trader evaluations and performance to be recorded transparently on the blockchain. This innovation will provide traders with a verifiable trading history and give other firms the chance to build on the same framework, improving standards across the entire industry. Investing in People and Product Development HyroTrader is now entering its most ambitious growth phase yet. The company is hiring aggressively and investing heavily into product development to ensure its platform can scale efficiently. “By bringing in the best talent and building scalable technology, we’re preparing for the next stage — serving over a million traders worldwide,” explains Drnda. Future Roadmap Looking ahead, HyroTrader is preparing several major initiatives: New Scalable Application (2025): Launching a next-generation trading platform designed to scale operations to over 1 million users. Crypto Fund for Algo Traders: Supporting algorithmic traders with real capital, helping them test, validate, and scale their strategies. Expanding API Integrations: Partnering with multiple leading exchanges to bring prop trading to new markets. Exchanges themselves are showing strong interest, recognizing that the model generates substantial trading volume. A Trusted Name Among the Best Crypto Prop Firms With consistent innovation, industry-first integrations, and a clear vision for the future, HyroTrader continues to earn its reputation as one of the best crypto prop firms in the world. “HyroTrader was built to empower traders with real opportunities,” says Drnda. “From Bybit API integration to decentralized protocols, everything we do is about pushing the industry forward while protecting and supporting our community.” To learn more about HyroTrader or apply for a trading challenge, visit hyrotrader.com .

WorldShards Announces Partnership with ByBit and Sets TGE Date on September 5

By Press Release • September 1, 2025

WorldShards ($SHARDS) , a highly anticipated Sandbox MMORPG set in the magical world of Murrlandia, announced a new partnership with Bybit, the world's second-largest cryptocurrency exchange by trading volume. The partnership sees SHARDS become part of a Bybit Megadrop campaign offering participants several ways to boost their earnings. Users have until September 3, 2025, to stake USDT or MNT and secure a share of the 60,000,000 SHARDS prize pool. SHARDS will have its TGE (token-generation event) on September 5, 2025, when it will officially list on Bybit Spot. WorldShards is an online, downloadable Web3 MMORPG that successfully blends role-playing gameplay with blockchain innovations, including NFTs. The game supports NFT-authenticated multimedia content, enabling users to collect, trade, and utilize fully owned digital assets across various entertainment platforms. WorldShards delivers fun and interactive multiplayer experiences within an immersive and fascinating virtual world. Players worldwide can enjoy the game on PC, mobile, and consoles. The WorldShards ecosystem functions on a solid economy driven by the SHARDS token. SHARDS is a fair launch token with no allocation to the team or investors, guaranteeing transparency and fairness within a truly community-driven ecosystem. Ahead of the recent announcement , players could join WorldShards by acquiring access keys or digital land. That has changed. Now, users can gain full and free access to the game for 30 days by joining before the upcoming Token Generation Event (TGE), scheduled for September 5, 2025. Players who remain active for at least 25 days of that period will receive full access to the game at no cost. This offer is available only to new accounts, and terms and conditions apply. WorldShards is only the 8th project to enter the Bybit Megadrop platform. This venture will allow players to boost their earnings through these methods: Stake & Earn: Lock USDT or MNT in Fixed Term Bybit Earn to accumulate points Boost via Trading: Multiply the score by making at least one daily Spot trade. Claim Rewards: Earn up to 1% of the total pool per user. The rewards will be distributed in three batches from September 5 to 9, 2025. Bybit services over 70 million users worldwide. Bybit Megadrop is the exchange’s token discovery platform dedicated to providing users with a safe and accessible early entry to new and exciting projects and their emerging tokens. Discover more on how to join Bybit Megadrop , stake MNT and USDT to share from a massive 60,000,000 SHARDS prize pool! About WorldShards WorldShards is an up-and-coming fantasy sandbox MMORPG set in a world dominated by cats. The immersive virtual world features a level-less progression system and an endless amount of new adventures and experiences. The $SHARDS Token is the main resource of the Web3 economy in WorldShards, and players can primarily receive $SHARDS through in-game drops. Join WorldShards ahead of the $SHARDS TGE on September 5, 2025, and remain active for at least 25 of the 30-day trial access to receive full and permanent access to the game at no cost. Learn more about WorldShards on its official website and social media channels: X , Telegram , and Discord .

Vchat: Vietnam’s Awakening Answer to the Future of Social Networks

By press Release • September 1, 2025

In a digital landscape long dominated by Silicon Valley and China’s internet giants, a new force is rewriting the rules of connection and community: Vchat, a project born in Vietnam with a vision far larger than just another messaging app. What began as a communication tool has evolved into an awakening ecosystem — where ownership, governance, and value converge. Its mission is simple yet radical: return voice, value, and agency to the people. The Ownership Economy Unlike traditional social platforms that extract value from user data and attention, Vchat flips the model: Web3 Transparency – All contributions are recorded on-chain, ensuring fairness and traceability. AI Personalization – Each user interacts with an intelligent assistant that supports their journey. Community Rewards – Engagement is converted into VCT Tokens, turning participation into tangible ownership. At the heart of this system lies the VCT Token, powering Vchat’s digital economy. Every like, post, or contribution flows back into the community — not upward to corporations. Users can tip creators, unlock services, trade in the marketplace, or reinvest in the platform’s growth. Governance by the People Vchat is not run from boardrooms but by its community. Through DAO governance, users vote on features, economics, and rules of the ecosystem. Decisions once made in closed circles are now open, transparent, and democratic — a genuine shift of power from corporations to communities. Even advertising is reimagined. Instead of intrusive algorithms, Vchat introduces consensus-driven visibility, where creators and businesses gain exposure through community approval, not manipulation. Commerce Without Borders Beyond social interaction, Vchat embeds seamless borderless commerce. Users can buy, sell, and exchange digital goods or services directly through VCT — bypassing intermediaries. This creates a global marketplace where every participant is both a consumer and an entrepreneur. The VK Vision: From Vietnam, to the World Behind Vchat is VK, a founder whose philosophy goes beyond building platforms. As the Whitepaper states: “We are not chasing the attention economy. We are building the ownership economy — where communities don’t just participate, they lead.” This vision positions Vietnam not as a follower of digital trends, but as a producer of systems that can redefine global standards. Observers believe Vchat’s trajectory could mark a turning point not just for Vietnam’s tech landscape, but for the future of the internet itself. A Turning Point in Digital Culture Vchat is not competing for ad revenue or screen time. It is offering an entirely new paradigm: Where users are co-owners, not data points. Where technology empowers, not controls. Where value circulates within communities, not siphoned by corporations. As the project scales globally, it carries a bold message: “The future does not only begin in Silicon Valley. The future can begin anywhere — even here, in Vietnam.” Official Information Website: https://tapdoanvk.com Whitepaper: https://token.tapdoanvk.com

RealEstate.Exchange Launches with First Security Token Offering: The Legacy Hotel & Residences in Miami, offered by FraXion

By Press Release • August 19, 2025

RealEstate.Exchange (REX) is thrilled to announce that its first client’s Security Token Offering is now available to view on its platform! The FXLI token, offered by FraXion , represents debt financing interests in the Legacy Hotel & Residences development project in Downtown Miami. Investors can now view and read more about the opportunity by creating an account on RealEstate.Exchange. Claus Skaaning, DigiShares CEO: “As part of our mission to deliver increased transparency and accessibility to the real estate market through the use of blockchain technology, the launch of REX and FraXion's FXLI token represent significant milestones.” Nathan Burrell, Managing Director Real Estate, Randolph & Main Capital Group : “Finally, the ability to offer institutional grade real estate projects through an accessible platform. DigiShares' expertise in both primary and secondary markets is the reason we listed our Legacy STO using DigiShares' platform. Investor accessibility was an area of promise with tokenization, and is finally here with DigiShares.” Dan Kodsi, Founder/CEO, Royal Palm Companies : "The Legacy business model excites me the most. Legacy is unique because of the ability to create so many different revenue opportunities in downtown Miami. Legacy is what I call true mixed-use." RealEstate.Exchange is designed to offer investors a way to diversify beyond volatile cryptocurrencies by gaining exposure to more stable real estate assets. Through its trading platform, developed in collaboration with U.S. regulated broker-dealer Texture Capital , REX aims to facilitate seamless and compliant trading of various property types, including residential, commercial, and luxury real estate. To enhance the capabilities of RealEstate.Exchange, DigiShares is leveraging cutting-edge blockchain solutions from leading technology providers, including Polygon, zkMe and Privado ID. These integrations play a crucial role in strengthening security, scalability, and liquidity, ensuring a seamless and fully compliant tokenized real estate trading experience. Polygon – Integrating Polygon’s high-performance blockchain infrastructure to ensure scalability, low transaction fees, and rapid settlement times for real estate tokenization. zkMe – Implementing zero-knowledge proof (ZKP) technology to enhance privacy and decentralized identity verification, ensuring secure and compliant KYC/AML processes without compromising user data. Privado ID – Leveraging DITO (Decentralized ID for TOkenization) to streamline KYC and identity verification processes, ensuring they are secure, efficient, and reusable across the decentralized finance landscape. This approach enhances user experience while maintaining full compliance. Disclaimers: DigiShares and Texture Capital Inc., including Realestate.Exchange, are not involved in these offerings and do not endorse, verify, or assume responsibility for their content or compliance. Links to client primary offerings, accessed via REX, are for informational purposes only and do not constitute an offer or a solicitation of an offer to buy any securities by DigiShares, nor does it imply any recommendation or financial/investment advice. Realestate.exchange is a partnership between DigiShares, a tokenization platform, and Texture Capital, a US-based Broker-Dealer & ATS. This STO is a client’s primary offering, therefore, secondary trading is not enabled. The FXLI security tokens will be available through FraXion's own investor portal. About DigiShares DigiShares is one of the leading providers of white-label tokenization platforms for real world assets, combining financing, corporate management, and trading in an end-to-end solution. Our solutions enable asset owners and fund managers to digitize and automate processes, to reduce administrative cost, to reduce the ticket size to fractionalize and democratize and enable retail investors to participate, and finally to provide a huge increase in liquidity through the built-in marketplace that enables shareholders to trade their assets. Website: www.digishares.io About RealEstate.Exchange (REX) RealEstate.Exchange is a platform for real estate trading, offering investors a regulated environment to buy and sell tokenised shares of real estate assets. REX combines blockchain technology with real-world applications to transform real estate investment and management. In the U.S., REX will be powered by Texture Capital’s SEC-registered Alternative Trading System (ATS). Website: www.realestate.exchange About FraXion FraXion is a non-traditional real estate investment platform utilizing the latest blockchain technology that will provide individuals, not just institutions, with access to distinguished real estate development ventures, side-by-side with large development groups and some of the most recognized institutional partners in the world. Website: https://fraxiontoken.io/