PERA, the Pera Finance token, will launch and list on PancakeSwap in less than three weeks, the DeFi protocol’s road map reveals.
What is Pera Finance?
Pera Finance is a multi-layered and sustainable yield farming ecosystem with an integrated full-featured options platform. It will launch on the highly scalable, interoperable, and low-fee Binance Smart Chain (BSC).
Distinctively, Pera Finance is not a fork of any other project and was built from the ground up with its custom sorting algorithm technology.
The trading and options protocol plans to be the world’s first platform for decentralized trading competition, rewarding both the supply and demand side liquidity.
Smart Contracts Audited by Halborn
Halborn—a respectable blockchain security firm and their security advisor–completed the auditing of the protocol’s smart contracts. Pera Finance’s smart contracts have an in-built volume oracle for automatically rewarding the top-10 traders daily.
Upon listing on PancakeSwap—the UniSwap alternative and one of the most active decentralized exchanges in BSC–Pera Finance would add modular integration of trading solutions to other DeFi trading platforms.
Eventually, Pera Finance will launch an Options trading platform.
The Expansion of DeFi
DeFi, as a smart contract-powered sub-sector focusing on advancing financial inclusion, has expanded to command billions.
Trackers on May 5 reveals that DeFi protocols launching on Ethereum alone manage over $75 billion of diverse digital assets. The value is higher considering the number of innovative DeFi platforms launching daily on alternative smart contracting platforms that are both scalable and low fee.
Problems Faced by DeFi Protocols
Pera Finance is strategically launching on the interoperable BSC, looking to solve problems that continuously plague DeFi in the present state.
While DeFi’s liquidity has significantly improved over the last few months, open finance protocols deliberately subsidize their supply-side liquidity. This results in degen farming which creates an unneeded vector for pump and dumps.
Also, whenever protocols subsidize their supply-side liquidity using their native tokens—most of which have no actual utility—the result is unsustainable farming for token holders.
Besides, in the current DeFi setup, no protocol actively rewards active traders that create actual demand for their liquidity.
On top of poor tokenomics and incentives, there is a need to overall the current system mostly to spark activity and make the sphere more sustainable over the long term.
The Pera Finance Solution
Pera Finance will connect liquidity providers and traders to strategically counter existing problems in DeFi.
They will also introduce sustainable DEX-based yield farming with daily competition–a common feature in centralized exchanges– to utilize the DEX’s liquidity without moving it anywhere, a divergence from the standard practice.
Also, to attract more users, Pera Finance competition rewards would be higher than those offered by centralized exchanges.
From their models, the ecosystem will be dispensing roughly $19.6k of rewards every day where winners stand to pocket $4.5k.
The objective of daily competitions will be to reward and improve the user experience for traders. The project reckons that this is critical since traders provide demand for existing liquidity.
Pera Finance will be the first protocol to launch a yield farming experience built around a decentralized trading competition.
The protocol also plans to offer customizable trading competition services for other projects in return for multiple token yields that directly benefit PERA holders.
Distinctively, Pera Finance will also introduce PERA. The token has both inflationary and deflationary mechanics. Before launch, Pera Finance’s design has been rigorously tested via multiple finance models for long-term viability.
As their Proof-of-Concept, PERA will be eventually extended to other DeFi protocols whose trading volumes (or liquidity) will likely dry up.
Edward is a finance expert that experienced the 2007 stock market crash first hand. In 2010, he discovered Bitcoin and has been a cryptocurrency advocate ever since.