PLM Model
PLM Model is designed to build a decentralized financial ecosystem, which is committed to unlocking liquidity from staked assets and helping achieve higher capital efficiency.
In the PLM ecosystem, users with staked assets will be rewarded the second incentive of the TFI token with the support of DAO, and freely choose to cast synthetic assets. Therefore, PLM provides users steady asset yields, and help them retain capital gain potential and access a new source of liquidity to invest in new opportunities at the same time.
On the other hand, the LP token that provides liquidity for the project pool on the DEX with AMM as the main mechanism, such as UniSwap and SushiSwap, will also be able to obtain additional benefits and rewards in the PLM ecosystem.
Working Principle of PLM Model
After completing IDO and fundraising in TrsutFi Alpha, crypto startups will, on the one hand, list the Project Token on the DEX such as UniSwap or SushiSwap, so that the token can obtain more liquidity in the secondary market. On the other hand, in order to better combine the early community governance and incentive, Project Owner will call the staking function of TrustFi Beta and launch the staking product of Project Token. We will discuss these two cases below.
l Listing on DEX:
Listing on DEX will increase the liquidity of Project Token to a certain extent. However, with the decline of market entry, newly issued crypto assets listed on DEX will inevitably face the graduate decline of liquidity. In DEX with AMM mechanism, users who provide liquidity into Project Pool are called liquidity Provider ('LP'). When they provide liquidity, they will get LP Token as a certificate. LP Token has become the key to the liquidity of Project Token, so PLM Model has added incentives for this.
In PLM Model, the Non-Fungible Token ('NFT') synthetic asset contract developed by TrustFi can convert LP Token into NFT asset according to the liquidity authority corresponding to LP Token, which is named Standard Contract. When LP authorizes Standard Contract to mortgage LP token, Standard Contract will forge NFT-A for LP. Of course, NFT-A can also be converted back to LP Token through Standard Contract. NFT-A is a valid token to participate in PLM mining.
l Staking for Rewards:
Staking locks the liquidity of Project Token to a certain extent and stimulates the vitality of early community governance. However, in the later stage of staking, a large number of Project Tokens will be released, which will have a certain impact on the value of Project Token. Therefore, in the PLM Model, the staking rewards held by the user can be locked with the support of Standard Contract to complete the casting into NFT-B and return to the user. This process will be irreversible. NFT-B is also a valid token to participate in PLM mining.
Working Principle of PLM Model
NFT-A and NFT-B play the role of the middle layer in PLM Model. The specific mining parameters will be determined after the final design of PLM. However, this can be altered by governance in the future. They can participate in PLM mining to farm Benefit Token, which stand for authorities and rights in TrustFi ecosystem. They can provide users with stable return on assets to invest in new opportunities and obtain more benefits.
The benefits for a Benefit Token holder are multi-fold:
(i) trading or investment opportunities without needing to inject more capital;
(ii) Investment priority in TrustFi Alpha and share dividends;
(iii) Retain the potential for capital appreciation of their collateralized portfolio;
(iv) Farming of TFI token by committing digital assets as collateral.
Economic Design and Core Design Principles
TrustFi builds upon some of the core design principles of DeFi projects, while at the same, introduces several new and improved mechanisms to drive platform growth. In particular, PLM Model focuses on the development of virtuous economic cycles that:
(i) Accumulate increasing value within the ecosystem over time;
(ii) Net deflationary tokenomics to reduce token supply;
(iii) Attract the inflow of value by incentivizing value participation;
(iv) Grow value distribution proportionately with value inflows;
(v) Slow down the circulation speed of Project Token;
(vi) Scale up exponentially with the addition of new staking ecosystems.
The core design principle of PLM Model takes into account the effective link with TrustFi Alpha and TrustFi Beta, which makes TrustFi BaaS Ecosystem a real community driven incubator. Under the premise of simple and easy use, it really stimulates the vitality of DAO and unlocks the potential of DeFi, and becomes an important supplement to Web3.0 infrastructure.
Community Governance
The effective operation of TrustFi BaaS Ecosystem is based on community governance and will depend on TFI tokens. TFI token holders are the decision makers for TrustFi ecosystem. The community can raise change proposals and shape the direction of TrustFi as the project progresses. The governance model envisioned is similar to corporate governance structure, where TrustFi Team act as the operating directors to execute the business roadmap, and the community provide directives on the company's vision through raising change proposals.
Last modified 5mo ago
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