Payship: Truly Decentralizing Pool Based Cryptocurrency Lending Economics
Cryptocurrency has created an entire financial subspace called Decentralized Finance which has taken the technology industry by storm. People are able to yield interest on their dormant crypto, gamble it, hedge it in a Non-Fungible Token, and even borrow against your portfolio using it as collateral. With the latter, decentralization is often forgotten on the technical level, with “interest rates and collateral factors on these lending platforms are decided either by algorithms with variables set by “leaders” or by governance voting dominated by “leaders.” The previous quote is from the Payship whitepaper, which plans to bring a truly decentralized cryptocurrency lending economy to the world.
Payship (PSHP) is an ERC20 Token (Contract address: 0x88D59Ba796fDf639dEd3b5E720988D59fDb71Eb8) that aims to accomplish the task of creating a crypto lending by following 6 models that breaks down the ecosystem. Payship allows you to use any ERC20 token as collateral. It allows you to stake PSHP to earn a portion of Payships income while also allowing you to vote on the future of Payship with PHSP. Payship is also unique because collateral factors and interest rates are re-calculated every day with the rates depending on the performance of the entire ERC20 ecosystem. On top of that, every rate has a 24 hour guarantee through the single recalculation once a day. In addition, after every deposit made to lend, you are given back the equivalent of that deposit in PSD, the Payship stable coin.
The first is a model that allows all ERC20 tokens to be useful. However, Payship will only recognize ERC20 tokens that are older than 90 days to prevent spamming.
The second is a model which allows all ERC20 tokens to be used as collateral through an algorithm which uses the global ERC20 market that identify the rate. This rate is determined by 3 factors, called the Stability factor, volume factor, and collateral factor. They are outlined in the white paper as follows:
Due to the design of this algorithm, no borrower would be able to receive 75% of their total value.
The third model states all ERC20 token deposits can earn interest, all ERC20 tokens can be borrowed provided there’s supply.
The 4th model states all ERC20 token deposits are insured towards lenders via the PSD stablecoin. The intial supply of PSD will be generated during a LGE, or Liquidity Generating Event which will create a large portion of collateral for the ecosystem which in turn will provide stability. The 5th model states all economic updates happen once a day at 09:00 AM UTC. This is another example of decentralization playing a key factor in the ecosystem, as no one can manipulate update times.
Lastly, the 6th model states all economic models can be adjusted internally during the beta period. Further adjustments after full launch will be performed by the PayshipDAO. Following this model ensures the ecosystem is launched appropriately and effectively before being released to the PayShipDao so it can fulfill duties on behalf of the governance layer which will be implemented in the future.
The supply of the ecosystems native token PSHP will be 11,000 tokens. Distribution and subsequent rewards are outlined in 3 phases. The first phase begins after the 11,000 PSHP are minted, they will be distributed as follows:
- 1,000 PSHP tokens are given away proportionally to the top 32 SwapShip (SWSH) holders based on an Oct 10, 2020 snapshot.
- 4,000 PSHP tokens are offered in a 5 day presale starting on Oct 12, 2020 with a starting price of 0.25 ETH per 1 PSHP.
- 2,000 PSHP tokens are reserved for DEX and/or CEX release. The first DEX launch will happen on Uniswap with a starting price of 0.4 ETH.
- 2,000 PSHP tokens are reserved for the team and locked after the presale for at least 6 months.
- 2,000 PSHP tokens are reserved for advisers, promotions and marketing.
Phase 2 is known as the Pilot, which wil last 14 days. “100% of Payship daily income denominated in PSD since the pilot launch of Payship will be distributed among wallets that connect to Payship and become active participants of lending and borrowing, proportionate to each wallet holdings’:
Wallet Deposits + Wallet Borrows / Total Deposits + Total Borrows
Phase 3 is known as the Soft Launch: Every wallet that decides to stake PSHP in the Payship staking pool will receive daily PSD proportional to its stake and daily Payship income:
Payship has also decided to experiment with a solution for reducing gas costs on the Ethereum network, which is outlined below from their whitepaper:
After outlining how Payship can present itself as a viable and trustless decentralized crypto lending and staking platform, its easy to see that its success and outlook is simply dependent on its usage. The team working on the project is in line to succeed, as Payship is one of the many parts of a larger ecosystem called RTC (Read This Contract).
With the foundations made in this ecosystem, Payship looks to rise to the top and provide the first truly decentralized lending platform with automated rate updates.
Pertinent Payship Links:
- Telegram: https://t.me/Payship
- Website: https://Payship.org
- Unicrypt (Liquidity Locked): https://unicrypt.network/uniswap-browser/pair/0x8a390F95d5AFaA9F6307bE48B84816Ba4B1D9cc7
- Twitter: https://twitter.com/payship_org
- Github/RTC Ecosystem: https://veravoss.github.io/rtc/
- Token Minting Disabled: https://etherscan.io/tx/0xd9cf589d3fb4db6482d7e5ff3e16c67691d068cccba9fca58c2b76f2dc54d886
- Uniswap Pool Info: https://info.uniswap.org/pair/0x8a390f95d5afaa9f6307be48b84816ba4b1d9cc7
(I write articles and reviews for legitimate, interesting, up and coming cryptocurrency projects. Feel free to PM me to review your project. Thank you!)
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Disclaimer: This is not financial advice. The sole purpose of this post/article is to provide and create an informative and educated discussion regarding the project in question. Invest at your own risk.