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UPFI Pro
A liquidity mining service to acquire their own liquidity.
UPFI Pro solves liquidity problems, LP. We offer it instead as a service bond, at a small discount.
For traditional methods, users will use LP to farm to receive rewards, But UPFI Pro will help users exchange LP for tokens with a stable discount, the liquidity is effectively locked within its treasury, this process we call bonding.
1. Liquidity Problems
Currently, when a protocol is conceived, developers usually dedicate a large percentage of tokens as an incentive to liquidity providers. This will have negative and unsustainable effects in the long run for the project.
Selling Pressure:
The project will create farms, in order to attract investors, providing liquidity with attractive rewards, they often sell rewards to recover investments as well as increase profits, which places selling pressure on the token market. Current solutions, such as condition of claim reward every 6 hours or 12 hours, increase lock time etc., But do not solve the core problem but only prolong more time.
Protocol and LP
Projects will use attractive incentives to attract liquidity, however over time the number of rewards will decrease, the price of the token will decrease as early investors sell their rewards resulting in share value the bonus is also reduced. LPs will remove their capital and move on to the next opportunity.
“ 42% of the yield farmers that enter a farm on the day it launches exit within 24 hours. Around 16% leave within 48 hours, and by the third day 70% of these users would have withdrawn from the contract. ”
Impermanent loss
A bull market causes an increase in the price of its native token, resulting in a significant impermanent loss for liquidity providers.
Liquidity loyalty
During times of market turmoil, users tend to remove their liquidity from the project. However, at these times, the protocol needs the most liquidity.
2. Our Solution
Collect liquidity through Bonds
Users will use LPs to buy bonds (tokens) at an attractive discount that will mature after a fixed time. As such, protocols can accumulate LPs, increasing their own liquidity. As more liquidity is accumulated, the pool is able to support larger transactions and ensure price stability and protection from large liquidity exits. This in turn creates a healthy price action that attracts long-term holders.
UPFI pro partners gain additional token visibility to users as their bonds will be featured on UPFI pro, a consolidated marketplace for bonds.
Benefits for the community
Holders do not need to speculate too much on the price of the token. Bonds pass, they can give LPs to the protocol and get back the original tokens at a high discount. This is a win-win scenario for both the token holders and the protocol.
Impermanent loss. Users don't hold LPs for too long, so they won't suffer impermanent losses due to the market prices. Shifting this loss to the protocol better aligns both LPs and the protocol.
The community can rest assured that the liquidity will stay permanently in the protocol, there will always be a large amount of liquidity to trade when the price fluctuates sharply.
3. What is Bonding?
Bonding is a mechanism in which a user can sell assets (LP) to a protocol in exchange for its native token.
Bonding allows projects to gain liquidity and reserve assets, by selling native tokens at a discount in exchange for LPs. Once the bond is issued, it also has a vesting period to prevent users from selling all the discounted tokens at once for a quick profit.
For bonders
Users benefit from buying native tokens at a high discount and stable price. They just use LPs to buy them.
UPFI pro
The protocol sets aside a target amount of tokens. Bonds are linearly vested over a period of time (5 days by default) to reduce sell pressure due to arbitrages.
4. WHO ARE WE?
We provide liquidity mining services, bonding, and staking. Projects that will provide native tokens want to sell them to UPFI pro. We will then incentivize users to buy bonds, which will increase liquidity for projects and keep prices stable in the long run. Projects no longer need to pay out high incentives to rent liquidity, while also guaranteeing the permanence of liquidity to facilitate transactions..
Our Strengths :
- Projects working with UPFI Pro will be able to attract bigger value- add investors who want to invest with larger size.
- Our marketing team will work side by side with our partners to promote our service and expand our communities.
- Projects through their UPFI Pro partnership gain extra exposure as their bonds will be featured on UPFI Pro, a unified marketplace for bonds.
- Projects gain access to experienced policy and engineering teams who provide market expertise and ensure success from deployment to maintenance.
- We not only provide the services mentioned above, but also welcome other collaboration possibilities.
Last modified 1mo ago