Introducing Piggy Finance
Piggy is a decentralized borrowing protocol that offers interest-free, efficiently collateralized loans backed by $BNB.
Unlike competing DeFi lenders, Piggy runs liquidations by making use of a Stability Pool mechanism instead of auctions, which allows it to make more efficient use of capital and offer loans with minimum collateral ratios as low as 110%.
Loans on Piggy are drawn in $PUSD, a dollar-pegged stablecoin. Any user (borrower or otherwise), can deposit $PUSD in the Stability Pool to become a Stability Provider and earn $PIGGY rewards while doing so. When participating in the Stability Pool, users will gradually see their $PUSD balances decrease while also seeing their $BNB (and $PIGGY) balances increase. These changes come from Stability Providers receiving pro-rata shares of $BNB when liquidations happen, along with a continuous stream of $PIGGY rewards.
$PIGGY is the secondary token of the protocol, which can be staked to receive a share of protocol fees from loan originations, and $PUSD redemptions. In due time, following the principles of progressive and orderly decentralization, $PIGGY will also be used to participate in the protocol’s governance-minimized decentralized autonomous organization and vote on matters like Upgrades, Treasury policies, and Contributor grants.
To celebrate Piggy BSC Lending Platform launch, they organise 30 BNB Giveaway. Join here now!
Piggy’s key benefits include:
🔸0% interest rate — as a borrower, there’s no need to worry about constantly accruing debt;
🔸Minimum collateral ratio of 110% – more efficient usage of deposited $BNB;
🔸Governance – minimized — all operations are algorithmic and fully automated;
- 🔸Directly redeemable — $PUSD can be redeemed at face value for the underlying collateral at any time.
You can connect your BSC wallet such as MetaMask, Binance Chain Wallet and the wallets support WalletConnect. All the features can be found in our Dashboard. The core team built the initial frontend as an example and to provide a better user experience at protocol launch. With the spirit of decentralization in mind, Piggy will invite third parties to build more frontend applications in the future.
Borrow $PUSD against $BNB by opening a PiggyBank
Secure Piggy by providing $PUSD to the Stability Pool in exchange for rewards
Stake $PIGGY to earn the fee revenue paid for borrowing or redeeming $PUSD
Redeem 1 $PUSD for 1 USD worth of $BNB when the $PUSD peg falls below $1
To borrow $PUSD, all you need is a wallet (e.g. MetaMask) and sufficient $BNB to open a PiggyBank and pay the gas fees.
To become a Stability Pool depositor or $PIGGY staker, you need to have $PUSD and/or $PIGGY. $PUSD can be borrowed by opening a PIggyBank while $PIGGY can be earned as a Stability Pool depositor. You can also use Pancakeswap or another (decentralized) exchange to buy the tokens on the open market.
There is a one-off fee whenever $PUSD is borrowed, and when $PUSD is redeemed:
For borrowers, there is a borrowing fee on loans as a percentage of the drawn amount (in $PUSD).
For redeemers, there is a redemption fee on the amount paid to users by the system (in $BNB) when exchanging $PUSD for $BNB. Note that redemption is separate from settling your loan as a borrower, which is free of charge.
Both fees are subject to the redemption volumes, i.e. they increase upon every redemption in function of the redeemed amount, and decrease over time as long as there is no redemptions take place. The intent is to throttle large redemptions with higher fees, and to throttle borrowing directly after large redemption volumes. The fee decrease over time ensure that the fee for both borrowers and redeemers will “cool down”, while redemptions volumes are low.
The fees cannot become smaller than 0.5% (except in Recovery Mode), which protects the redemption facility from being misused by arbitrageurs front-running the price feed. The borrowing fee is capped at 5%, keeping the system (somewhat) attractive for borrowers even in phases where the monetary is contracting due to redemptions.
There are two different ways to generate revenue using Piggy:
Deposit $PUSD to the Stability Pool and earn liquidation gains (in $BNB) and $PIGGY rewards.
- Stake $PIGGY and earn $PUSD and $BNB revenue from borrowing and redemption fees.
Piggy is a unique addition to the Binance Smart Chain landscape, greatly benefitting borrowers and those looking to leverage their $BNB with maximal efficiency and safety. The protocol presents many differentiators in design that allow it to provide a unique offering of zero-interest borrowing with low collateral. In order to fulfill its mission of improved borrowing experiences, the protocol mints a stablecoin, $PUSD, which can be immediately used to facilitate liquidations by being deposited in the Stability Pool. $PIGGY rewards are earned, among other things, for being a Stability Provider, and can be deposited to earn a share of protocol fees. All Piggy core mechanisms are governance-minimized, yet holders of $PIGGY can participate and vote in other governance related activities to guide the growth and development of the protocol.
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