Introduction to Evolution Finance: Part 1
Evolution Finance is a self-funded project that will change the way users interact with DeFi locked liquidity and money markets. Evolution Finance is targeting DeFi lending of the top 50 ERC20 altcoins and ERC-wrapped native coins, with fair token distribution model at launch. We believe a fair token distribution is key to building the community that a dominating DeFi platform needs. At launch 100% of EVN tokens will be made available through liquidity pools on Uniswap.
Evolution Finance is an initiative by a public network of partners, using EVN tokens to run the project and reward the participants. There is a fixed supply of EVN and therefore no infinite mint exploits, 100% of tokens unlocked at inception (which means fair price discovery), and fair distribution:
● No incentives to stablecoin whales who have high farming power,
● No token sale, no pre mine, *no team tokens,
● No central control: all decisions made via multi-sig and then governance,
● An actual business model earning fees generated on lending and borrowing services.
As there are no team tokens available with 100% token distribution the partners that funded the build will be given the opportunity to market buy tokens at the time of release/contract launch.
Evolution’s EVN tokens are maximizing the limits of fair distribution; all tokens of this capped supply project are available in liquid pools at launch. Further, to strengthen the adoption and accelerate the community growth, EVN tokens adopt a transaction fee model which rewards LPs and holders.
Each time a transaction is made, 1.7% of the transaction is charged as a transfer fee by the smart contract and apportioned as follows:
(i) 1% is rewarded to liquidity providers,
(ii) 0.4% is burned,
(iii) 0.2% is rewarded to EVN stakers, and
(iv) 0.1% funds the development operations.
Thus, while the lending platform service comes into effect, the token’s design itself attracts and maintains a community by creating incredible benefits for LPs and holders.
Improved Liquidity Generation
The function of using locked liquidity is part of the “Liquidity Generation” token model. Past such launches have faced early success but stagnated growth or APYs they taper off drastically from dilution. The key point of failure has been falling APY as liquidity grows and large LGE’s with unknown APY before launch.
To combat this issue Evolution Finance will limit the LP tokens eligible to receive rewards, in Stage 1: ONLY the first $5,000,000 of EVN LPs distributed will be eligible to participate in LP staking and share the 1% “fee on transfer”. This model will ensure dilution of rewards though increasing liquidity will not be an issue.
Do not worry if you miss out on being part of the initial $5,000,000 of EVN LP deposits during Stage 1, we have plenty more coming for EVN holders and stakers. The LP limit may be raised in the future if partners and governance decide this would be best for the projects continued growth.
The existence of arbitrage can potentially be a net-loss event for any ecosystem, as arbitrage enjoyed by traders with no interest in EVN extracts value from the ecosystem. To counter this risk, we will implement a smart contract that will generate arbitrage trades (and volume) between tETH and ETH pairs as the price difference occurs.
ONLY this smart contract will be privileged with a 1.2% fee, instead of the 1.7% standard fee, with the 1% distributed directly to LP’s and 0.2% to EVN stakers. The arbitrage profits from the smart contract will be used to further stimulate the ecosystem.
Destined for Growth
Evolution Finance is an initiative by known partners and public figures in the space who are tired of the flaws in DeFi. This initiative takes advantage of their network, experience, security and exposure. As a natural by product, the project has already settled major collaborations and partnerships.
At inception the project will be managed by the partner network and approved via multi-sig signers to ensure no malicious activity, Evolution Finance will move to full decentralized governance control with the launch of the primary lending and borrowing platform.