Coral Farm Finance aims to be the most eco-friendly yield farm on the Binance Smart Chain. This protocol combines yield farming with real-world sustainability in a fun and decentralized manner.
One of decentralized finances’ (DeFI) most popular features is the use of liquidity incentives. This system is referred to as yield farming. The most prominent De-Fi protocols utilize it to bootstrap users. Coral Farm has adopted features from the most prominent decentralized exchanges (DEX) such as PancakeSwap, SushiSwap, and Goose. These protocols leverage automated market-making (AMM) technology to facilitate token swaps. Coral further innovates on these ideas through integrating a buyback and burn alongside their goal of “making a real impact on the world.”
Seamless and Decentralized Token Swaps
Environmental Sustainability Charity Fund
Deflationary Token Mechanism
The team at Coral Farm aims to add value to the traditional AMM model system. The chief mission of Coral is to fund nonprofit environmental charities through their DEX ecosystem.
The heart of Coral Farm is its unique tokenomics model. The team has created a sustainable token by incorporating a model with a perpetual deflationary mechanism. The protocol collects a 2 – 3.9% deposit fee to purchase coral periodically. This CORAL is then burned to reduce the supply of CORAL. Most of the deposit fee is used to purchase CORAL, but the team provides the following breakdown:
Most of the fees will be used to purchase Coral and burn them.
5% of the fees will be sent to a specific NGO wallet and funds will be regularly used to fund the action of non-profit environmental NGOs
The team has also introduced a diminishing block reward. This system reduces the CRL block reward of at least 20% every two weeks up to a maximum of 830 000CRL (Sept 2022). The following distribution is used to reward early adopters while also curbing the significant inflation p the protocol first experienced. The diminishing block reward can be viewed here, giving a specific breakdown.
Of these block rewards, ~9.09% will be sent to the developer’s address. The part will be used in burn operation to reduce supply while the other part will be redistributed to NGO’, or used for partnerships.
Coral Finance Launch Update and Roadmap
The team has had a successful launch with more than 1.5M in volume with a TVL of 4M. The team had a fair launch with no pre-sale and seed round. Initially, the team provided 100 BNB of liquidity, but the team has burned these tokens since then. Their deflationary token measure has already performed $80k in buybacks and burns. The protocol has also generated a balance of $11,000 for the charity fund.
Currently, the team is working with multiple Non-Governmental Organizations (NGO) involved in Coral reef protection. This has proven to be challenging as numerous small NGOs do not readily accept crypto. This is in contrast to large NGOs such as Unicef, Sea Shepard, etc… that already accept crypto. Hopefully, smaller NGOs will follow suit allowing Coral Farm to find a suitable charity. In the meantime, they have decided to donate $1500 to the Ocean Defenders Alliance. The team is still looking for a suitable NGO and offers a $100 BUSD bounty to anyone who helps. This partnership must be with a charity that supports coral reef protection.
The team does not plan to stop their innovation there. The introduction of the first profit-sharing DEX that offset part of the ecological cost, with a portion of fees collected that is used for NGO donations, and Coral Vaults alongside NFT gamification are soon to come. The Coral Vaults will bring yield optimization to the coral platform. This introduction of vaults furthers the Coral Farm ecosystem as a one-stop-shop for DeFi yield farming.
Another development of the Coral Farm ecosystem is the adoption of non-fungible tokens (NFTs). These NFTs will be designed as cards by “world-class” artists to serve an integral role in the ecosystem. Users who own Coral NFTs will be whitelisted to special vaults and can adopt individual coral reefs.
The team at Coral Farm Finance has displayed a plethora of innovations in the DeFi space. The protocol leverages traditional AMM’s and adds further deflationary mechanisms alongside a real-world purpose. Coral Farm has been live for just about a week, and they have a lot of developments on the way. It will be crucial for the protocol to execute on its roadmap and introduce further innovation.
Source : bsc.news
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