Dear valued users of Suipearl,

Many users encountered challenges in comprehending the concept of Suipearl and PRL token because the information was scattered across various sources such as the website, documents, Twitter, and Telegram. Hence, this article aims to provide a clear explanation of Suipearl and PRL in a manner that is accessible to all, enabling everyone to fully grasp and appreciate the essence of Suipearl and PRL, as well as the benefits users can anticipate when contributing liquidity to the platform or holding its token.

Why did we name the token “Pearl”?

It is not a randomly chosen name for the native token of Suipearl. The team came up with that name when we accidentally discovered the process of pearl generation from oysters.

Pearl oysters create pearls when a hard particle is coated with calcium carbonate (nacre) after entering the oyster. The oyster produces this nacre to cover irritants that enter its shell, which can be an invading worm or a bead placed there by a human pearl farmer. This intricate process is what gives rise to pearls. The market value of a pearl is determined by several factors, primarily the weight and maturity of the oyster, the environmental conditions during its growth, and the length of time the pearl incubates inside the oyster. The pearl becomes more valuable the longer the oyster covers the irritant.

The Sacabam team proposed the idea of conducting a fair launch of 10,000 PRL to the FlowX team. Additionally, 0xJulian - CPO at FlowX, advised us that we could create a dual-token system with PRL - OSTR, which would make the narrative behind Suipearl more compelling.

His idea was as follows:

• Total Supply: 10,000

• 02 tokens:

  • PRL (Pearl): the main token of the protocol. It’s a transferable token backed by assets in OysterVault. Each PRL token would be more valuable over time.

  • OSTR (Oyster): the 90-day vesting token of PRL. In order to convert OSTR to PRL, the user has the option to choose a conversion time ratio. The longer the conversion time, up to 90 days, the higher the conversion ratio from OSTR to RPL will be at 1:1

• The meaning of using dual tokens above is: the farmer needs to wait patiently for oysters to create pearls. The longer they wait, the more valuable the pearls are.

(If you observe the details, you'll notice that the PRL - OSTR duo-token borrowed the concept from the FLX - xFLX duo-token of FlowX Finance.)

And then, you can discover the rest of the story. We allowed users to farm out 10,000 PRL - OSTR within the first 45 days on https://suipearl.fi/oyster-cage. If users want to make a quick profit, they can choose to convert OSTR → PRL instantly, but they need to sacrifice 9/10 of their PRL in order to receive 1/10 PRL that can be sold right away for profit. However, if users are patient enough, like a pearl farmer waiting for the maturity of a pearl, they can choose a vesting duration of 90 days to receive the full PRL allocation.

After 45 days the genesis farming, we distributed a total of 1,800 PRL and 7,200 OSTR to our early users. The final farming date was on Friday, November 10, 2023. It was originally anticipated that all users would choose a vesting duration of 90 days, meaning that the last batch of PRL would be released to the market on February 8, 2024. However, in reality, not all users opted for the 90-day vesting period, which resulted in a decrease in the overall PRL supply from 10,000 to 8,554.5 as of the time of writing.

Why did we choose to fair launch token PRL?

After the successful launch of SCB meme token, the Sacabam team is continuing in an experimental direction by launching PRL - the native token of Suipearl, a yield aggregator on the Sui Network. The basic idea is that initially, the team would conduct a fair launch of 10,000 PRL tokens to all early supporters within the first 45 days through farming. We appreciate the concept of a fair launch because it promotes fairness, with no allocation for the team, no commitments, and no unrealistic roadmap with the intention to artificially inflate the token's value and then sell it off. This same spirit was present when we launched the SCB token. Initially, there were no utilities and roadmap, but it opened up possibilities for SCB to grow. With the support of the community, features such as Aquarium - an entertaining zone for SCB holders, and Sacabam NFTs were introduced.

However, it seems that some users have misunderstood the purpose of PRL. They believed that it is merely a derivative or a "second token" of the Sacabam team, with the sole intention of driving SCB to great heights. However, we would like to clarify in this article that:

"We take all product launches very seriously. PRL is not just the second token of the Sacabam team. It has its own purpose and journey. We firmly believe that PRL is a critical component that enhances the Sacabam ecosystem, and SCB - PRL tokens can coexist prosperously on the Sui Network.”

How can PRL determine its intrinsic value?

We cannot name a token as “Pearl” and try to convince people that those tokens are trully pearls with millions of USD each. It doesn’t work that way. So that’s why we need to transact the value to PRL in some manners: the value creation of Suipearl platform, the utilities of token itself, and the network effect from holders.

Suipearl, a yield aggregator on Sui Network

The initial official product released is Offshore, which offers a variety of strategic vaults to maximize yield for liquidity providers. Currently, Offshore utilizes autocompound strategies on top of FlowX Finance and Scallop, which consistently provide higher APR than the original pools. If you would like to delve into the specifics of how Suipearl accomplishes this, you can refer to this article.

At present, Offshore has generated $12,117.28 in returns for users. The team has established a user-friendly performance fee structure, with a 0.5% deduction from the earned yields (not from deposits), amounting to $60.58 in platform fees. We will discuss how PRL tokens can potentially benefit from these fees towards the end of this article.

We also can project how things will go in the future, at the time Suipearl has $100mil TVL in Offshore, the average APR is 20% and the performance fees were adjusted upto 5% deduction from the earned yields:

• Total earning for users: $10mil * 20% = $2mil

• Performance fees for Suipearl platform: $2mil * 5% = $100k collected to treasury of Suipearl

If you are interested in understanding how the fees collected, amounting to $100k, are reflected in the market cap of PRL tokens, please read the PIP-1 proposal at the end of this article. To determine a projected fair price for each PRL token, you can examine case studies of other yield aggregators, as outlined below:

• Beefy Finance: TVL = $170mil. BIFI token market cap = $30.81mil

• Yearn Finance: TVL = $340.9mil. YFI token market cap = $289.51mil

• Harvest Finance: TVL = $10.73mil. FARM token market cap = $23.22mil

• Suipearl Finance: Projected TVL = $10mil. In relation to this, what should be the fair market cap of PRL token?

According to the roadmap of Suipearl, we will continue to explore new strategies and services to increase the total value locked (TVL) for the protocol. Some possibilities include:

• Yield leverage farming

• DAO token war to acquire more governance tokens of other protocols and gain control over them (e.g. xCETUS of Cetus or xFLX of FLowX Finance)

• Lending

• Any other potential opportunities

The utilities of PRL token

PRL currently has one primary function: serving as the governance token of Suipearl. This means that PRL holders have the ability to participate in voting for improvement proposals regarding this protocol. Some examples of these proposals include voting on modifications to the structure of performance fees, determining the allocation of fees to benefit PRL tokens, voting on the implementation of new protocol features, and deciding on operational costs, among other matters.

It also means that overtime, Suipearl will shift to a Decentralized Autonomous Organization (DAO) where democracy is prioritized, and all PRL holders can have a say in shaping the future of Suipearl through their voting power. The DAO will also ensure that it serves as the best platform to guide Suipearl in the right direction that aligns with market demand and provides long-term benefits to all PRL holders.

So, how can this utility affect the PRL token price? People who benefit from the Suipearl would want to have control over this protocol. To do this, they should accumulate as many PRL tokens as possible, as it will maximize their voting power on every proposal of Suipearl. This demand is realistic and has an impact on the PRL token price.

Currently, there is no fully functional voting platform available on Sui Network like snapshot.org. However, we are collaborating with partners such as Suipiens or Movernance to address this issue. And we hope all PRL holders can raise their voices about Suipearl protocol via their votes in the near future.

The network effect

According to Investopia, the network effect refers to the idea that the value of a product or service increases as more users join. This can lead to a better user experience and can also attract new participants who want to benefit from the network. The concept of the network effect is relevant for well-established cryptocurrencies like BTC, ETH, and SUI, as well as meme coins like PEPE or DOGE, which often lack utility and value creation but heavily rely on the popularity and strength of their communities to determine their value.

This concept also applies to PRL token. The more people see PRL as a valuable asset, the more value the PRL token can gain from the network effect. This requires a series of educational and marketing activities to attract more holders. To achieve this, we need the collaboration of all community members to effectively communicate the message to the wider community online.

PIP-1: the First Improvement Proposal of Suipearl

From this point onwards, we will refer to Pearl Improvement Proposals as PIP (similar to SIP - Sui Improvement Proposals). Given that there is no voting platform supporting DAO functions as mentioned earlier, and in the early stage of Suipearl DAO there are still too many speculators who only jump in this protocol for quick profits but don't contribute much to the long-term success of Suipearl, the initial proposal (PIP-1) should be made by the development team of Suipearl, because the team fully understands the philosophy of Suipearl and wants to ensure it stays on the right path. This proposal will be implemented immediately. And over time, as the community of PRL holders matures, the team will gradually empower the PRL holders community to vote on changes to Suipearl in upcoming voting campaigns. Here are the key points of this proposal:

We believe that Suipearl is currently in its early stages with a relatively small TVL of less than $500mil. As a result, we would like to conduct an experiment where there is no staking vault for PRL to earn performance fees from the protocol. Since Suipearl Offshore and other protocols on the Sui Network offer high yields (up to 50% for stablecoins in SUI coins), people do not necessarily require additional staking rewards. Instead of having a staking vault for PRL, we propose using all the performance fees collected from the protocol to buy back and burn PRL tokens, which will ultimately reduce the supply of PRL in the long run.

This "buyback & burn" mechanism is also aligned with the concept of a "Pearl" in the PRL token, where holders can consider PRL as a crypto asset that can accrue value over time, similar to holding BTC without any yield from staking.

Those who support this approach can envision the potential outcomes: if Suipearl attracts more TVL → it will generate more fees → resulting in a greater amount of PRL being burned. This will increase the scarcity of PRL tokens and make Suipearl more decentralized, as anyone wishing to take control of the protocol would need to hold a significant amount of PRL tokens.

Taking an overview of the past two months with Suipearl and considering the future of this protocol, we can observe the following pattern:

• At the start, PRL holds no value.

• Anyone can contribute liquidity to farm PRL by making small deposit fees.

• Those who have doubts about its long-term potential participate in pumps-and-dumps in order to maximize short-term profits.

• Those who recognize its long-term value choose to accumulate and hold more PRL tokens.

The absence of staking for PRL also presents an easy and interesting concept for newcomers to participate, as they only need to hold PRL in their wallet and can vote on all proposals (PIPs) that directly benefit them.

All the information regarding the "buyback & burn" process will be provided in the upcoming announcement from the team. If you would like to have further discussions about PIP-1, please visit https://t.me/sacabam/22852.

Some final thoughts

We understand that every decision comes with its advantages and disadvantages. Making a wrong bold move could potentially jeopardize the entire project. That is why we have opted for a "trial and error" and "experimental" approach, taking small steps, gathering feedback, and continuously improving. This iterative process ensures that everything is on the right track for Suipearl.

SuiPearl is a yield aggregator for the Sacabam meme project. With SuiPearl, users can enhance their yield earnings by utilizing various farming strategies on the Sui network.

• Website: https://suipearl.fi/

• X channel: https://twitter.com/suipearlfi

• Telegram Group: https://t.me/sacabam

• Sacabam website: https://sacabam.fun/