Decentralized finance has taken the world by storm — allowing users to access financial systems built entirely on blockchain-based technologies.
Users can participate in financial processes without intermediary interference with just smart contracts. Mainstream decentralized platforms have funneled millions in value of distributed assets from people without KML or AML verification.
The transformative impact DeFi is having on the global financial economy
The total value locked in DeFi grew to $195B, up from just $15B in December 2020. With more innovative d’Apps constantly popping up, this number is only poised to grow, and one of the cornerstones of DeFi’s explosive growth is liquidity pools.
Liquidity pools provide the foundation for many popular DeFi protocols currently on the market. Protocols like borrow/lend protocols, yield farming, automated market makers (AMMs), and synthetics.
DeFi has gained popularity so rapidly because liquidity pools provide DEX platforms with the on-chain activity and volumes to compete with centralized exchanges (CEXs).
However, if you’re holding onto your favorite tokens waiting for the right time to sell, it can be a stressful experience. On one side, you see stories of people making great returns via liquidity mining while others must deal with impermanent loss.
Introducing POP! Platform’s single-staking model
POP! provides reassurance and confidence during these exact scenarios.
In most markets, investors hoard tokens with no intention of selling. At the same time, they aren’t willing to participate in liquidity pools because they’re afraid of getting burnt by insecure smart contracts and rug pulls
Both scenarios are attributed to a lack of trust in partnerships.
POP! (Proof of Partnership) platform solves this mistrust issue by locking respective tokens together and providing single-sided liquidity in a trustless mutual liquidity pool.
POP’s! transformative single-sided staking model is well evidenced by the partnership between Unido ($UDO) and Bridge Mutual’s ($BMI).
In the partnership, both parties locked $100,000 in the value of their native tokens creating a $200,000 BMI/UDO Liquidity Pool on Uniswap as reflected on POP’s! platform for user participation. The MLP lasted 90 days, with MLP farmers earning bonus rewards for their respective native tokens.
The POP! process
The participation process is a breeze. Willing parties need only apply for a mutual liquidity pool on POP!. Once the review process is conducted, and a governance vote is passed, they can create their MLP via POP’s! smart contract. LP tokens are locked once a minimum liquidity threshold is predefined for participating tokens for a set period.
Both parties will, however, be able to add bonus incentive tokens. Users will then participate on either side of the MLP, providing liquidity to the registered token pair.
When farmers finally exit their LP, the POP! smart contract then rewards the farmer with POP! tokens.
- POP’s! key features are helpful in the evolution of DeFi:
- POP! will run the mitigating impermanent loss via a rebalancing mechanism, i.e., selling the surplus side to buy back the deficit side.
- POP! is 100% managed by smart contracts negating the need for centralized custody.
- Both the MLP taker and maker are charged a 1% fee depending on their token holdings. This fee is added to the POP! Vault. 20% is sent to the development wallet, while 80% is used to purchase ETH and POP! for additional liquidity to the pool.
- POP! Token has an incentive for users to earn rewards from the POP! Candy farms.
Contributing to the future: A fitting conclusion
POP! Platform has a crucial mission. To add to the sustained progression of DeFi by increasing accountability and responsibility and reducing impermanent loss.
A transparent and trustless MLP not only provides a layer of holding protection that gives platform users discretionary coverage and cryptocurrency asset protection.
This approach not only makes the blockchain more efficient and resistant to attacks, it also has the additional benefit of improving the platform’s liquidity size.
POP! is a platform that allows 2 projects to objectively display mutual trust and commitment to each other, by locking their respective tokens together and creating a trustless Mutual Liquidity Pool (MLP). In addition, it grants POP! users the opportunity to provide single-sided liquidity, in the form of their favourite token, by matching them with another POP! user and adding their joint liquidity into the MLP.
Powered by Faculty Group, POP! aims to set a new golden standard with regards to partnerships, and how they are perceived in the digital asset ecosystem.