BTC Proxy Vesting & Development Update
Dear Community and Participants,
Thank you for your patience and giving the team time to adjust and fine tune the project as we try to fit the protocol into the marketplace. This time was well used to evaluate our current offering and adjust it to better suit your needs and to position it for future success.
Our staking and rewards programs will be undergoing a change to be more competitive and to offer a superior product that addresses the needs of both the stakers and the project. Trading governance token rewards for liquidity is nothing special in DeFi. It’s actually very common, with protocols and DAO’s offering varying yields across the spectrum. Upon deeper analysis, the premise of borrowing liquidity is an unsustainable mechanism as reward rates eventually have to normalize at some point especially when Total Supply of the token is only 21M. We needed to find a methodology that made better sense without giving away the farm for something that is only temporary.
In two week’s time we will be ready to release a single new staking contract that will address these issues as we transfer the rewards from the liquidity providers to the stakers. PRXY will utilize a forked contract from the Olympus DAO to offer a reward rate that will enable the participants to initially earn over 2500% APY by way of compounding. The core of this staking contract consists of a ‘reward rate’ that is issued to the pool every epoch and allows participants to earn compounding interest almost 3x daily.
When staking PRXY you will also receive sPRXY (staked PRXY is a rebase token) at a 1:1 ratio. Adding this address to your wallet will allow you to track your PRXY balance which increases with the rebase as your PRXY earns its rewards inside the contract. sPRXY will also be utilized in conjunction with partner protocols in the future as collateral for additional borrowing so your staked assets/rewards can be magnified.
Back to the issue of using rewards for temporary liquidity, PRXY protocol will shift its direction from ‘borrowing liquidity’ in the traditional DeFi model to utilizing Bonds to ‘purchase liquidity’ for the treasury to create the liquidity pairs for the expected BTCpx that will be coming online.
To touch upon the topic of the tokenized BTC, we are pleased to announce that 3–4 institutions that are in the pipeline will be able to supply all the BTC the protocol needs in the short term. The complimentary process of selling Bonds to provide the treasury with ETH/USDT/USDC/WBTC will enable the DAO to control its own liquidity pairs with the BTCpx that will be provided by the partner institutions.
A release date for the vesting tokens for all private sale participants will be set for November 19, 2021 and we hope that the attractive staking rewards of 2500% APY will be enough to drive sentiment in a positive direction.