PERA Finance AMA Recap
PERA Finance is a multi-layered and sustainable trading & yield farming protocol integrated with a fully-decentralized daily trading competition.
Today we have Eren Yecan as Co-Founder of PERA Finance joining us to answer our questions for the next hour.
Eren Yecan, PERA Finance Co-Founder
Me and my co-founder partner Utku are former academics specializing in structural engineering and neuroscience, respectively. With the advent of DeFi in 2020, we finally understood what cryptocurrencies could be used for and started to work with Yasin, our head developer, who has been contributing to the blockchain space for a long time both as an educator and developer to create Pera Finance.
Question from the CryptoRank team
#1. Can you tell us about PERA Finance? What problems do you solve, both in the space and for the community?
Eren: – We plan to bring decentralized and fully on-chain trading competitions to the DeFi space for the first time.
We think that DeFi can only compete with CeFi if there are no infrastructural gaps for the users. We aim to bridge one of the most important gaps between the CeFi and DeFi: Trader incentives. CEXes have many different tools to boost trading volume and the trading competitions are the most used and proven method to achieve a long-term user base.
As Pera Finance, our main idea is to provide a new DeFi infrastructure that also rewards DeFi users for their daily volumes and decentralized trading competitions are the first example of this approach. We plan to establish new yield farming structures around trading volume creation incentives, what we call trade farming.
So, Pera Finance aims to bring volume based applications for the whole DeFi ecosystem for a better user experience and robust space
#2. Could you shortly describe the milestones PERA Finance has achieved, and tell us about your upcoming plans?
Eren: – We have a product first approach. That’s why our PERA smart contract is fully developed before the launch, including the daily trading competition which is the main novelty we bring to the DeFi space. So, starting from the Pancakeswap launch day, our yield farming mechanism around the trading competition is available to everyone.
Our trading competition module, which can be implemented to the other token smart contracts is ready to function for the new projects as well. So, if a new coming project wants their own trading competition in-built to the smart contract, we can deliver it right now.
The next goal in our roadmap is to offer trading competitions as an external add-on to the DEXes and DeFi tokens that are already traded in the market. We are currently in the development process of this. When this part is finished our trading solutions will offer decentralized trading competitions as an external service to the projects that is interested to have this service. We are planning to complete this aspect in Q-3 or Q-4.
We are also currently working on porting PERA and our trading competition infrastructure to other blockchains. Again, this year, we aim to use both the PERA token and the trading services we offer in other blockchains.
Questions from Twitter
#1. Has the PERA token smart contract been audited for security risks and contract base issues? Where do you get smart contract security support and how much do you care about it?
Eren: – That’s a really good question!
We have a security first approach. That’s why as soon as we had finished our smart contract, we started looking for a respectable audit firm. Since most of our our smart contract features are unique, they had to be tested thoroughly. Given their experience in the field, we signed with Halborn. Halborn did security audits for established names like Coinbase, BlockFi, Bancor , AVAX, Sushiswap and Polygon. They did our smart contract audit and frontend penetration tests but that’s not all. Halborn is our long-term security advisor & partner and they guide us through all security related stuff.
You can check the audit report here: https://pera.finance/info/PeraSmartContractAuditReport.pdf
You can also check our official medium article about a bug on almost all of the frictionless yield contracts that we explored extensively in order to see our general approach to the safety.
#2. Yield farming has come to stay in the DEFI space, please tell us how Pera Finance compares to many yield farms offering high APY on liquidity staking, and why would crypto investors pick it over other yield farming opportunities?
Eren: – I think we have a different approach to the yield farming in general. As Pera Finance, we have incorporated transaction fee and emission-based reward methods for our native PERA token to complement each other in a logical way which we call as hybrid farming.
PERA trading competition is the main feature to sustain this approach. We have a daily trading competition for the PERA users to earn both emission rewards and a certain portion of the transaction fees that ensures a long-term yield for everyone.
In addition, partner tokens coming from our trading competition solutions for other projects will also be shared with the PERA Stakers to provide a multi-token yield for our users to boost their returns.
The PERA token has been rigorously tested by creating financial models that have been created by using the market data of 11 different DeFi projects. Various DeFi projects have been chosen for our financial model based on metrics like market cap, daily volume etc. in order to use a wide range of data sources or market cases.
As a result, estimated PERA annual returns (APYs) were found to be between 107% and 510% (even if the daily trading volume is considered as an average of 1.5- 2 Millions USD at most for our market models, which is quite conservative considering current trading volumes for most of the projects).
You can read a more detailed explanation for the financial aspect and the APY estimations from our business deck as well:
#3. Almost 80% investors have just focused on price of token in short term instead of understanding the real value of the project. Can you tell us on motivations and benefits for investors to hold your token in long term?
Eren: – That’s also a good question!
Our token is designed as a utility token at its heart. Just trading PERA tokens makes you eligible to join our daily trading competition. If you’d like to be a liquidity provider, you can stake your PERA tokens and enjoy LP yields. Or you can simply hold your tokens and enjoy gasless yields! As you can see, we tried to include every DeFi user type that interacts with a DeFi protocol/token.
In general, here’s how it works:
PERA Token generates yield farming rewards in 2 ways: 1) A 2% fee is charged for each on-chain PERA transaction 2) 70,000 PERA is minted daily. All rewards are distributed to PERA traders, liquidity providers and holders.
PERA Token runs fully-decentralized trading competitions every day, rewarding the volume creators of PERA Token.
PERA smart contract features LP token staking, which rewards liquidity providers for supplying liquidity to PancakeSwap PERA-BNB pool. We will open up multiple farming pools with the partner projects as well for different farming alternatives as well.
PERA Token has gasless yields for holders. PERA Token holders earn yield from every PERA transaction just by holding PERA.
We will create multi-asset income for PERA users through the partnerships with other DeFi platforms thanks to our trading competition infrastructure.
As you see, PERA is designed much different than the non-utility governance tokens. Its main utility is to become a multi-yield generator for the PERA users via multiple and different options around PERA token.
Questions from Telegram
#1. How does the PERA smart contract work with Oracle and why are you using Oracle? How does Oracle support volume data for financial structures?
Eren: – We have an in built oracle into our token contract that tracks the user tx’s on the blockchain and feeds to our sorting algorithm inside the contract, we need volume data to find the top traders
#2. I’ve seen a lot of defi projects pop up recently, and die from a lack of liquidity and confidence in the dev. question how do you convince investors because of this problem?
Eren: – We are rewarding the demand from the traders for the first time via trading competitions, our PERA trading competition is everyday and it rewards the trading volume which is the main selling point to attract LPs for them to farm sustainable yields and collect exchange fees in return
#3. What are the benefits of holding your token as long term investment? Can you tell us about the motivation and benefits for investors to keep the your token in the long run?
Eren: – PERA token is the main income generator of the Pera Finance, all our services are designed to add value for the PERA token, even the ones we provide to the other projects as a service for the customized trading competitions for their platforms