PerlinX Summary for PERL Token Holders
How to Stake PERLs for Rewards
DeFi is easily the hottest space in crypto today. Within a few months, the total value locked in DeFi has grown to USD $7.32B and the market of DeFI projects to USD $13.5B (and growing fast!). PerlinX is our way of providing our token holders with immediate and compelling value by riding the DeFi wave.
We are bootstrapping PerlinX with a generous incentives program to reward users who stake their PERLs (also known as ‘providing liquidity’) with more PERLs and Balancer tokens (BAL) immediately. Rewards in UMA tokens (UMA) are also coming very soon.
If you had staked your PERLs on Wednesday 26 August, you would have earned an Annual Percentage Yield (APY) of 1143.93% (without BAL and UMA rewards added yet). We are finalising an official dashboard, but you can check the available yields and other stats yourself on this community generated dashboard.
Currently, you will need to stake the dollar value of PERL and one of the other assets in the pools (DAI, BUSD, BAL, TUSD and WETH) on a 1:1 basis (e.g. $10 of PERL + $10 of DAI). PerlinX will be upgraded soon to allow you to stake just PERL.
Swap your PERLs: Read our Swap Guide to convert your tokens to the updated PERL on PerlinX if you haven’t already done so. If your old PERLs were deposited on Binance before 2020/08/24 4:00 AM (UTC), they would have been automatically upgraded to the new PERL.
Setup a wallet: You need a MetaMask wallet to connect to PerlinX. You can store your PERLs, ETH and other ERC20 tokens for staking here.
Start Staking: When you stake your PERLs in any one of the liquidity pools (i.e. provide liquidity), you will receive a Liquidity Provider Token (LPT). You can then stake this LPT to earn the rewards. Read our Providing Liquidity Guide and Stake & Reward Guide with graphics and in-depth instructions on how to participate in PerlinX liquidity pools.
One of the key advantages of DeFI is composability - where different DeFi products can be combined to become something greater than the sum of their parts - commonly referred to as “DeFi money lego”. DeFi allows anybody to be a liquidity provider, earn yield on deposits, borrow, and trade assets. It is censorship-resistant and immutable, meaning no third party can stop or reverse a transaction (depending on how truly decentralised a given DeFi platform is).
PerlinX leverages this composability to integrate functionality and rewards from Balancer Labs and UMA Protocol, allowing you to stake, provide liquidity, create synthetic assets and trade assets of any kind. Beyond our immediate incentives program, more long-term incentives will be coming online over time to reward long-term holders and stakers. We are also working to bridge traditional trade finance and legacy financial products to DeFi, drawing in significant new capital through trader adoption.
Balancer Labs belongs in the ‘liquidity protocol’ category subset of DeFi, with other projects in the space such as Uniswap and Bancor. It is known as an Automated Market Maker (AMM), where liquidity is pooled in a smart contract and trades are executed against the smart contract rather than against buyers or sellers (counterparties). PerlinX allows users to pool together their PERL in a liquidity pool/smart contract, and then rewards them for providing the liquidity. These rewards come from (1) incentives we offer (e.g. PERL, BAL and UMA) and (2) Balancer trading fees that go into the shared pools.
UMA Protocol belongs in the ‘synthetic asset protocol’ category subset of DeFI, with other projects in the space such as Synthetix. In traditional finance, the only way to obtain exposure to an asset would be to either (1) buy it or (2) trade derivatives of it. Previously, this had significant barriers to entry, including costly fees, difficulties accessing the necessary brokerage accounts, and other geographical barriers. Synthetic asset protocols such as UMA are DeFi’s solution to lowering the barriers to entry for asset exposure, such as cost and market access. Through UMA, PerlinX users will soon be able to create ERC20 pxTokens that are a synthetic representation of an asset (e.g. pxGold, pxOil, pxCarbon, or any other asset).
If you want to learn more about Liquidity Pools like PerlinX, read this article which provides a very good overview.
Last modified 2yr ago