The Latest Review of Harmony One

Back in late 2021, Harmony One burst out into the Layer 1 blockchain scene. With its low-cost decentralized applications (dApps) and fast transaction times, Harmony One was set up for success. Today, we recap what Harmony One is and how to buy its $ONE token, among other features.

What is Harmony One?

Simply put, Harmony One is an L1 smart contract-enabled blockchain. It boasts low gas fees for its chain and a quick transaction finality time of 2 seconds. Harmony also aims to address the famous “blockchain trilemma”. To do this, they use a technique known as random state sharding.

So, with this sharding technique, Harmony One is able to:

1. Improve Scalability. Sharding allows Harmony to achieve higher transactions per second (TPS). They do this by splitting the Harmony chain into smaller “shards”. With each shard having its own data, it can run in parallel.
2. Improve Security and Decentralization. Harmony designs their chain to have at least 250 nodes per shard. Also, Harmony employs a verifiable random function (VRF) to re-shard regularly. This makes it harder to hack a certain shard due to the high number of nodes and regular random node-shard assignment. Also, with 250 nodes spread across the world, shards are considered sufficiently decentralized.

Now, the above sounds good on paper. But you may be asking – what does Harmony One provide for a blockchain user like yourself? Let’s dive deeper.

What Does Harmony One Do?

If you’re into DeFi, NFTs, or P2E gaming, smart contract blockchains would be your best friend. As of today, Harmony’s chain specializes in DeFi with close to 50 active projects. Some of these include:

1. Decentralized Exchanges (DEXs). These include Sushiswap and Viperswap.
2. Lending and Borrowing Protocols. These include Aave and Tranquil Finance.
3. Yield Optimizers. These include Beefy Finance, ACS, and Autofarm.

Also, Harmony One caters for bridging from Ethereum and Binance Chain as well. But, now may not be a good time to bridge. I explain why in the section below.

Harmony One’s Recent Events and Current State

In general, the year 2022 has not been kind to crypto. Yet, it is especially harsh to Harmony One. Let’s see why below:

1. Defi Kingdoms (DFK) announces AVAX subnet. DFK had always been a flagship project on Harmony One. At one time, DFK held more than 50% of Harmony One’s total value locked (TVL). On April 2022, DFK announced that it was setting up a similar project on Avalanche’s subnet. Avalanche is a strong competitor in the L1 space. With this, Harmony’s network usage, TVL and daily users pummeled.
2. Luna-UST collapses. The collapse of the Terra ecosystem brought about widespread panic and fear in the DeFi space. Moreover, it also spurned away many potential DeFi users and investors. Harmony One was affected by this, along with other L1 chains.
3. Harmony One’s Horizon Bridge suffers a hack. On June 24th, 2022, Harmony announced that their bridge was hacked. This caused $100 million of funds to be lost. In turn, this led to the de-pegging of many assets such as USDC, BTC, or ETH on Harmony’s chain. This made the chain almost unusable for DeFi. Even till today, many of these assets are unable to trade at their real price. To worsen matters, Harmony One’s leadership is still unable to come up with an adequate compensation plan for users. They’re also unable to recover the $100 million of lost funds.
   

   1/ The Harmony team has identified a theft occurring this morning on the Horizon bridge amounting to approx. $100MM. We have begun working with national authorities and forensic specialists to identify the culprit and retrieve the stolen funds.

   More 🧵

   — Harmony 💙 (@harmonyprotocol) June 23, 2022

4. DFK announces migration from Harmony to Klaytn. Last but not least, DFK also recently announced their departure from Harmony to Klaytn’s L1 blockchain. In our opinion, this would only draw users and TVL away from Harmony to Klaytn.

Currently, Harmony One is ailing. Back in Jan 2022, they boasted a TVL of $1.37 billion. Today, this TVL has plummeted 98% to $33 million. As of now, Harmony is trying to come up with a compensation plan for users who lost funds due to the bridge hack. With its flagship project leaving, Harmony One has a lot to catch up to reach its former glory.

Harmony One’s Competitors

Now, if you’re looking to invest in $ONE, you need to understand Harmony’s competition. As a smart contract L1 chain, there are no lack of competitors. Below are some notable projects:

1. Large-Cap L1 chains. These include Ethereum, Binance Chain, Avalanche, Solana, and Cronos.
2. Large-Cap L2 chains. These include Polygon, Arbitrum, and Optimism.
3. Mid-Cap L1 chains. These include Metis, Acala, Astar, Tezos and Oasis.

As a mid-cap L1 chain, you should compare Harmony’s TVL against other mid-cap L1 projects above. If Harmony starts overtaking these projects in TVL, it could signify a return of investor confidence.

Where and How to Buy $ONE?

Now, if you’re confident of Harmony’s recovery, you’d want to know where and how to buy some $ONE tokens. Let me guide you through that.

First, go to Coingecko and see which exchanges list $ONE. Click here, scroll down and click “Markets”. You should be able to see the screenshot below.

Our choice of buying $ONE is through the Binance exchange. Not only is Binance widely trusted, they also offer less spread on their $ONE token pairs. In addition, they have the majority of $ONE’s trading volume. This means that their price would be the most accurate compared to other exchanges.

For a comprehensive guide on how to buy $ONE on Binance, you can refer to the link here. Said guide provides options on how to buy $ONE using credit cards, debit cards, bank deposits and more.

Now if you’d like to buy $ONE using crypto such as $USDT instead, you can follow the steps below:

1. Set up a Binance account: If you’ve not set up a Binance account, you can learn how to do so here.
2. Send $USDT to your Binance account.
3. Swap your $USDT for $ONE. This can be done using the “Trade” function on Binance’s exchange here.

How to Store and Stake $ONE?

Congratulations! Now you’ve gotten your $ONE tokens. Now, you would need to know how to store and stake them.

For storage, our choice of wallet would be Metamask. If you’ve been around the DeFi scene, you would have set up your Metamask wallet already. Feel free to ignore step 1. Otherwise, please follow both steps below.

1. Set up your Metamask wallet. You can follow the guide from Coingecko here. Refer to the section “Installing and Setting Up Metamask“.
2. Add Harmony Mainnet to Metamask. To do this, you can follow the guide from Harmony themselves here.

Voila! Now you’re set to withdraw your $ONE tokens from Binance to your Metamask wallet. But wait! There’s more! Before you withdraw your $ONE tokens to Metamask, please refer to the guide here. An important point to note is that you need to convert your metamask address (beginning with “0x..”) to a Harmony address (beginning with “one1..”). Only then can you withdraw from Binance to Metamask directly.

Then, you can now proceed to stake your $ONE tokens. You can do so at Harmony’s staking page here. Once you’re at the staking page:

1. Click on “Portfolio” then on “Sign In“.
2. Connect using your Metamask Wallet.

   

3. Now, your wallet is connected to the staking page! Next it is time to choose your validators. A quick guide to choosing validators to stake with. You’ll want your chosen validator to have:
   • A high expected return.
   • A low commission for the validator.
   • A 100% uptime. This shows that historically, the validator hasn’t gone offline. If they do, you won’t earn $ONE during that period.

Once confirmed, your tokens are staked and you’ll be earning a healthy return.

Conclusion

We hope you’ve caught up well with Harmony One and its status through this article. Despite the current issues plaguing the chain, we hope Harmony One is able to recover and reach its former glory.

Now, if you’re optimistic about this, we hope this guide has helped provide you with the know-how on buying, storing, and staking $ONE.

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