According to a recent report from Chainalysis, over $2.8 billion was lost to decentralized finance [DeFi] rug pulls in 2021 alone. A colloquial term for “scam”, rug pulls account for 37% of the scam revenue for the aforementioned year, a whopping increase in percentage from its 2020 report of 1%.
Citing the adoption of an unsustainable reward system as one of the many reasons for the failure of these projects, the need for a solution arises. Thanks to the growth of the DeFi space, a ton of protocols have been launched to change the narrative by offering sustainable, long-term rewards for farming, one of such is the emerging ProtoFi Protocol.
The ProtoFi Protocol
Born out of calculated study, observation, and active participation in several protocols spanning different networks, ProtoFi is the first community-powered and user-owned automated market maker [AMM] built on the Fantom Opera blockchain that places emphasis, primarily, on sustainability, long-term existence, and value creation. Aimed at offering users these features, ProtoFi will allow investors, per the project white paper, to own a piece or portion of the protocol, and by extension, the profits generated.
Blazing off on an untrodden path on the Fantom blockchain, ProtoFi seeks to achieve this unprecedented feat through a dual token system—the PROTON [PROTO] and ELECTRON [ELCT] tokens.
Serving distinct purposes on the protocol, the PROTO token, according to the founding team, can be seamlessly bought, staked, and sold. Owning and subsequently staking this token is the only way to earn ELCT.
ELCT, on the other hand, is a representation of participation in the protocol. Owning this token means holders will receive a yield for as long as it is held. The yield, however, is garnered directly from the profits generated by ProtoFi through deposit fees, token swap fees, as well as other revenue-generating activities undertaken by the protocol.
“ProtoFi ... has the power to turn ponzi scheme-modeled projects into sustainable, long-term protocols”
ProtoFi has integrated the “Quantum Supply” feature which is a system that adjusts the PROTO release rate in conformity with the present market conditions. Aimed at protecting investors from the activities of questionable people, guaranteeing longevity and sustainability of the protocol, as well as the combating of market manipulations, Fission Pool has been deployed to ProtoFi. The current method of fee distribution, Fission Pool, will allow these investors to deposit ELCT and receive colossal rewards in the form of stablecoins. Plans are underway to enable owners of the ELCT token to actively take part in the governance of the protocol.
Piggybacking on the idea of the infamous BSC-based decentralized application [DApp] Moneypot, the ProtoFi development team has remodeled the mechanism, guaranteeing, in totality, a secure solution with superior performance.
Dispelling the power large holders or “whales” have on the crypto market, as evident in the current market movements, ProtoFi as a next-generation solution to DeFi problems has implemented ProtoShield—an advanced transaction watchdog that sets a limit to the number of PROTO tokens that can be sent in a single transaction. In addition, ProtoFi, in an attempt to curb the practices of bots and APRs, has introduced ChronoLock, a mechanism that sets a mark on the frequency of farm harvest that is allowed at a time.
As part of its goal to offer gargantuan rewards to token owners and shareholders of the protocol, ProtoFi, in consortium with The Fantoms, will launch an NFT pool.
With presale spots filled out in approximately 44 minutes and a software audit carried out by one of the leading blockchain security companies, CertiK, ProtoFi, through the creation of Fission Pool, and accompanying features like Quantum Supply, ProtoShield, and ChronoLock has the power to turn ponzi scheme-modeled projects into sustainable, long-term protocols.