We have launched new version assets insurance product for 『Yield Farmer』: Safety Helmet Borrowing Market （Version 1.0）.
Menwhile, liquidity mining borrowing reward will start at
2020/19/11 0：00 GMT+8
SHV1.0 based on the hedging logic of options to allow anyone to create any variety of token insurance products on Ethereum, protecting the value of LP （Liquidity provider）TOKEN during AMM market making. It supports multiple innovative mechanisms such as dual order placement in both private and public pools, automatic premium calculation and flexible collateralized lease etc. Any user can realize complex hedge options through the simple action of borrowing a helmets.
Following the beta version of Payaso V0.1 in October, the new version of SHV1.0 introduced a collection of LP TOKEN mining and Token insurance functions.
In the first phase, payaso will support ETH/USDT, ETH/USDC, ETH/DAI, WBTC/ETH to process “protected” loss-proof mining, and simultaneously award 4 rewards, including CRV, UNI, WBTC, and WETH.
Design of Payaso SH V1.0
- Borrowing safety helmets easily (means buying insurance against price decline)
Liquidity providers will face the risk of price decline in Defi world when they mining while options are good hedging tools. In the past, there is no simple way for miners to do this. Considering about this delimma, PAYASO SH V1.0 was designed to provide miners with “safety helmets” without complex option calculations, to make sure miners’ capital could get flawless protection only by 2 steps :
- Borrowing a specific amount of safety helmets corresponding to their deposit volume;
- Active/Destroy safety helmets after mining.
By payaso, miners could mining on UNISWAP without worrying about the assets price fluctuation.
- OTC advertising mechanism
In payaso, OTC advertiser who supply safety helmets could post ads of “supplying helmets” with specific price to attract borrowers, instead of the fixed-price settlement system of UNISWAP. This move could avoid the bad liquidity situation. OTC advertiser could choose private or public pools at their wills to place orders, which could share insurance risk. In order placement mechanism, it is preset minimum GAS fee and supplier can adjust the ads content according to the market at any time. Otc providers need to pay attention to four important indicators: the type of safety helmets, price(activation price), time , and the daily APY (rent ) to make a reasonable deal.
- LONG TOKEN
Payaso SH V1.0 has a pioneering design of LONG TOKEN for the flexible use of the supplier collateral assets. After any advertisement is claimed, two certification will be produced simultaneously: Long Token is the proof of suppliers’ collateral assets and Short Token is the proof of the insurance activation of borrowers, both of which can be transferred, destroy and deposit, solving the illiquidity problem of the supplier’s collateralized assets in traditional options. PAYASO will also access other lending platforms to offer more liquidity to Long TOKEN.
Due Date = The latest date on which a helmets can be activated, before when it is protected and after when it is expires.
Daily Revenue (Rent) = Helmet rental fee charged to borrowers, typically 0.2% to 1% of the subject property, with market-orited price for the activited behavior.
Executive/Active Price = The account of Stable Coins that can be swaped for one helmet.
Active: Start price protection and swap the helmets for stable coins at the ads’ price.
Destroy: Relinquish protection, suppliers unlocks collateral capital.
Helmets can be activated at any time before the expiry date to obtain price protection when the current price of the protected subject is lower than the price at when the subject is deposited in pools.
When the current price of the protected subject is higer than the price when subject was deposited, the helmets can be destroyed at any time and re-borrow helmets.
Peter, who holds USDT, want to exchange part of the USDT into ETH to participate in mining, but he worries about the ETH dump, meaning the mining rewards can not compensate ETH losses, so he needs a hedging tool. If ETH is 450 USDT, he spends 60 USDT to borrow a WETH helmet with an activation price of 500 USDT. A week later, Peter decides to stop mining and withdrew ETH, finding that the ETH dump to 350 USDT, so he activated the helmet, and swaps one of his ETH for 500 USDT, avoiding the price drop risk of 100 USDT and paying only 10 (450+60–500) USDT premium.
- Borrow helmets for Mining
After the supplier ’s ad is claimed, the borrowers will receive PAYA reward, the number of rewards is negatively correlated to the current dealt rate (the number of helmets activated or destroyed at the same time) of the market. That is, if there are too many insurance at the same time, the reward will decrease; if the number of insurance decrease, the reward will increase.
- Liquidity Mining
In first step, payaso support 4 LP TOKEN of Uniswap (ETH/USDT, ETH/USDC, ETH/DAI, WBTC/ETH) for mining, and support simple borrow of WBTC and WETH helmets, truly realizing lose-proof mining. In addition, within 1 week, PAYASO will start voting for the next UNI trading pair to enter the whitelist for mining. The liquidity mining reward of these 4 Uniswap trading pairs will last for 30 days.
- Governance of deposit mining
PAYASO is a firm believer and supporter of the DAO governance system of “Proposal + Vote” mechanism. The governance part will be launched within a week after the start of mining, users could voting on insurance varieties and mining whitelist of LP token.