What is Pera Finance?
Income farms, while attractive to speculators who want to get rich quick with their holdings, often fail to create a long-term community and economy due to the “huge” supply-side liquidity of reward brands.
So many yield farms could soon see significant momentum due to high rewards but cool off as users switch to other platforms due to lower returns and lack of token usage.
Pera Finance, a yield farming protocol based on Binance Smart Chain (BSC), seeks to revive the token economy of projects struggling with this problem.
Income farming What?
To understand what yield farming is, let’s first break the term down into yield and agriculture. These are two separate words that, when combined, create a form that will help users maximize profits from idle cryptocurrency.
Revenue is the profit users make by using a particular platform or protocol to monetize their cryptocurrencies. This is achieved through liquidity mining, peer-to-peer lending, staking, or other profitable processes. Farming is the process of manually or automatically moving money between different platforms to maximize profits.
Today, the term yield farming is most commonly used in the crypto space to describe investing funds in platforms that reward staking. These winnings can be cashed out with the same token wagered or a variety of other assets.
What is Pera Finance?
Pera Finance is a protocol that takes a more sustainable approach to income farming and uses decentralized trade competition to motivate traders.
The platform is said to be the first to balance income farming incentives and long-term token support successfully. Their strategy is to provide long-term holders with a solution to create rewarding value without significantly increasing the selling pressure on the tokens used as a reward.
During development from mid-2020, Pera Finance uses rewards to motivate everyone involved in the ecosystem to encourage the adoption of tokens and protocols from third-party projects. The project’s overall goal is to make the DeFi sector more sustainable by helping other platforms better motivate their users while maintaining a balance between the supply and demand of the native token.
The platform’s PERA token is used to share the profits generated directly by the PERA network and the profits of other partner projects using the Pera Finance solution. As a result, PERA owners achieve multi-asset profits. Token launched on July 8, 2021, as a BEP-20 asset on the Binance Smart Chain.
PERA was founded jointly by Eren Yecan and Utku Çeli̇kok. Yecan is a former university lecturer and entrepreneur with a penchant for decentralized technologies. At the same time, Çeli̇kok is an engineer and veteran of the crypto world with a deep interest in neuroscience and computer modeling.
How does Pera Finance work?
Pera Finance rewards three key stakeholders in the PERA ecosystem with various returns, including a portion of the total value traded on the network and a portion of the PERA token issuance. In general, rewards are distributed to network participants as follows:
- Liquidity provider PERA: 0.75% per trade and 50,400 PERA / day.
- Top 10 PERA traders: 0.5% per trade and 19,600 PERA per day.
- PERA holders: 0.75% per transaction.
Additionally, PERA stakeholders can earn multi-asset rewards from other projects in the Pera Finance ecosystem. These rewards will kick in and continue to grow as more projects incorporate PERA’s sustainable profit-sharing system.
Awards are distributed to the recipients without gas fees using a particular smart contract. The system is designed to provide enough APY (Actual Annual Return) to everyone involved without creating excess liquidity on the supply side – a challenge most (if not more) profit-making businesses face today.
The PERA token is the first to benefit from the solution, but Pera Finance’s yield farming protocol can be easily integrated into other projects. Pera hopes this will help usher in DeFi 2.0 by providing a sustainable solution that increases demand-side liquidity.
What makes Pera Finance unique?
Pera Finance has developed many unique features and enhancements to create a sustainable yield farming protocol that is attractive to many third-party projects. Consists:
Trading competitions are a popular way to increase the liquidity of a particular token by incentivizing traders. So far, however, these contests have been limited to a centralized platform that can effectively track and reward participants.
Pera overcomes this with its Pera Sorting Algorithm algorithm, which rewards merchants for generating volume through powerful filtering and a sorting approach that minimizes storage footprint and fees.
Multiple sources of profit
Pera leverages multiple sources of profit to incentivize various stakeholders in its ecosystem, including sharing a portion of the value traded on the network, in addition to daily rewards for releasing tokens (from inflation) and multi-asset rewards from partners of the Pera Finance ecosystem.
Pera believes that by rewarding various stakeholders from multiple sources of income, the project can successfully balance incentives and token demand to establish a sustainable token economy.
Follow calculation from PERA, their solution can achieve 107% to 510% APY returns depending on market conditions and ecosystem partners.
The PERA solution is designed to integrate many existing and future projects easily. The protocol is expandable and modular so that projects can control some of their operating parameters.
At home at home
According to Coinmarketcap