PINE Token Utilities
The PINE token is the main token of Pine Protocol, and plays and important role in all aspects of the Pine Protocol ecosystem.
The PINE token can be divided into three different categories
First we have the standard PINE token. The PINE token is currently available on the Ethereum and Polygon networks, is fully transferable, meaning the token is tradable and can be transferred between wallets.
Users can stake their PINE tokens and generate vePINE. The longer you stake PINE, the more vePINE you generate. When users unstake their PINE they lose their vePINE proportionally to the amount of PINE they unstaked.
Example: if a user staked 1 PINE and earned 2 vePINE, and unstaked 1 PINE they would lose their 2 vePINE. Whereas, if a user staked 1 PINE and earned 2 vePINE, but only unstaked 0.5 PINE, they would only lose 1vePINE.
The final type of PINE is the sbPINE. Users can burn their PINE tokens and instantly receive sbPINE tokens. sbPINE tokens are non-transferrable, and “Soul-bound” to the wallet that burned the PINE.
Use case #1 — Auto-Roll Over
Borrowers holding PINE tokens are able to utilize the “auto-rollover” feature. If a user has less than 1 day remaining on their loan, and has a balance owed, PINE tokens can automatically be converted to ETH or Matic to top-up the loan and extend the duration of the loan.
Each time Auto-Roll over is used, a fee of 10 PINE is charged and permanently Burned.
Users holding large amounts of PINE are also able to receive a waiver of the fee.
Use case #2 Access to White-label technology
Partners who wish to white-label the Pine Protocol technology will be required to hold a certain amount of PINE tokens in order to access the technology and be officially supported by the Pine Protocol team.
Use case #3 — Staking and Burning
Holders of PINE tokens can either choose to stake their PINE tokens to generate vePINE or permanently burn their PINE tokens in order to receive sbPINE. Stakers and Burners of PINE also receive PINE token incentives
Use case #4 — Governance
sbPINE and vePINE are used within the governance of the PineDAO. The PineDAO governs the Pine platform and the protocol, along with usage of the treasury funds. vePIne and sbPINE require PINE tokens to be staked or burned.
Use case #5 — VIP membership tiers
Holdings of vePINE and sbPINE will be used to calculate a user’s membership tiers. Having a higher membership tier will unlock exclusive benefits. More information about the membership tier will be released soon.
Use case #6 — Fee discounts for borrowers
For borrowers on the Pine Platform, holding PINE tokens will result in discounted protocol fees relative to the total supply of sbPINE and vePINE.. The full formula for the discount can be found on our docs.
Use case #7 — Boosted rankings for lenders
The order in which similar loan offers are displayed are done in a round robin fashion. Holders of sbPINE and vePINE will have a 1 in X chance to be displayed near the top of the orderbook without being placed at the bottom of the queue.
This is just an overview of some of the use cases of the PINE tokens, and we have many more features that have yet to be announced! For a full breakdown of how the above are calculated, you can view this information in our whitepaper here:
About Pine Protocol
Pine aims to become the gateway for real yield in NFTfi and the Pine team’s mission is to build technology that allows for asset-backed financing to be conducted transparently and efficiently on-chain. The protocol is a non-custodial decentralized asset-backed lending protocol that allows borrowers to borrow fungible digital tokens from lenders using non-fungible tokens as collateral. Built with an open and composable architecture, the protocol can be integrated easily with any NFT and NFTFI platform.
