Pumpy Finance, a DeFi protocol on the Binance Smart Chain (BSC), presents an opportunity for DeFi users to earn more from their liquidity tokens.
What is Pumpy Finance and PMP?
An asset management platform and yield aggregator, Pumpy finance is launching several products in the vibrant BSC ecosystem.
Pumpy Finance targets to be the number one yield aggregator with auto-compounded yields at empirical optimal levels. Accordingly, it fronts security and superior user experience.
The project’s creators also aim to build a sustainable economic model when platform tokens can serve as a medium of exchange and a store of value.
Towards that end, the protocol is releasing its native utility BEP-20 token, PMP. The token is for distributing rewards (earned from the project’s revenue) to token holders. In total, there will be 100k PMP tokens.
Out of this, 10k is for the team. For every block minted in the BSC, participants of the Pumpy Finance ecosystem will earn 0.0085 PMP.
BSC DeFi users can, for instance, farm CAKE—the governance token of the PancakeSwap, by depositing supported pool’s LP tokens. CAKE is then converted to BUSD via an exchange and distributed to LPs.
As of writing on Mar 16, each PMP trades at $505, while the protocol has a TVL of over $5 million.
Pumpy Finance is Transparent
Team members’ identities will soon be made public. It is a comfortable divergence away from some of the world’s popular DeFi protocols whose founders and investors opt to be anonymous.
Additionally, for transparency, Pumpy Finance’s code has been audited by Vidar—rigorously examining code to prevent costly exploits.
Already—and in the spirit of openness, there are three communication channels for users to discuss the project and industry-related topics.
Pumpy Finance followers can interact via Twitter, Telegram, and GitHub. From GitHub, programmers can also review Pumpy’s code.
Pumpy Finance Vaults, 2021 Plans
Pumpy Finance will launch automated and auto-recalibrating vaults enabling users to deposit their assets and farm tokens from high-yielding pools in the market.
From here, 1.5 percent of profits earned is for buying back and burning PMP tokens. The idea is to support prices by gradually reducing the supply of PMP.
In this arrangement, beneficiaries will be liquidity providers and token holders. The protocol will be charging a 0.2 to 0.5 percent fee to cover gas costs for their dynamically optimized auto-compounding as controller fees.
Entrance fees are for incentivizing liquidity provision and prevent front-running. A benefit for vault participants, withdrawal from Pumpy Finance’s vaults will be free.
Pumpy Finance team plans to add single high-yielding pools, presenting more opportunities for farmers.
It will be in line with their plans of developing an advanced portfolio analytics platform, an Initial Farm Offerings (IFO) section, and a smart assets management portal. In H2 2021—as per their roadmap, Pumpy Finance will integrate NFTs, fiat, and CEXes, complete with interoperability support.
The Growth of Binance Smart Chain
In Ethereum alone, DeFi protocols manage over $41 billion worth of digital assets. The figure has been on a steady path, exponentially rising.
Year-to-date, the TVL in Ethereum’s DeFi protocols is more than 40X, highlighting the level of demand and interest from those who are keen on earning superior yields from their assets.
However, the Ethereum network faces scalability problems. Unable to scale and accommodate the influx of new users, the BSC is a suitable alternative for projects aiming to skirt high Gas fees and spur their ecosystems’ growth.
The BSC runs parallel to the Binance Chain and is compatible with the Ethereum Virtual Machine (EVM). It uses the Proof of Staked Authority (PoSA) with 21 validators who must stake BNB. There is no minting of BNB in the BSC. However, BSC’s validators receive a share of transaction fees.
Combined with incentives like the $100 million developer fund launch, the BSC’s DeFi ecosystem is growing due to the network’s low fees. PancakeSwap now competes with Uniswap. Meanwhile, Pumpy Finance plans to be the number one yield aggregator, outperforming competitors like the Auto Farm. Join Pumpy Finance’s Telegram here.