Piggy’s innovative implementation of decentralized lending protocols may provide a new paradigm for collateralized capital efficiency.
Hong Kong, Hong Kong–(Newsfile Corp. – June 27, 2021) – The promising DeFi lending economy has attracted almost all DeFi and DEX platforms, and the centralized solution to the problem of fragmentation has led to a market with high collateralization rates, reduced asset liquidity and gradually increasing lending difficulties. To address this systemic flaw, Piggy has innovatively implemented a decentralized lending protocol that allows users to pledge BNBs to obtain interest-free loans. Unlike other DeFi lending programs, Piggy is liquidated through the use of a stable pool mechanism rather than an auction, which allows it to use capital more efficiently and provide loans with collateral ratios as low as 110%.
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The creation of PIGGY and the original intention of launching BSC
BSC (Binance Smart Chain), the fastest growing ecosystem in the crypto market, has a strong demand for borrowing business. However, according to the current trend of lending protocols on BSC, it has two serious problems: the mechanism of lending programs on BSC is basically similar, which leads to high interest fees paid by users, and the mechanism of lending and borrowing protocols on BSC gives hackers an opportunity to take advantage of it. Therefore, Piggy was created to meet the needs of BSC ecosystem development!
Piggy Core Benefits
Piggy is a unique addition to the Binance Smartchain space. It greatly benefits borrowers and those who want to use $BNB with maximum efficiency and security. It has the following key advantages.
0 interest rate for lending stable coins
Piggy only charges a one-time borrowing fee and a redemption fee. This redemption fee is adjusted based on the last borrowing redemption time and the borrowing fee is capped at 5%.
Lowest collateral rate in the network, as low as 110%
With Piggy, users can borrow up to 90.9% of the value of $BNB.
Robust 1:1 peg between stablecoin and USD
The agreement ensures that $PUSD is pegged to the US dollar. Holders of $PUSD can provide stability to the system. Stability providers will receive liquidation proceeds, as well as $PIGGY tokens rewarded for early adopters.
Piggy business model
1.Piggybank account: PiggyBanks tracks 2 balances: the user’s collateral $BNB amount and the user’s debt $PUSD amount.
1.1 Borrow: Users can borrow $PUSD stablecoin from the PIGGY platform by adding $BNB as collateral to PiggyBank.
1.2 Redemptions: It is the key to keep the $PUSD price anchored. When the market price of $PUSD falls below $1, arbitrageurs can “redeem” or convert their $PUSD to $BNB at a par value of $1. All redemptions in Piggy are subject to a redemption fee.
2. Stable pool and liquidation:
2.1 Stable pool: The stable pool is the first line of defense to maintain the security of the system. Users holding $PUSD can deposit into the stable pool. The stable pool provider will receive the liquidation proceeds and the early mining reward in the form of $PIGGY tokens.
2.2 Liquidation: When the collateralization rate of any Piggybank falls below 110%, the market clearer will trigger the liquidation of the stable pool. The $PUSD will be returned to the liquidating PiggyBank and destroyed. The collateral BNB will be transferred to the stable pool as a liquidation reward. Stable pool providers receive their liquidation rewards through allocation in proportion to their share of the stable pool. In addition, liquidators in the market will receive 0.5% of the liquidated collateral amount and $20 PUSD as a liquidation bonus.
3. Recovery Model
The recovery model is a system-level security mechanism. It is triggered when the Total Collateral Ratio (TCR) of the system falls below 150%.
Recovery mode is designed to encourage collateral top-ups and debt repay.It also acts as a self-defeating deterrent in its own right: the possibility of it occurring actually steers the system away from it. Recovery mode is not the ideal state for the system.
Staking is a reward for $PIGGY holders and liquidity providers. It currently has 1 Staking Pool.
$PIGGY Pool – Staking Piggy tokens to share lending and redemption fees. The Staking Pool is designed to incentivize $PIGGY holders.
PIGGY NEW FEATURES:
PIGGY launched two new LP-Pools. In order to stabilize the token price and provide additional liquidity, Piggy launched two additional LP Pools: PUSD/ BUSD, and PIGGY/BNB, stake and earn rewards in PIGGY! You can go to DODO and Pancake Swap to add the liquidity corresponding to the pair. After you get the LP Token, you can come to the platform’s official website for liquidity mining.
Stay tuned for more details.
Company Name: Piggy
Email: [email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/88833
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