Parrot Incentive Program
Liquidity Network for Lending & Borrowing, Parrot released Incentive Program with 50,000,000 PRT.
To bolster the protocol, an important next step is to incentivize protocol contributors with $PRT, Parrot’s governance token.
There are two major areas to incentivize in the first stage of the Parrot Incentive Program:
- Grow the supply of $PAI. Let’s make it yuge.
- Healthy level of $PAI trading liquidity on stable swaps. Let’s make the peg stronk.
Growing the supply and liquidity of PAI in tandem paves the way for PAI’s adoption in DeFi. Sufficient supply makes it worthwhile for other protocols to integrate with PAI, and having liquidity gives everyone the confidence that PAI can maintain its value stability.
(There are also incentives available for pBTC, Parrot’s synthetic BTC. A follow-up article will dive into the plan for Parrot synthetics.)
PRT Tokenomics
They have made minor changes to Parrot’s tokenomics. Here’s the final version:
Symbol: PRT
Total Supply: 21,000,000,000
- Protocol incentives: 35%
- Team & Angels: 17.5% (1–3 year lockup)
- Ecosystem & Partnerships: 20%
- Seed: 17.5% (1–3 year lockup)
- Protocol Controlled Reserve: 10%
The Protocol Controlled Reserve (PCR) will be directed by the DAO to carry out market interventions in favour of the protocol. For example, the DAO may direct a portion of the PCR to act as an insurance fund to backstop any bad debt in the lending system.
Parrot Protocol will collect fees from the services it provides, use the fees to buy back PRT on the open market, and cycle back the PRT as protocol incentives. The main sources of protocol fees are:
- Stability fees collected on $PAI
- Borrow interest on the $PAI supply
- Liquidation penalties
- Borrow fees collected on the lending market
- Trading fees for the vAMM (note that the vAMM does not require LPs, so it’s possible for the protocol to capture all trading fees)
The PRT token is not live yet since we have not yet conducted our IDO. The rewards will be distributed to the community after token launch.
Parrot Hatchling Incentives
This rewards program is designed to grow the supply of $PAI, while making sure that there is a healthy basket of assets backing the value of $PAI.
Over the next 30 days:
- 15M $PRT will be rewarded to users that staked SOL to mint $PAI.
- 850K $PRT will be rewarded to users that staked USDC to mint $PAI.
- 350K $PRT will be rewarded to users that staked USDC to mint $pBTC.
[[[Update 07/17/2021
- 350K $PRT will be rewarded to users that staked USDT to mint $PAI.
]]]
Snapshots of all the vaults are taken hourly, and your $PRT rewards will be proportionate to the amount of $PAI you’ve minted.
50% of the rewards you’ve accumulated will be unlocked soon after token launch. The other 50% will be unlocked weekly over a 3-month period.
Top 10 Leaderboard Rewards
A further 1M $PRT will be distributed to champion parrots.
Over the next 30 days:
- 500K will be distributed to the top collateral providers. Note: If you deposit a non-stable asset such as $SOL, you can’t mint as much $PAI due to the higher collateral ratio requirement. However, you’ll still be able to compete for this reward even if you can’t mint as much $PAI as the stable vault users.
- 500K will be distributed to the top $PAI minters who use any of the vaults.
There will be an official leaderboard where you can check your ranking.
What is Parrot?
Parrot is Liquidity Network for Lending & Borrowing.
📰 INFO:
