ProtoFi, a AMM and yield farming protocol featuring enhanced asset protection is live. It has a lot on its plate - from a dual token system to dividend payout. Is it worth checking it out? Let’s dive in.
In 2020, with the rise of DeFi space, crypto startups promised users to provide simple tools for complex financial management, and their voices were heard in every corner of the crypto world. However, only a few reached the goal – many needed some time to develop.
ProtoFi is no exception. The protocol is the latest innovation in the crypto space – it was built only recently and has already passed an audit. Its roadmap contains features not yet seen in other projects: fee sharing yield, deposit fee decrement, quantum supply, etc. Overall potential is very encouraging. ProtoFi is built on the Fantom network and secured by CertiK, and the team has completed KYC procedures.
ProtoFi was founded by a professional team hailing from different backgrounds which include finance, computer science, and entrepreneurship. The startup's ultimate goal is to become a major player in the blockchain space by providing a new way of crypto cash protection from volatility and scammers and install a fair income distribution through a dual token system.
ProtoFi runs on a unique dual token system. Its primary native token, PROTO, can only be purchased on the protocol’s proprietary decentralized crypto exchange for now. PROTO has different use cases within the project's ecosystem: staking PROTO in pools formed by the token is the only way users can get ELECTRON (ELCT), a token representing a portion of the protocol's revenue originating from swap and deposit fees, plus all income generating activities that the protocol will engage in the future. Participants will also be able to use the token to buy unique, one-of-a-kind NFT collections with specific rarity properties available exclusively on ProtoFi to increase their rate of return in selected pools. This will be released in the near future according to the team. As for ELCT, all holders of the token are eligible for a share of the generated revenue from ProtoFi. The final amount of generated yield will depend on the user’s amount of accumulated ELCT and the amount of protocol generated fees.
Security is important but has not yet become the essential part of the crypto scope as the new projects tend to focus more on speed. However, the rise in hacks and market manipulation startups think twice before releasing raw products. ProtoFi offers protection from unfriendly intrusion through three specific mechanisms: Quantum Supply, Protoshield, and ChronoLock. The teams has been KYC’d and passed an audit with CertiK, a leading auditing firm with no-error-allowed policy.
In the past decade, only a small portion of crypto startups underwent such a serious check, specially before launching. That, in conjunction with other factors, led to bubbles such as the ICO boom in 2016-2017, where investors had no guarantee of the funds’ safety.
Quantum Supply is a flexible supply system that protects native assets from market swings. It changes the PROTO’s emission rate with an outlook on the crypto market situation. That way, ProtoFi kills two birds with one stone – Quantum Supply supports the token’s price and doesn’t let the bad actors de-value the asset.
Protoshield is another feature aiming to minimize the effect of whale manipulation and the “pump and dump” technique. In a nutshell, Protoshield is a monitoring system that imposes limits on token sales for the purposes of value preservation.
Farms and pools are vulnerable. Bots can infiltrate them to take advantage of APRs. Yet, ProtoFi states it aims to serve the community, share profits, and make the game fair for everyone. To achieve that, it utilizes ChronoLock, a protective mechanism for farms and pools that imposes restrictions on the harvest period to combat bot activity.
Another interesting feature that ProtoFi has is NFT-boosted Farming, which has yet to be released. Created in partnership with The Fantoms, the NFT-boosted farms offer users a chance to increase their rewards by means of the unique NFTs that will be available. There are five different rarity tiers, ranging from Basic to Legendary, that users can get depending on the size of their investment. The more funds an individual puts in ProtoFi NFTs, the higher the change to receive rarer NFTs, which in turn gives a higher rate of return in their NFT-boosted farms.
ProtoFi is not just a protocol but an ecosystem where users can trade, farm, and earn. The assets range from already well-known, such as tokens or coins, to visuals like NFT. Protection mechanisms preserve the value of a freely tradable native token and limit the influence of black swans, whales, or bots on its price. The protocol is currently in its first version, new features and upgrades are to be added in the coming months with the team already hard at work. Just recently, ProtoFi raised $300k through IDO in under 45 minutes, and has attracted over 7M of TVL in just over 3 hours from it’s launch today at 12:00 PM UTC, which tells a lot about potential and investors’ sentiment.
ProtoFi offers unique features that were not observed in other startups so far. The idea that active users can share a company's profits is groundbreaking and might serve as an example to other projects in the DeFi niche. Finally, the successful audit on launch and strong protection system makes it a safer bet for risk-averse crypto buyers. Overall, ProtoFi had a great start, and its future looks bright. That is a rare example of an early-stage project worth looking into right at its beginning.