LP Finance is a decentralized synthetic asset protocol on Solana. It is dedicated to enhancing stablecoin’s capital efficiency and using Typeless Repayment to stabilize the value by providing arbitrage opportunities. The protocol allows users to earn interest on provided tokens and borrow interest-free stablecoins pegged to US dollars and SOL.
LPFi is the native token of LP Finance. It can be used in governance NFT, collateralised borrowing and staking.
Why is LP Finance using Penguin’s bonding/staking service?
Since LP Finance is expecting its IDO soon, it is vital to start this with a healthy token emission strategy.
Bonding as a value accrual strategy can help LP Finance to accumulate key infrastructural POL while benefiting long-term investors. Additionally, bonding and staking as a combination help LPFi maintain a healthy inflation rate.
To make it happen, LP Finance will initiate an LPFi/PAI liquidity pool with Penguin Finance for investors to add liquidity for LP tokens, then with the bond sale to offer discounted LPFi in exchange for LP tokens and encourage investors to HODL LPFi by offering staking rewards.
This provides investors with an optimal opportunity to support LP Finance while profiting from bonding/staking.
As a result of the partnership, they will add more Lego types to the DeFi ecosystem together, as well as new and probably better options for improving liquidity in various scenarios.
About LP Finance
LP Finance is a decentralized synthetic asset protocol on Solana. LP Finance solves Capital Inefficiency problems on stablecoin and introduces Typeless Repayment to stabilize the value by providing arbitrage opportunities.
About Penguin Finance
Penguin is a Liquidity-as-a-Service Platform that offers a one-stop solution for treasury management such as swap, bonding, and staking. A protocol can utilize the bonding service to acquire liquidity instead of renting it. Protocol-owned liquidity can help a protocol survive in the long run by staying with it during a downturn. Instead of fostering short-term involvement, token vesting will allow protocols to match their incentives and communities with their long-term goals.