PROPHET FINANCE – Fluid Yield Generation and Dynamic Reward DeFi Platform

Project Reviews / 28.11.2020

Yield farming is one of the famous forms of earning in the DeFi Space and also the common form of rug pulls that have been occurring. In addition to this, most yield farming projects don’t have flexible and smooth earning systems in place. They are either rigid or favor early investors who hold large amounts of the token. It is based on the failings of existing farming concepts that PROPHET FINANCE has been developed.

The concept behind PROPHET FINANCE in Yield Farming

Developers worldwide build on the substrate of other projects to refine it to increase productivity or ease of use. PROPHET finance was developed based on Reflect Finance, but as a fair launch to reward stakers with flexible rewards.

Investors on PROPHET finance can grow their yields by simply holding their $PROPHET tokens in their own wallets. An automatic algorithm has been integrated into the protocol to charge a 2% fee of all transactions and distribute it to holders. Unlike its parent protocol, this reward is flexible based on the community votes in the future. This reward is directly proportional to the number of tokens one is holding. Liquidity providers cannot earn from this fee, making it fair for the average token holder.

How Unique is PROPHET Finance?

Softforks or Hardfork are initiated to improve upon the features of an existing blockchain solution. Below are some of the unique features that users on PROPHET’s platform stand to gain.

Adjustment of Transaction Fees

We know from above that the parent protocol redistributes 2% of fees charged from all transactions and distributes it to holders. However, if we consider this system on a long-term basis, it will not be fair to new investors. Presale or early investors are likely to hold larger portions of the tokens and will get the lion’s share of rewards distributed always.

To avoid this, the community has the ability to increase this from 2-10% through proposals. Any of this proposal shall be voted upon to decide the rate of redistributed transaction fees.

Provision of Constant and Transparent Liquidity

There are countless occasions where developers abscond with provided liquidity once there are enough profits. This method has stifled the growth and expansion of DeFi protocols. This project’s team has thought it wise to prove to the community their long-standing support for what they have developed. In doing so, 75% of 20ETH provided as liquidity was locked and 25% for a week. In this manner, the team can gradually withdraw their provided liquidity without raising any rug pull fears.

Fairer Distribution System

Seed sale and presale investors in most blockchain startups accumulate a huge portion of tokens’ total supply. This method has been one common way tokens tend to dump upon listing on any exchange over the years. Hence, the team hosted a 100% direct-to-listing while capping the amount users can buy and sell at each point in time. Users were limited to a maximum of 9500 PROPH tokens to buy and sell.

How PROPHET provides a hedge against Token Volatility

The total supply of PROPHET Tokens is 1 million, and in addition to this, it has a 1% burn of every transaction made. This will constantly reduce the number of the token in circulation, thereby increasing the token demand. Once demand is on the rise, the value of the token is likely going to increase.  This deflationary mechanism incentivizes users to hold their tokens while earning from the distribution of 2% of transactions made on the protocol.

Furthermore, 2.5% of the total supply has been airdropped to liquidity providers on exchanges. This balances the system as these users are blacklisted from receiving the 1% distribution sent to token holders.

PROPHET Tokenomics

  • Total supply: 1,000,000 PROPHET
  • Starting tax rate per transaction (automatically distributed to holders): 2%
  • Burn rate per transaction: 1%
  • Maximum buy limit per tx: 9,500 PROPHET (1% of supply — to be increased later on)
  • Starting liquidity: 20 ETH / 900,000 PROPHET (75% locked for 1 year, 25% locked for 1 week)
  • Marketing and Community Rewards: 5% (50,000 PROPHET)
  • Liquidity Rewards Fund: 2.5% (25,000 PROPHET)
  • Development Fund: 2.5% (25,000 PROPHET — Timelocked for 2 weeks)

Conclusion – PROPHET FINANCE Review

Prophet Finance’s version of Yield Farming provides investors of any category a fair chance to earn from the platform. They have put in place a flexible yield farming system that is governed by the community. The team wallets are also blacklisted from receiving rewards as transparency in this project’s development.

Disclosure: This is a sponsored post. Readers are encouraged to conduct further research before taking any action. Crypto Adventure does not endorse any crypto projects cryptocurrencies listed, mentioned, or linked to on our site.

Holds a degree in BSc. Nursing from the University of Cape Coast, Ghana yet an addict to the blockchain technology and the cryptosphere. He combines the promotion of crypto projects and also the making of professional contents all to get innovative projects to the real world. He is a passionate Community manager and a Marketing Advisor for blockchain startups.