PembRock Finance: Deep Dive into the Only Leveraged Yield Farming Project on NEARPembRock Finance: Deep Dive into the Only Leveraged Yield Farming Project on NEAR
tl;dr
- About Meta Yield and PembRock fundraising campaign
- What is PembRock
- How does leveraged yield farming work
- How does $PEM Buyback Mechanism work
- PembRock tokenomics
About Meta Yield
Over a week ago we announced the launch of Meta Yield enabling fundraising through liquid staking. Today, there are already over 30 (and growing) fundraising campaign launch requests on our kickstarter from projects spanning Music, GameFi and Community.
Meta Yield helps new projects on NEAR to get funded by the community The financial back-up leverages Meta Pool’s liquid staking protocol to de-risks the financing of these projects. In exchange for their support to the project, backers will receive a certain number (proportional to their support) of the project’s native tokens. In turn, projects receive the necessary support to launch their product/dApp.
PembRock Finance is the first project to have a fundraising campaign on Meta Yield. PembRock is not another Decentralized Exchange! It is the first leveraged yield farming project on NEAR.
About PembRock Finance
As mentioned before, PembRock Finance is the first leveraged yield farming project built on the NEAR blockchain. PembRock aims to build the most user-friendly leveraged yield farming protocol on the market. As well as receiving a $75,000 grant from the NEAR Foundation, Pembrock has partnered with Ref finance, Big Brain Holdings, Move Capital and Alameda Research.
PembRock will also integrate with other leading NEAR native projects in the future.
https://www.youtube.com/watch?v=70lkL-v8xNg
How does leveraged yield farming work?
Leveraged yield farming is a mechanism that allows farmers to lever up their yield farming position, meaning they can borrow external liquidity to add to the farm. As a result of having more liquidity, leveraged yield farmers can gain more rewards and a larger share of the trading fees than otherwise.
There are two main types of users in leveraged yield farming projects:
- Lender: Lenders earn passive income by depositing their crypto into vaults which fund liquidity pools. This process is a bit similar to staking; by lending funds to the pool, users get rewards from fees charged to leveraged yield farmers.
- Leveraged Yield farmer: Yield farmers can maximize their profits by opening a leveraged yield farming position. In other words, yield farmers borrow additional funds from the lender, paying a small amount of interest on their profits. In return, they would be farming by multiplying their yield by up to 3 times.
The Lender Use Case
- Connect NEAR wallet to PembRock
- Go to the “Lend” section.
- Select the amount of USDT you wish to deposit.
- Approve and sign tx
User can be up and running in a matter of minutes, with no threat of liquidation, and returns are automatically reinvested — multiplying gains!
The Leveraged Yield Farmer Use Case
This is an opportunity to take advantage of up to 3x leverage, maximizing returns while being able to adjust his position in response to any changes in the crypto market:
- Connect NEAR wallet to PembRock
- Go to the ‘Farm’ section.
- Select the token you wish to deposit and the token you wish to borrow.
- Put up your funds and then farm with leverage up to 3x.
- Monitor your funds and adjust your position any time you want.
Rewards are automatically re-invested for even greater returns!
And not that’s all, cause users can earn with PembRock Finance in 3rd way: $PEM staking !
Earn via the protocol buyback mechanism instead of extra emission.
How does $PEM Buyback Mechanism work?
The backbone of the token is its buyback mechanism. 100% of the protocol’s profit will be used to buyback $PEM tokens from the market. The protocol profits are accrued from the following 3 sources.
- Farmers are charged 10% of their yield farming rewards.
- Lenders are charged 10% of their borrowing profit.
- Every time a position is liquidated, 5% of the position’s value is paid as a fee.
PembRock Finance will take 10% of the total earnings (Farmers + Lenders) to buy back $PEM tokens. That creates of buying pressure yearly and all buyback tokens will be distributed among $PEM holders who have staked.
$PEM captures all the value created by the protocol compared to most DeFi tokens which serve only governance purposes. The higher the PembRock Finance TVL, the more buying pressure for $PEM, in turn creating a sustainable DeFi token..
$PEM Tokenomics
$PEM is the native token of PembRock Finance. The token distribution is as follows.
Total Supply: 160.000.000 $PEM
DAO Balance for future projects 40%
Most of the tokens are allocated to the DAO for future projects. This ensures the continuous development of the ecosystem.
IDO 5%:
- Live Meta Yield — 3.000.000 $PEM
- Live Skyward — 3.000.000 $PEM
- Postponed BocaChica Mars — 1.000.000 $PEM
- Postponed SmartPad on Aurora — 1.000.000 $PEM
Community Treasury 15%
Tokens will be distributed among stakers with a 60 month linear unlock.
Long term investors 16.25%
A portion of supply for long term investors whose tokens will be subject to a 12 or 24-month lockup.
PembRock Labs Incentives 12.5%
Tokens for the team will only start unlocking after 48 months. The team proportion is relatively small compared to most projects.
LP Incentivization program 7.5%
Only 7.5% of the total supply is allocated to LP incentivisation. This mitigates the problem of excessive token emission faced by most of the DeFi protocols. Mercenary capital would not be able to farm and dump.
Early PEM contributors & NEAR Ecosystem 2.25%
Tokens for advisors and contributors will only start to unlock from February 2023.
Initial LP on Ref.finance 1.5%
To ensure adequate liquidity for trading.
More info on PembRock’s tokenomics is available here.
In any case, all of the above is no financial advice or recommendation. Make sure to read Meta Pool Disclaimer before engaging in any financial activity with Cryptos.
About Meta Pool & stNEAR
Meta Pool is the leading liquid staking solution for $NEAR and wNEAR token holders to earn staking rewards and maintain their liquidity to participate in DeFi protocols on NEAR and Aurora.
Users staking $NEAR and wNEAR with Meta Pool receive in exchange a NEP-141 standard token, stNEAR (staked NEAR).
stNEAR simultaneously accrues staking rewards and unlocks users’ liquidity enabling them to participate in DeFi activities (e.g. lending, farming, borrowing) on NEAR and Aurora.
Stake $NEAR on Meta Pool (~11% APY)
Get stNEAR (Yield-bearing token)
Go DeFi on NEAR & Aurora (More APY and more rewards)
Meta Pool solves the problems associated with Proof-of-Stake networks staking: illiquidity, immovability and accessibility. Meta Pool also aims to distribute staking in multiple validators to improve censorship-resistance of the NEAR network.
With a TVL of ~10 Million $NEAR and growing, Meta Pool has become in just a few months a cornerstone element of the NEAR ecosystem, making it more decentralized and therefore more secure, as well as making $NEAR liquid.
In February 2022 Meta Pool has been successfully audited by BlockSec, confirming the implementation of the highest security standards.
For more information visit https://metapool.app.
Join Meta Pool & stNEAR Community
If you have any questions or wish to be part of our project, don’t hesitate to join our official platforms and reach out to the team!
