PR: Planet Finance: The Interplanetary DeFi ecosystem

Introduction

Planet Finance is a pioneering project with a cosmic perspective of the DeFi ecosystem. And just like the known universe, this interplanetary DeFi project is poised to grow and expand over time.

Planet Finance uses AQUA as its native governance token, with a maximum supply threshold of 100,000 tokens. Since all AQUA tokens in excess of the cap limit will be burnt it has an inbuilt deflationary nature. The entire ecosystem is built on the Binance Smart Chain and relies on the BEP-20 protocol.

A Smart Contract Security Audit of Planet Finance was conducted in June 2021 by Halborn, a New York-based blockchain cybersecurity company. You can read the entire audit report on the Planet Finance website.

Planet Finance: The Basics

The financial protocol is made up of different components (or planets, in this case). Each of these planets has a unique app that facilitates users to deploy their capital to generate earnings. The portal also claims that its efforts to integrate the best DeFi applications under one ‘interplanetary’ roof delivers high yields with a low-risk threshold. Since its launch, Planet Finance has released multiple planetary modules like the Blue Planet, Red Planet, and Uranus. The platform is currently working on its next module, Green Planet.

Almost all of the DeFi Projects have a roadmap depicting their future growth plans. However, unlike its peers in the domain, Planet Finance has an Interplanetary Starmap with each planet depicting a new milestone.

Planets Launched till Date

Blue Planet

The Blue Planet was launched in the early days of May 2021. The Blue Planet functions as an aggregator for stablecoins in the Planet Finance DeFi ecosystem. An aggregator compounds interest earnings from other platforms and uses it to reinvest in liquidity pool tokens of the respective platforms. Blue Planet deploys a smart auto-compounding strategy for generating the highest yields while incurring the lowest fees cost. The pay-out takes place every 3 seconds.

Red Planet

Red Planet also functions as an aggregator, albeit with a broader scope. Red Planet is super-optimized to pull out the best yields from cryptocurrencies in the DeFi space. Red Planet was launched in mid-May.

At the time of writing (29 August 2021), the total value locked in Planet Finance was in excess of USD 42 million with roughly 58,500 tokens in circulation. Here’s a comprehensive snapshot.

Both the Red Planet and Blue Planet modules support seamless swap trades. Users can also stake their tokens on any one of these planets. Fees generated from swap trades are shared with stakers of AQUA tokens and the liquidity providers.

Uranus

Uranus was launched in Mid-July 2021; a month after Planet Finance integrated the swap functionality. You may consider this module as a kind of buffer that collects any spillovers from Red Planet. Uranus is designed to spot single vaults and liquidity pools with high yields but is not featured among the Red Planet’s top-quality coins.

The Planet Finance Ecosystem classifies this module separate from Red Planet intentionally. This is because the buffer module is focused on ‘Shitcoins’ and the associated risks are relatively high. 

Upcoming Planets

Green Planet

Green Planet is an upcoming module powered by GAMMA. It is a decentralized dynamic protocol that will facilitate lending and borrowing functions. Green Planet will generate fee earnings by way of the net interest margin between suppliers of liquidity and borrower of funds. AQUA Token stakers will also receive a share from these earnings. Green Planet will feature a new Utility Token which will contribute to cutting down fees across all the other planets.

Pink Planet

The Pink Planet section of this ecosystem revolves around digital collectables and NFT artworks. This module will act as a marketplace where artwork creators can display their works to collectors. This platform will support both primary sales as well as secondary sales. Artists can mint NFTs using AQUA Tokens. Additionally, artists will have the ability to embed a royalty feature on their artworks and earn from trades carried out in secondary markets.

Wormhole

The Wormhole module is a planned initiative to bridge Planet Finance with other blockchain networks. After its launch, users with holdings in other networks will also have access to Planet Finance’s ecosystem.

Purple Planet

Presently, Purple Planet seems to be the final destination in the interplanetary ecosystem; at least according to Planet Finance’s starmap. Purple Planet module will work as a free market insurance portal. Users can cover potential risks arising from smart contract hacks. Obviously, this platform will protect users against attacks on DeFi projects that are vetted by the Planet Finance team.

Planet Finance Fees

Planet Finance charges Deposit Fee and a Profit Fee. Both these fee rates are factored in the Annual Percentage Yield (APY) statistics displayed on their website.

Deposit Fee

Presently, Planet Finance accepts deposits in cryptocurrencies and does not support debit/credits or PayPal. It charges a one-time deposit fee of 0.10%. This fee is applicable for all pools/vaults excluding AQUA and AQUA-BNB.

Profit Fee

The Profit Fee has dual implications. Not only is it designed to generate earnings for the platform and participants but also acts as a deflationary factor to maintain the value of the AQUA token.

The Profit Fee is fixed at 2.50%. This can be further split into three main functions; an Auto-compound fee, Buy-back & Burn Fee and Platform Fee.

The Auto-compound fee is earmarked for meeting the dynamic gas costs of the Binance Smart Chain. This accounts for 20% of the total profit fee (or 0.5% of the transaction value).

The Burn Fee is fixed at 40% of the profit fee (i.e., 1% of transaction value). All costs associated with buying and burning AQUA tokens are covered in this category.

The 40% Platform Fee accounts for the balance (i.e. 1% of transaction value) is used for expenses incurred to develop and enhance the platform. Eventually, this amount will be distributed among AQUA token holders.

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