Highlights — AMA on Brú Tokens
Hello! Brú Finance Community!!
We are excited to share the insights of our AMA event, “Brú Tokens and Early Adopter Program,” which went live on our Twitter on 19th April 2023 at 8:00 PM IST.
In this event, the founder of Brú Finance interacted with community members and talked about their updates, Brú Tokens, Early Adopter, Partnerships, Roadmap, development, future plans, communities, etc.
First of all, thanks for your enthusiasm and engagement during the event.
Let us now move forward to learn more about this enriching event.
After a warm welcome and brief introduction by our founder, Ashish Anand, we started our event.
Ashish Anand provided a valuable session on the emergence of DeFi and how it’s transforming the global financial ecosystem. He also highlighted Brú Finance’s progress in the DeFi and Crypto space. Ashish addressed all members of the Brú Finance community, informing them that they can acquire Brú Tokens, which are currently not listed on any exchange or launched in the market, by becoming Early Adopters or Liquidity Providers to the platform. By doing so, they will also become eligible for additional benefits.
Further, he stated that Liquidity Providers could earn a significant yield by providing liquidity to the Brú protocol. For example, if an LP invests $1000 and the ROI is 8% p.a., the LP will receive $80 as interest income for a one-year loan. Additionally, the LP will receive 10% in free Brú tokens worth $100. However, the yields may fluctuate depending on market supply and demand.
It’s essential to note that anyone can become an LP, and the liquidity is backed by Real World Assets at a rate of 140%, making it free from volatility risks.
When asked about the token’s initial price and how it will be determined, he responded that it would be difficult to predict as it has not yet been launched. He said that the token’s value would be determined by market forces, and speculation at this point would be premature. However, he confirmed that the Brú tokens have an expected issuance date of 6 months, and liquidity for the token will become available at that time.
He conveyed that Brú Finance’s tokenomics is designed to encourage the long-term token holders that would incentivize the adoption of its ecosystem. Brú Finance has an initial supply of 250 million tokens, with 15% reserved for the team members. However, the team’s tokens will be subject to a 2-year vesting period.
To prevent a sudden influx of tokens into the market, most tokens will not be immediately released but, instead, subject to a vesting schedule of 2–5 years. This strategy aims to promote long-term holding and ensure that the tokens are not dumped into the market, which could decrease the token’s value.
Ashish conveyed that the Brú Finance token has been designed as a deflationary token, with at least 2% of the total supply burned each year based on a risk management strategy. Additionally, Brú tokens are designed as cashflow tokens. The protocol will share any surplus or profits with long-term token holders, providing economic incentives to hold the token. The borrowers who hold Brú tokens will also receive discounts and other benefits.
Apart from the team’s reserved tokens, other token reserves are set aside for early supporters, investors, treasury, rewards, and liquidity programs. He declared that these measures would encourage wider adoption of the Brú Finance ecosystem, benefitting both token holders and the protocol.
He further talked about the Token utility. He mentioned that the utility of Brú tokens spans both Traditional Finance (TradFi) and Decentralized Finance (DeFi). These governance tokens provide voting power proportional to the amount of tokens held by the holder. He further confirmed that Brú Finance is the only on-chain lending platform that straddles both TradFi and DeFi realms.
Ashish stated that Brú Finance has already gained significant exposure in the market and has received an overwhelming response and offers from other DeFi protocols. However, the adoption of Brú Finance tokens ultimately depends on the protocol’s fundamentals and how many users can benefit from its offerings.
He expressed that Brú Finance is focusing on increasing the number of borrowers and lenders on its protocol. The company aims to build upon successful business models by creating a DeFi protocol that does not depend on token prices but on real economic activity.
When asked about the staking mechanism, he mentioned that Brú tokens had been specifically designed to pass on any surplus to long-term token holders, functioning similarly to a staking mechanism. As a result, these holders will reap economic benefits from the Brú Protocol over the long run, and these would attract more lenders, thus creating a bootstrap ecosystem.
Ashish Anand also throws some light on the revenue model of Brú Finance. He mentioned that Brú Finance generates revenue from the difference between the interest rates that borrowers pay and lenders’ interest rates. This revenue is then shared with the long-term token holders in their ecosystem, who will benefit economically from the Brú protocol in the long run.
The Brú Finance mainnet is live now, and the token will be available in the market in 6 months. Brú Finance is currently looking to expand its platform and partnerships to Africa, Latin America & South East Asia.
To know more, Join our community and stay updated with the latest news about Brú Finance.
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