5xFaction

5xFaction — The Ultimate No-Loss DeFi Arena

WHAT IS 5xFACTION

5xFaction is a no-loss DeFi protocol that gamifies yield farming through strategic faction-based competition. Instead of passive yield farming, users actively compete for yield by choosing which of five legendary factions to back: SHADOW, BLADE, SPIRIT, PILLAR, or WIND.

The protocol uses a Pentagon Nash Equilibrium scoring system. a five-way rock-paper-scissors system where each faction defeats two others and is defeated by two others. Victory is determined purely by game theory, no luck, no randomness.

All deposits are pooled and routed to DeFi lending to generate yield. The winning faction claims 100% of the epoch's yield pot, while your principal remains 100% safe.

Weekly 7-day epochs create a rhythm of strategic decision-making: 2 days to analyze and stake, 5 days of yield generation, then resolution.

THE PROBLEM

1. Yield Farming is Boring
   Traditional DeFi yield farming is passive. Users deposit tokens, receive yield, and wait. There's no engagement, no competition, and no excitement.

2. Gambling Protocols are Risky
   Prediction markets and gambling dApps put user principal at risk. Users can lose their entire investment on bad bets.

3. No Skill-Based DeFi Games
   Most DeFi "games" rely on luck, timing, or information asymmetry. There's no protocol that rewards pure strategic thinking.

4. Yield is Fragmented
   In traditional lending, yield is distributed equally regardless of user engagement or skill level.

OUR SOLUTION

5xFaction solves all four problems:

• Gamified Faction Competition
  Users don't just deposit, they choose a faction, analyze the metagame, and compete against others for yield dominance.

• No-Loss Mechanism
  All deposits go to DeFi lending. Users only compete for the generated yield, never their principal. Withdraw anytime.

• Pentagon Nash Equilibrium
  Victory is determined by mathematical game theory. Each faction's score depends on TVL distribution across all factions. Pure strategy wins.

• Winner-Takes-All Model
  Instead of splitting yield equally, the winning faction claims 100% of the epoch's yield pot. High stakes, high rewards.

KEY INNOVATIONS

• Pentagon Nash Equilibrium: A perfectly balanced 5-faction system where each faction defeats 2 others and loses to 2 others, creating pure game theory dynamics with no dominant strategy. The sum of all faction scores always equals zero.

• No-Loss Competition: Users only compete for generated yield; principal is never at risk, bridging the gap between boring yield farming and risky gambling.

• Winner-Takes-All Yield: Unlike traditional DeFi where everyone gets the same APY, the winning faction claims 100% of epoch yield , creating real stakes and strategic depth.

• Weekly Strategic Epochs: 7-day cycles (2-day deposit phase + 5-day lock/yield generation phase) create a sustainable rhythm of strategic decision-making.

THE WOW FACTOR

• Pure Skill, Zero Luck : Victory is calculated purely by game theory mathematics, not randomness

• Your Money is Always Safe : Withdraw your principal anytime, even if your faction loses

• DeFi Meets Game Theory : The first protocol to implement Pentagon Nash Equilibrium in on-chain yield competition

• Engaging Weekly Battles : Transform passive holding into thrilling strategic warfare

• Low Barrier, High Engagement : No fear of losing principal drives participation

HOW IT WORKS

1. Deposit USDC into the protocol

2. Choose a Faction to back with your deposit (SHADOW, BLADE, SPIRIT, PILLAR, or WIND)

3. Yield is Generated from the total pool via DeFi lending

4. Pentagon Scoring calculates each faction's score: Score = Target TVL - Predator TVL

5. Winning Faction (highest score) claims 100% of the epoch's yield

6. Yield is distributed proportionally to winning faction members

7. New epoch begins, strategy resets

LINKS

• Live App: https://5xfaction.vercel.app

• Pitch Deck: https://www.canva.com/design/DAG-Z49Sqro/SwPyZzCY8dlz4XQo2e4xhg/view

• Demo Video: https://youtu.be/mqhWj-ZsDBc

• Documentation: https://yeheskieltame.gitbook.io/5xfaction/

BUILT WITH

Arbitrum, Solidity, Next.js, TypeScript, wagmi, Privy