Introducing Evolution Finance: A Self Sustainable Locked Liquidity Protocol and Lending and Borrowing Platform

Dear Ferrum Community,

Many may recall a “secret DeFi protocol” we have been working on behind the scenes and would be revealing soon…well the time has come to reveal it!

Introducing Evolution Finance, a self- sustainable locked liquidity protocol and lending/borrowing platform, by Blockchain Strategy Team.

In this article, we provide an overview of Evolution Finance, introduce key concepts, and preview what is to come.

A Short Introduction to Evolution Finance

In short, Evolution Finance (“Evolution”) is a self- sustainable locked liquidity protocol and lending/borrowing platform, powered by the EVN token. Evolution is targeting the biggest segment of the DeFi market — lending. Evolution uses the renVM layer and other wrapping tools such as Binance Token Canal to port ERC-compliant assets beyond BTC, essentially building a a margin funding/lending network for LTC, FIL, DOT, BCH, XRP, etc. on Ethereum, with the aim of capturing a massive and yet untapped market of lending/borrowing any top 20 asset.

But as important as the vision is the launch itself

Evolution Finance believes 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.

DeFi, Evolved

DeFi, for all its incredible promise, has been plagued by rug pulls, hacks, exploits, and all manner of other risks. Nonetheless, the fact that billions of value are locked in DeFi protocols demonstrates that people are hungry to utilize this promising disruptive technology.

At Evolution Finance, their goal is to do DeFi better. Backed by a network of public facing and well-known industry partners, and by fully auditing and testing our protocol before launch, EVN seeks to remove much of the unnecessary risks from your standard DeFi protocol. You could say they represent an evolution in DeFi…

But beyond the team and backers, the technology itself is designed to be fair and transparent from the start.

The EVN Token and Fair Launch

Evolution Finance is powered by the 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, this means that 100% of the token distribution the partners that funded the build will be given the opportunity to market buy tokens at the time of release/contract launch.

A Community First Ethos

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 experienced stagnated growth or their APYs tapered 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 tokens eligible to receive rewards, in Stage 1: ONLY the first $5,000,000 of EVNY distributed will be eligible to participate in staking and share the 1% “fee on transfer”. This model will ensure that the dilution of rewards though increasing liquidity will not be an issue.

But do not worry if you miss out on being part of the initial $5,000,000 of EVNY LP deposits during Stage 1, we have plenty more coming for EVN holders and stakers! In addition, the EVNY LP limit may be raised in the future if partners and governance decide this would be best for the project’s continued growth.

Internalizing Arbitrage

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, Evolution Finance will implement a novel smart contract, built by Ferrum Network 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.

Backed by Industry Veterans and Destined for Growth

Evolution Finance is an initiative by known partners and public figures in the space — Lead by Blockchain Strategy Team and including DAO Maker, Ferrum Network, The Acardia Group, Cipherblade and others — 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.

Ferrum Network’s Role in Evolution Finance

When we were approached to become the lead technology partner for the locked liquidity foundation in this exciting new project, we were absolutely honored and excited. Getting to work alongside industry giants like Blockchain Strategy Team, DAO Maker, Arcadia Group and others, has been an incredible experience.

Our role in Evolution is really threefold: first, we are proud to say that the locked liquidity smart contracts for Evolution Finance are powered by Ferrum Network. However, huge credit must also be given to the Evolution auditors, Arcadia Group, who have been instrumental in helping the development process through their comprehensive smart contract audit.

Secondly, Ferrum is also proud to bring our incredible community and network of supporters to Evolution Finance. Finally, as part of our role as developers for Evolution, we will also be one of the early LPs in Evolution Finance. This means we have “skin in the game” and stand by it. At the end of the day, we love working on new and valuable technology, and truly believe in the mission of Blockchain Strategy Team with Evolution Finance and are honored to be a part of it.

Benefits of Evolution Finance to Ferrum Network

Aside from the fact that the Ferrum community will be among the first to know about the project, Evolution presents numerous benefits to Ferrum.

For one, we believe that the Evolution Finance locked liquidity contracts will demonstrate to the entire crypto community that Ferrum Network has some of the strongest developers in the industry. As a true “DeFi” protocol, Evolution Finance has allowed us to show the world that Ferrum is as strong on the tech side as we are in other areas like business development and community engagement.

Secondly, the opportunity to work with other industry veterans has exposed us (and will continue to expose us) to new communities and new opportunities. This is how we grow the Ferrum Network brand in an organic and sustainable manner.

Third, and perhaps most significantly, 100% of the profits that Ferrum Network earns as an early LP in Evolution Finance will go towards FRM buybacks and/or staking rewards for FRM holders. This means that Ferrum Network’s share of the 1% fees generated by the locked liquidity protocol will be converted into FRM, thereby providing additional FRM buy support on the secondary market. This bought back FRM can be used for things like staking rewards, marketing initiatives, and a host of other activities that will be voted on by the governance committee.

Therefore, the entire Ferrum community will indirectly benefit through the rewards distribution program.

What’s Next: Completing the Audit, Final Testing and Launch

As stated above, the Evolution Finance smart contracts are still under audit. Based on the results of the audit, there will be need for additional development work and testing. That said, we are working as quickly as possibly to bring out the product in a safe and secure manner.

While we have no specific date on the launch, we are targeting the end of January. During the intervening period, we will promote Evolution Finance and expose it to the wider crypto community.

Thank You

We want to give a special thanks to the Blockchain Strategy team for bring us their project as well as DAO Maker, Arcadia Group, Cipherblade and everyone else involved in the early stages of Evolution. This project has shown us that different teams can come together to build something amazing. It has been truly inspiring!

Finally, thank you to the Ferrum community for ongoing support you have shown over the past 2.5 years…we are still just getting started!

Very truly yours,

-Ferrum Network Team