Intro
Last updated
Last updated
PolyFlow Liquidity Pool is a real utility driven yield creation mechanism not based on speculation; PolyFlow built smart contract addresses to facilitate transactions, cutting out the 3rd party processor and retaining processing fees to be paid out as yield. Fully autonomous smart contract driven pool ensures greater decentralization, lower custodial risk, lower third party costs.
PLP can be considered a risk-free DeFi income product suitable for on-chain cash flow management. This is an unprecedented breakthrough, as previous DeFi yield models inherently carried risks. For instance, financial products based on decentralized exchanges always faced the risk of impermanent losses, and collateral in on-chain lending products could be impacted by volatile underlying asset prices. These are very common scenarios within the DeFi ecosystem.
PLP directly generates risk-free income from transaction fees in real payment scenarios. For example, in a payment gateway context, when consumers make payments to the smart contract address within PLP, liquidity providers can earn payment-related rewards by settling funds in case of merchants requesting early payments.
Most importantly, this process is risk-free, with the yield determined by the ratio between liquidity providers’ funds and total transaction volume. PLP can offer attractive fixed or flexible-term financial products, supporting supply chain finance, wallet settlement networks, stablecoins, insurance, and other innovative applications within the PayFi ecosystem.
Auto-generated contract-based asset vault with non-privileged access
Automated vault assignment program to maximize vault reusability and leverage the degree of decentralization
Fund solely controlled and guarded by contracts
Status informed and executed by non-privileged system
Assets are stored in decentralized vaults and stay intact
