An innovative approach to add lending services and user reward schemes in the DeFi system is introduced by P2P Finance. Its team is willing to increase the engagement of the Cardano community by providing passive income opportunities, building affiliate networks, supporting P2Pswap-based margin trading and motivating DAO stakeholders.
The CEO and Founder, Christof Waton, believes that
“Cardano blockchain has the best opportunity to get established on the number one position as the ecosystem will be new. We are honored to introduce the P2P Finance DeFi ecosystem on Cardano blockchain and look forward to its launch with smart contract deployments after the Alonzo upgrade.”
Christof Waton, CEO and Founder of P2P Finance
Trading derivatives, offered in a decentralized way on P2Pswap, avoids manipulated liquidations used in centralized crypto exchanges for crypto borrowers or margin traders. Supported by decentralized price feeds, P2Pswap provides a safe and transparent environment. Both, traders and borrowers, have to ensure enough collateral to keep leveraged positions open or to buy back the borrowed asset.
Moreover, P2Pswap protocol allows users to trade via decentralized smart contracts to avoid order books of a centralized exchange. To achieve this, the trade is done with other users’ provided liquidity. Thus, Cardano blockchain can ensure high-frequency trading and scalability.
The P2P Finance DeFi Ecosystem brings a whole new opportunity for earning multiple passive income streams and rewards, which were not available in the Decentralized Finance industry sphere before.
For example, P2P Finance is the first DeFi Ecosystem to incentivize its affiliate users in an innovative way. With 3 affiliate network levels and 5 user status tiers (Address Milestones), the system rewards the user not only for reaching a certain milestone, but also when their personal network reaches a specific status tier. The users can enjoy rewards in free P2P tokens and 10% kickback program.
Another example is rewarding elected members of the Decentralized Autonomous Organization, based on their voting levels. These include Smart Contract Audit, Farming Pools and Cardanow IDO Launchpad. In total 3 DAO levels are set depending on voting scope. The higher the DAO level, the more passive income the member can generate. In addition, it allows them to earn up to 10% of P2P staking fees and add more percentage rewards to the existing buyback program.
One of the hottest trends nowadays is peer-to-peer lending and this feature is available for all P2P Finance users. This is an alternative investment strategy that allows investors to lend cryptocurrency to borrowers in exchange for interest. At the same time, borrowers’ crypto assets are counted as collateral to secure lenders’ investments. The daily interest rate can reach up to 2% with a maximum of 28 days contract duration.
Lockups are a common pain when it comes to staking. In P2P Finance users can withdraw their staked amount or claim their rewards without any delay. But the progressive rewards system motivates users to stake longer with the retain aiming up to 30% of the annual percentage rate.
Asset liquidity is a necessary condition for any exchange. For this purpose, liquidity providers are motivated to bring their capital to the platform, by rewarding them with liquidity points. Liquidity points are provided to determine a person’s stake / share of the liquidity pool, which receives the swap fee on each trade.
To motivate users to provide liquidity to P2Pswap, P2P Finance launches farming smart contracts (also known as Liquidity Points Staking) With farming, people deposit their received Liquidity Points in a farming smart contract, which has a fixed reward. Based on the stake / share of liquidity points in the smart contract, the user gets his cut. The larger liquidity pool stake is owned by the user, the larger share of trading fees are earned.
The next step forward, “Cardanow” IDO launchpad is planned to make an official public debut for incubating Cardano Native Token projects. The well-functioning LaunchPad protocol will ensure a safe environment for retail funding without depending on intermediaries. Contributed funds will be vested, managed, and made available to the project gradually in order to prevent rug-pulling and exit scams.
“The implemented rewards and passive income innovations are aimed to motivate users’ activity on P2P Finance and let them enjoy their daily journey in our DeFi Ecosystem. We are confident to continue engaging our Cardano community by delivering best class solutions the DeFi industry can provide”
states Christof Waton.
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About P2P Finance
P2P Finance is the first DeFi Ecosystem on the Cardano blockchain that introduces affiliate incentives and brings transparency by utilizing decentralized price feeds to execute liquidations for margin traders on P2Pswap. Every action on P2P Finance is audited by partners and performed on the Cardano blockchain.
Founder & CEO P2P Finance