What is Proteo De Fi?, What is its purpose and what value this product can bring it to us, as users? But to answer those questions, first, what is De fi and what does it mean?
In few words, De Fi or Decentralized Finance is a new, transparent, censorship-resistant, global financial ecosystem without intermediaries and easy to access, where each user has total control of their assets.
The objective of decentralized finance is to provide a global and transparent alternative to centralized financing of all existing financial services. These financial instruments give the power of choice back to the consumer.
Now, back to our first question, Proteo is a DEX, or a decentralized exchange, born as a solution to centralized economy problems such as corruption, inflation or taxes, leveraging the solutions offered by cryptocurrencies, blockchain, and DeeFi offering a cryptocurrency with very interesting characteristics. As a parentheses, you can find in the up-right corner, our video explaining what is a decentralized exchange and its differences against a centralized exchange.
Proteo is a visionary DeFi cryptocurrency, pioneer in Elrond, where its issuance design, supply and token burning, represent solutions to the economy and provide the opportunity of having a more just income in the cryptocurrency world.
It is a digital asset easy to exchange for another crypto-asset with the capacity to create sources of income, like green mining using an auto-stake pool and liquidity mining, among others. Proteo is a decentralized exchange, same as Maiar Exchange and you probably wonder why you should use Proteo, when you already have Maiar?
Well, one of the key design points of Proteo DeFi architecture is that, they use Maiar DEX liquidity pools instead of their own.
In this way Proteo will add value instead of competing for liquidity. One project will have single LP token in the Maiar DEX and both farms available: Users will be able to choose between earning MEX on the Maiar DEX or earning PROTEO on Proteo DeFi.
This will result in higher APR on both sides as well as higher total liquidity in the Maiar DEX. More liquidity means less spread in prices, which in turn means buying and selling is more effective. Proteo is not designed to compete with the innovations of the Maiar DEX but they are here to complement them, as they say on their website. Their treasury will always trust and utilize MEX and EGLD assets. So, let's have a look on how Proteo complements the Maiar DEX:
PROTEO is an Exclusive Elrond DeFi Suite, and takes advantage of the robustness of the Maiar DEX to carry out operations. It expands the possibilities of the DEX with new products for investors that add value to the DEX’s already established solid tools. Some of the key points of the project, are: The DAO Proteo DeFi. It will have the second decentralized swap in the Elrond Network, where it will complement Maiar DEX, strengthen the ecosystem, and offer appealing DeFi products that will enable the increase of liquidity in Elrond ecosystem. It will also be the landing platform of different tokens in Elrond Network, facilitating access to a DAO where participants can make use of all the services and exchange PROTEO for other assets in the ecosystem.
PROTEO allows users to access several sources of income of digital assets and to be part of the governance through sPROTEO token.
In order to make all this possible, PROTEO DeFi developed a Treasury to manage and develop the funds of the DAO including PROTEO, LP PROTEO-EGLD, LP PROTEO-MEX, LP EGLD-MEX and LP EGLD -USDC tokens.
sPROTEO holders will be able to make proposals regarding management and PROTEO burning.
Another key point is that The Proteo DAO platform will sell PROTEO Bonds for EGLD or MEX, allowing investors to buy at a discount.
It is the strategy in which Treasury offers users PROTEO with a discount and a 10 days expiration for an APY with a compound interest.
An important key is also the staking which refers to investment mechanisms in which tokens are locked up in order to obtain rewards from the dynamic issuance of new PROTEO, with an APR of daily issued tokens.
The Proteo Auto stake pool will allow you to auto-compound. This means, your staked PROTEO compounds, without you doing anything, automatically. You save time and fees in the process.
Thus, Proteo DeFi will be a safer decentralized finance platform with a deflationary issuance model. In addition, when depositing PROTEO, the user will obtain the sPROTEO token as backup. It will allow access not only to the Proteo DeFi DAO governance, through the use of the sPROTEO token as an equivalent to the investor’s participation in the PROTEO-sPROTEO pool.
This will make the DAO safer, and the investor will obtain yield for the daily issuance of tokens. The APY is calculated with a smart contract that distributes the profit based on the daily issued tokens.
Therefore, the percentage of yield will be calculated daily and its benefits will be proportional to the number of tokens locked up in the platform.
In PROTEO DeFi, the user will easily and immediately exchange PROTEO for other tokens within the Elrond Network ecosystem, creating an economy within the ecosystem and making available a mechanism, which help blockchain developers promote their tokens generating more yield for their users, with an alternative solution for the exchange of tokens in the Elrond Network ecosystem.
Also, by using blockchain technology and smart contracts, PROTEO DeFi will provide its users the opportunity to obtain loans in cryptocurrency, like EGLD, through sPROTEO token.
Using an NFT liquidator, users will be able to receive and pay loans quickly, where the interests generated by such loans will go directly to the lending wallet in order to increase yield and capitalization.
Basically, you will be able to use sPROTEO as collateral, to request a loan. While you enjoy your newly borrowed funds, you continue increasing your PROTEO holdings.
Another thing the project is promising, is a dual farming which is a mechanism of rewarding participation where liquidity providers obtain 2 cryptos instead of one, as a reward for their liquidity. In this case, the LP will receive rewards in the following ways: First, LPs receive part of the trading fees collected from the two tokens. These rewards are paid in different daily intervals and calculated automatically in the position of the LP. They are paid in the 2 assets of the pool.
After providing liquidity, LPs deposit their LP tokens to earn PROTEO and the token from the different Elrond projects, according to the campaign in Proteo DeFi.
It is an excellent method for the holders to increase their currency reserves.
Dual rewards can increase the yield of liquidity providers by increasing the group APY. Rewards received in two digital currencies can offer LPs greater asset diversification and potentially reduce volatility.
Following their roadmap which you can find it on their website, all the milestones should be implemented by the beginning of next year.
It's a promising project and we would like to highlight to you to do your own research before investing your money.
All the information presented in this article are from their official website, as well as from their white paper. Thank you for reading to the end. Until next time, take care of your money!