Heyyo, Degen! How are you doing? Are you farming and staking? Btw, we got a new super-duper project for you called Gro Protocol. It'll help you make money without getting f@cked up. Let's go in order, okay?
PWRD is a secure savings product that offers high yields with low risk on stablecoins.
– PWRD consists of a basket of stablecoins (DAI, USDC, USDT), so the risk is diversified. To further reduce the risk.
– Notice, bro! Vault protects PWRD against stablecoin depegging or protocol exploitation, but it's still possible that PWRD users will lose funds if USDC or Curve Finance goes to zero (even though it's unlikely)
– Technically, PWRD is designed like a stablecoin. But it is more stable because Vault absorbs any fluctuations in the prices of the stabelcoins represented in PWRD, making it more durable than its components (DAI USDC, USDT).
– The returns are delivered to the user's wallet in the form of PWRD.
Long story short, PWRD is like an alternative to a savings account with the best interest in the market.
Now go to Vault…
Vault gives you higher yield on stablecoins and increases it with leverage. Gro Protocol optimises the yield using its Yield strategies (e.g. Curve).
Vault helps degens who need higher returns and can cope with a bit of extra risk. Vault holders protect PWRD, and their reward increases as more assets are invested in PWRD.
1) Yield Optimisation
Gro optimises returns, aka yields, using proprietary yield strategies on stablecoins that use risk tranching and auto compounding (e.g. Compound, Idle, Curve, Cream, etc.).
The strategies are regularly updated to flow into the best available strategies and optimise the overall returns. This does not require any time, thought or gas charges from the users. Yes, yes, it all happens automatically.
2) Balancing the risks
Gro can self-manage the risks associated with stablecoins and smart-contracts so that the system can generate high returns while maintaining a balanced risk profile.
3) Risk Tranching
In addition to optimizing returns and balancing risk, Gro protocol has another essential feature: risk and return tranching. This means that you can choose between higher returns or more protection (less risk), depending on your preference. Each of the two different tranches has its product.
The return from one tranche (PWRD) is transferred to the other (Vault) for protection.
The return share is based on the ratio of PWRD to Vault. This creates a dynamic incentive for Vault to take on PWRD risk. When the utilization rate is low, PWRD becomes more attractive because the cost of protection is cheap. When utilization is high, Vault becomes more attractive due to higher returns.
Oops, almost forgot about the token! GRO is the governance token for Gro Protocol. It provides a deeper interaction with the protocol, opening up the possibility of participating in the management and stabilization of the protocol.
The move to a decentralized governance model is important, and Gro will encourage active participation by holders. Also, GRO holders can contribute their vote on several protocol decisions, in particular:
– Protocol parameters (including fees or funding rates)
– Yields strategies
GRO is allocated as additional incentives for the community to provide liquidity through staking pools and various community engagement programmes.
3) Stability of protocol
GRO is used to improve the stability and security of the protocol through a combination of pools and governance mechanics. Users who provide these services to the protocol may receive additional rewards.
Maximum Gro token offering = 100 million tokens.
45% will go to the liquidity mining programme and community engagement activities.
Another 13% will go into the DAO GRO treasury for grants and repayment of protocol operating costs.
The remaining tokens will be sent to backers and significant contributors.
Gro Protocol is an excellent solution for conservative yield-farming, especially at this market stage. Making DeFi easier and more stable, comrades!
Anyway, DYOR DYOR DYOR! Here's the link; check the project yourself.