PinkPea Finance founding team gave an AMA on Near Insider on June 8 and NEAR Daily on June 9 , shared [PinkPea Finance — Maximizing DeFi Alpha Hunter’s Gains] and announced product features and future development plans. The founding team of PinkPea Finance will be attending several AMA in the near future, so stay tuned!
The following is the transcript of the AMA(abridged slightly without changing the original meaning).
Q8: What is the ultimate goal of PinkPea Finance? Can you reveal some of the platform’s upcoming plans?（This question was not shown in the Near Insider organized Twitter Space due to network problem, so it is shown on this AMA’s transcript as a priority.）
Peter: The ultimate goal of PinkPea Finance is to provide users with the “second step” in DeFi. The first step was to make finance accessible to anyone. The “second step” is to empower everyone and create widespread adoption by providing powerful tools that anyone can use to capture value, and a complete set of financial services for any investor to grow their wealth.
We have a new version of the PinkPea Finance website launching soon. The latest version has an optimized page design and upgraded UX. We also plan to launch 3–5 Partner Pools. Our Lending service is currently on testnet and scheduled to go live in Q3. We also plan to launch Leveraged farming, and the Infinite Looper, towards the end of Q3. Then in Q4, the DAO and governance mechanisms will launch.
In 2022, PinkPea Finance will provide complete services for risk-averse and intermediate users. The platform will then support more complex assets and financial products in 2023, and begin to provide multi-chain support.
PinkPea Finance will also issue the PEA NFT, as I mentioned earlier, which is exciting! Each user can acquire an NFT, which works as an augmented veToken, giving the user governance rights, dividend rights, airdrop rights, and fee discounts according to the user’s NFT level. The NFTs are also rentable.
Q1: Please tell us about yourself and the PinkPea Finance project.
Peter: Hello everyone ~ I’m Peter, the Head of Marketing at Pink PeaFinance. I have over 20 years of experience in content and marketing. Since 2018, I’ve been focusing on the blockchain space with research on Web3, FinTech, DeFi, and cryptocurrencies.
It is a pleasure to introduce PinkPea Finance in Near Insider’s Space today. I will go over the project’s progress, introduce our products and functions, and outline our future development plans.
PinkPea Finance is the first fully integrated Aurora DeFi wealth maximizer. A fully integrated, automatic, seamless solution anyone can easily use to manage leverage and risk. Any DeFi user can apply multiple strategies to maximize their investments in one place.
PinkPea Finance Offers DeFi Users:
Automatic Leverage & Risk Control Looping
Optimized Leverage Farming
Lending & Borrowing
Store of Value Token
It provides users with multiple DeFi services in one interface, so they do not need to switch back and forth between numerous protocols and chains. Ultimately allowing anyone to lower costs, save time and generate additional wealth.
Q2: Can you tell us why the team founded PinkPea Finance and the problems it solves?
Peter: The PinkPea Finance team are all DeFi enthusiasts and active in the global DeFi community, using dApps ourselves daily. We developed the PinkPea Finance solution from first-hand DeFi experience of the current barriers in place and lack of product innovation. In particular, the one-dimensional nature of most products. For example, lending platforms usually only provide deposit and borrowing services for crypto assets. Borrowers typically need to take the borrowed assets to other dApps to find ways to generate alpha. Currently, it is impossible to complete a wide range of financial tasks, such as lending, farming, and trading, all in one dApp. Ultimately, this drives DeFi users to move assets back and forth across multiple protocols. In addition to the high GAS fees associated with the constant transfer of assets, users have heavy time costs incurred comparing APYs across different DeFi products and tedious operational steps that create barriers to seamless financial management. In addition, most dApps lack thoughtful ways to help reduce risk. The “degen” approach is rampant. We believe that as creators and builders in the space, we should strive to provide products that can capture alpha but also reduce risk. The awareness of these two gaps in the market led us to develop tools like the Infinite Looper, which allow users to enjoy the benefits of leveraged strategies, but simultaneously reduce risk.
Within the PinkPea Finance ecosystem, users can quickly and efficiently complete everything they need without chain-hopping or fee-watching. They can automatically save, auto-compound, lend, borrow, leverage farm, and manage risk all in one place.
Q3: Ethereum is currently the largest DeFi ecosystem with unmatched asset depth and liquidity. So, why did PinkPea Finance choose to build on NEAR’s Aurora chain?
Peter: While Ethereum remains the largest DeFi ecosystem, with a rich variety of dApps, assets, and liquidity unmatched by any other ecosystem, Gas fees of more than $10 are unfriendly to your average long-tail retail investors. These high transaction costs have started to stifle adoption and create chain congestion. Most transactions are now institutional.
We can think of Aurora as an Ethereum Layer 2 network built on NEAR Protocol, which retains many of its unique features. In addition to being fully compatible with Ethereum and seamlessly deploying Solidity and Vyper smart contracts, Aurora also has a bridge built using Rainbow Bridge technology. The Aurora bridge provides secure and reliable license-free, pass-through transfers and data transfer services between Ethereum and Aurora. Meaning Aurora can enjoy the asset richness and liquidity of Ethereum Layer 1 and provide complete support for PinkPea Finance.
The Aurora chain can process thousands of transactions per second, 50 times higher than Ethereum 1.0. The transfer of an ERC-20 token on Aurora costs less than 0.01 USD. On Ethereum, that would be 50Gwei, which is 5.40 USD on a 3000 USD priced ETH. The processing fee of Aurora is 1,000 times lower than Ethereum, and transactions have a finality of 2 seconds, which means Aurora significantly reduces the risk of preemptive trading (front-running) attacks. NEAR also uses a POS consensus mechanism, meaning Aurora is a greener chain.
PinkPea Finance provides alpha hunters with an all-in-one product suite for their DeFi needs, and building on Aurora delivers lightning-fast, low-cost transactions. This combination creates an unparalleled trading experience not on offer anywhere else in the DeFi cryptoverse.
In addition, there is another significant reason why we decided to build on the Aurora chain. PinkPea Finance shares the same values as the NEAR and Aurora teams. We hope PinkPea Finance can provide long-term sustainable development with Aurora and NEAR, helping build a safe and stable public chain ecosystem.
Q4: Please bring us up to speed with PinkPea Finance’s latest situation and achievements.
Peter: The PinkPea Finance protocol was launched on April 12th and currently supports Trisolaris and Aurigami pools, including USDC-USDT, TRI-AURORA, wNEAR-ETH, USDT-wNEAR, wBTC-wNEAR, AURORA-ETH, USDC-wNEAR……and many more. A total of 16 auto-compounding Vaults are operational.
On May 31st, we officially launched our PEA token, which coincided with launching our second PEA-NEAR vault. On June 1st, our new Boosting function went live. Users can stake PEA to receive vePEA and also boost their APY rewards. We have also completed three community airdrops that attracted more than 30,000 people to join the PinkPea Finance Telegram community and 50,000 followers on Twitter. The total number of participants exceeded 100,000. It means a lot to have such support from the global crypto community!
Q5: As a product designed to automatically generate alpha returns for users, what are the leading innovations and features of PinkPea Finance? How do you attract and retain users?
Peter: PinkPea Finance can help users quickly choose an investment strategy to suit them. We offer innovative products that cater to all levels of users’ experiences and risk tolerance.
Beginners and risk-averse users can use our auto-compounding Vaults and Lending functions to generate some additional Alpha on their assets, and these products have lower risks.
Intermediate risk-tolerant users can use our leverage farming function to achieve higher returns. PinkPea Finance also has an automatic leverage tool, the Infinite Looper, that allows users to create a set and forget leveraged strategy between a pair of assets.
Advanced users can use more complex financial instruments like options, hedging pools, and NFT mining pools.
We also have functions like Partner Pools and Boost that provide users with higher returns and added incentives from the leading projects within the ecosystem. In addition, we have plans to launch an augmented NFT that stores value, generates passive income, gives rights and provides discounts for holders. Our plan for 2022 is to launch our low-risk and intermediate products and features. In 2023, we will add more complex features to cater to advanced users.
Q6: What are PEA’s tokenomics? How can users get PEA?
Peter: PEA is primarily an incentive. For example, the earnings of various revenue pools payout in PEA. vePEA plays a governance role. vePEA holders can vote on proposals and make decisions on the development of PinkPea Finance. vePEA holders can also boost the APY of selected pools by up to 3x. PEA holders can stake their tokens to obtain vePEA.
The number of PEA tokens is 50 million. PinkPea Finance allocates 60% to reward users, 10% for early fundraising, 10% for team and tech development, 5% for airdrops to drive early liquidity, 5% for advisors, and 10% kept in a reserve fund.
How users can obtain PEA:
Users can obtain PEA tokens in many ways.
Q7: What have you done to capture value into PEA? What have you done to retain and ensure future value?
Peter: We have strong confidence in the value of PEA for the following reasons:
Current aggregators provide their high APY based on the rise of the token price. These products generally lack functions and only offer a single type of mining feature. The cost of using these products is high, and sometimes the high gas fee even masks the benefits.
PinkPea Finance represents a new paradigm of revenue aggregators pioneering DeFi 2.0. Our product offers numerous tools, such as Vaults, Lending, Leverage, Boosting, Partner Pools, and the Infinite Looper, offering sustainable high APY and expanded functionality. Our cutting-edge tools will roll out one by one in 2022 until all are live and operational.
In terms of PinkPea Finance governance, our Boosting function refers to the ve(3,3) governance model proposed by AC. Any user who wants to participate in governing must stake PEA tokens to mint vePEA. We use the staking time as a factor, and the longer the lock-up time, the more vePEA tokens are given to the user. For example, if you stake 1 PEA, you will get 0.25 vePEA for one year and 0.5 vePEA for two years.
Holders of vePEA can participate in voting for various decisions within the ecosystem and receive additional benefits. For example, if you voted for an approved Partner Pools project, you can expect to receive a token airdrop for that project. In addition, vePEA holders can boost the APY revenue of select pools by up to 3 times. They also receive a share of the revenue from Vaults and Partner Pool fees. Investors who want to participate in governance or receive the extra benefits must lock PEA to obtain vePEA. This demand for vePEA will mean numerous PEA get locked up.
As PinkPea Finance functions go online, they will continue to serve, drive, and reinforce the value of PEA. Simultaneously, this new aggregator ecosystem model pioneered by PinkPea Finance will become a new standard within the DeFi 2.0 space.
PinkPea tokenomics ensure value, drive growth, and align incentives. We designed the internal ecosystem to drive adoption but also be sustainable. We allocated 40% of PEA to drive the adoption of Vaults and Partner Pools and 20% to incentivize LP and vePEA staking.
PEA provides revenue and access to vePEA, and vePEA also shares in income. We share 2.5% of the revenue from Vaults and Partner Pools to locked vePEA holders and 2% with PEA liquidity providers.
PEA will become an essential link between users and the PinkPea Finance ecosystem, promoting and empowering each other to drive value.
Like traditional finance, DeFi comes with risk, especially derivatives and leverage. PinkPea Finance takes this seriously and believes that universal access to financial instruments is the first step in a meaningful web3 DeFi world. The second step is to create products that plan for, manage, mitigate and contain risk. We have put in place contingencies, like our insurance fund for the Infinite Looper. We set aside proceeds from the management fee to be available in case of black swan events that would affect the Infinite Looper’s performance.
In addition to PinkPea Finance’s product features, our partnerships throughout the Aurora ecosystem will attract large use numbers. We believe in projects that can bring value to the whole industry. Our partner pools are one of our ways to integrate with other protocols and simultaneously provide more incentives and rewards for our users, a perfect way to grow our user base and help our fellow DeFi projects.
In addition, PEA will soon list on DEXs and CEXs, allowing users to trade the asset on the secondary market. PinkPea Finance will also become a cross-chain dApp later in the year. The growth of users and availability across exchanges will boost the value of PEA and help to sustain positive price action.
The outlook is bright for the future performance of our PEA.
Q1: The boosting feature is kinda interesting with a defi-addict like me, but I still wonder how it works and how long does this last?
Peter: We set aside 35% of the total supply of PEA for our Vault rewards, which gives us a lot to provide as incentives over the long term. We want PinkPea Finance to be community-driven and encourage people to become vePEA holders. We calculate the different levels of boosting according to how much PEA someone has locked in return for vePEA. The different levels are weighted, and we have an equation to determine the boost level rules. A full explanation and the equation are in our online public documents. https://docs.pinkpea.finance/governance/boost
Q2: According to my knowledge, you have just launched a mainnet recently. So what are your milestones so far or the most impressive achievement that you got?
Peter: Yes, we launched on April 12th. So far, we have 16 Vaults operational, conducted PEA pre-mining, and listed our PEA token on the Aurora Trisolaris DEX on May 31st. Our PEA staking function in return for vePEA, which works with our Boost feature, is also operational.
Q3: How can I join in PinkPea DAO and what is my benefit when joining it?
Peter: vePEA holders automatically join the PinkPea DAO. DAO members can submit proposals and also vote. A proposal can cover rewards, integrations, fees, promotions, new features, practically anything! Also as a vePEA holder you will automatically enjoy our Boost feature and share in the revenue from our Vaults!
Q4: What is your upcoming plan for the downtrend season, especially the method to attract users?
Peter: We are building for the long term and remain committed to our plans. Our vision is to provide anyone with genuinely valuable, easy-to-use tools to help them generate additional income and lead to better prosperity and wealth. The intrinsic value within PinkPea Finance’s products like the Infinite Looper and our augmented NFT will attract and keep users. We are building features quite different from other projects, but we believe it is only dApps with components and characteristics that provide genuine value, like the one we have planned, that will be around for the long term.
Get in the pink with PinkPea Finance!