Passive Income is redefining DeFi yield generation
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Passive Income is redefining DeFi yield generation

John Williams
John Williams

Existing passive income models are inherently flawed. For one, they cannot maintain financial viability since most ecosystems solely rely on transaction fees to sustain operations. This lack of real economic activity and the sole reliance on financial transactions typically result in stagnation, negative growth over time, and ultimately, the end of the project.

Passive Income (PSI) is deploying solutions to solve these problems. The blockchain project touts itself as being able to drive passive income through several economic activities. Real use cases translate to a value-based system that enables a sustainable passive income model. The project describes itself as follows:

“PSI is an innovative blockchain token that aims to re-imagine the concept of Decentralized Finance (DeFi) yield generation; we do this by upgrading the concept of yield generation to Decentralized Financial Passive Income generation.”

That being said, the Passive Income ecosystem is made up of three core pillars – Holding, Tokenized Assets, and Financial Services/Yield Generation.

Holding

This is the most frictionless way to earn passive income in the PSI ecosystem. The network charges a 1% fee on every transaction. This fee is then immediately distributed to token holders via smart contract.

Tokenized Assets

In addition to generating income from “holding” PSI tokens, participants in the network can use their assets to get more income. PSI charges a 1.5% fee on all transactions that are defined as tradable assets. However, unlike “holding,” the fee, in this case, is split into two equal parts of 0.75% each. One part is sent to PSI holders, while the other is used for buyback integration or liquidity.

Financial Services

The third core pillar of the PSI ecosystem is “financial services.” This includes activities such as lending, borrowing, betting, saving, and deposits. A 0.75% fee is applied to transactions in this class. This fee is also split into two parts, with 0,375% going to PSI holders.

A Robust Ecosystem for Passive Income

Away from its foundational pillars, the PSI ecosystem features a plethora of products that generate passive income for users.

So far, the project has launched its decentralized exchange (PSIDEX) and they will launch their own pre-sale platform (PSIPAD), it’s under development at the moment. Its NFT-as-a-service (NAAS) product was also recently unveiled. Other upcoming products include Marketplace, Lend, Bond, Bets, NFTs, and Tokenized Assets.

Speaking of NFT-as-a-service, the non-fungible token (NTF) industry has experienced significant growth in recent times. From celebrities to entrepreneurs, and even traditional firms, the sector attracted more than $2 billion in the first quarter of 2021.

PSI’s NAAS product will allow real estate companies to tokenize properties. The solution is a one-stop-shop that guides companies from ideation down to implementation. Although real estate is the starting point, the solution could easily extend into the toy market, and renewable energy sector, amongst others.

The blockchain firm has already partnered with Omari estate. More recently, it sealed a deal with the Omni estate group. Omni is the first partner to explore the NAAS product.

Through NAAS, PSI is pioneering Europe’s first NFT real estate marketplace. By integrating tokenized assets that can be instantly traded, yield generators can earn from the best yield-generating real estate assets. For some perspective, data suggests that the global real estate market will grow from $2687.35 billion in 2020 to $2774.45 billion in 2021.

Meanwhile, PSIPAD allows token holders to generate passive income from projects that launch on the presale platform. Furthermore, PSIDEX is the world’s first frictionless yield decentralized exchange. Beyond its unique fee aggregator, governance of the exchange is in the hands of token holders.

Conclusion

Experience has shown that many cryptocurrency projects are not built to last. While users may be drawn by seemingly mouth-watering offers, such models are unsustainable. Passive Income is moving away from the typical one-source revenue model. By deploying an ecosystem with multiple options to generate passive income, the project is priming itself up for success.