PinkPea Finance is a NEAR and Aurora-based DeFi optimizer that allows users to save, compound, borrow, lend, and trade derivatives without any intermediaries.
Blockchain technology has finally solved a large chunk of the security and centralized headaches on various financial transactions through decentralized finance (DeFi) platforms. But the problem is, while they have solved big problems on one side, they have also created a new one on the other side by making DeFi transactions complicated, preventing more people from leveraging their benefits.
Table of Contents
Background
PinkPea Finance is a DeFi platform that aims to bring a straightforward service to its users and eliminate the steps that cause slow financial processing and higher gas fees. The platform is powered by a team with experiences in blockchain, tech development, marketing, finance, quantitative trading, corporate development, and centralized exchanges.
What is PinkPea Finance?
PinkPea Finance is a NEAR and Aurora-based DeFi optimizer that allows users to save, compound, borrow, lend, and trade derivatives without any intermediaries.
It was established to enhance users’ capability in managing their own digital wealth through easy-to-use and accessible advanced tools. Also, there’s no need to transfer on different chains just to execute a specific step as everything can be done inside its ecosystem.
Why NEAR and Aurora?
Sure, there are many blockchain platforms and EVMs in the market that PinkPea Finance can use, but why did it choose NEAR and Aurora?
Take a look at the two platform’s impressive features:
NEAR Protocol
- Can theoretically reach 100,000 TPS.
- Transaction fees are 1000 to 10,000 times lower than Ethereum.
- Made for creating blockchain native mobile dApps
- Certified carbon neutral, allowing PinkPea to follow ESG/SRI standards
Aurora
- Most advanced EVM in the market
- 2-second finality and gasless meta transactions
- Offers Aurora Bridge, the only fully trustless asset bridge in the Ethereum industry
PEA Token
PEA Token, which has a max supply of 50 million, is the platform’s utility token and also serves as a reward when users deposit assets into Vaults (a feature that will be discussed in detail later)
And by locking PEA tokens, users can acquire “vePEA” tokens, which would allow them to vote on important matters such as pool gauge weight.
PinkPea Features
Vaults
PinkPea Vaults are designed to help users enhance their earnings from yield farms and reinvest them in liquidity pools, resulting in compound gains. Users can leverage all these benefits while being protected from high gas fees that could eat up their earnings, thanks to NEAR’s cheap transaction fees.
Transactions such as harvesting and selling rewards, purchasing tokens, and reinvesting them are all done automatically by the Vault, giving users a seamless experience and increased efficiency.
Platform users can browse various vaults in PinkPea Finance and compare each Vault’s total value locked (TVL) and annual percentage yield (APY).
Once a user has found his ideal Vault, he can simply click it, initiate the transaction, and deposit assets to start earning.
Users can always withdraw their assets from the Vaults anytime through a withdrawal transaction request. Once the process is finished, their tokens and accumulated rewards will go straight into their account.
The platform charges 5% on profits with no minimum performance fee, while the deposit and withdrawal transactions are free.
Partner Pools
Partner Pools is an upgraded version of the Vault’s single-sided and liquidity provider pools, allowing users to gain higher return rates than regular Vaults.
Participants can leverage Partner Pools’ increased TVL and advanced solutions in issuing their tokens through an extra reward NFT.
Once participants have deposited their assets into the partner pools, they will now be eligible to receive standard APY interest and exclusive bonus rewards.
Lending
PinkPea’s Lending feature allows users to earn interest by adding their assets into pools and are also allowed to borrow a limited amount from the protocol.
Deposits
Users can choose to deposit their assets into the platform’s two types of pools: The single-asset pool and the liquidity provider pool.
Once users deposit their assets into one of these pools, they will be given a “pToken,” which will be a representation of their lending position and share of the total liquidity.
The lenders will acquire their rewards in two parts: First is through the interest paid by the borrowers and second, through the mining rewards.
Also, lenders can gain more assets with their “pToken” as the revenues from the mining and total liquidity pool grows.
Borrowing
Before users can borrow any amount, they first have to provide collateral assets into the pool fund, and these assets are the ones that will provide interest for the users.
Every collateral asset will have a mortgage rate depending on the conditions of the asset class, which includes price trends and total market cap.
Leveraged Yield Farming
Leveraged Yield Farming is a tool designed for seasoned DeFi investors which can help them increase their profits.
Through this service, platform ‘farmers’ can now borrow more assets to expand their farming positions, and while it may not guarantee bigger returns, this capability can increase their chances of attaining it.
Also, farmers are reminded that this feature, while giving them access to larger assets, also exposes them to increased risk, which can result in liquidation.
Another reminder is that farmers cannot withdraw the funds they borrowed; instead, funds will be put into the pools, and what users will receive are the pool yields and Treasury rewards. But they wouldn’t get these earnings 100% as they need to pay the interest of the assets they’ve borrowed.
PinkPea DAO
The PinkPea DAO is the governing body of the PinkPea Finance and is composed of vePEA token holders.
vePEA is the governance token of the platform’s DAO, which can be used to vote on decisions and proposals relevant to the ecosystem’s development.
The token can also be traded as an NFT, giving holders an additional option on how they can tap the benefits of the vePEA.
Reminders on vePEA Token:
- To initiate proposals on PinkPea DAO, one needs to hold at least 5000 vePEA
- Proposals on the DAO will only become valid if at least 40% of vePEA holders participate in the vote.
Conclusion
Aside from technology, user-friendliness is another major aspect that catapults a product or service into success, which, unfortunately, many DeFi platforms seem to forget. PinkPea Finance builds on top of this missing factor by creating an easy-to-use platform designed to allow crypto natives and non-natives experience the true potential of DeFi services.
