The company boasts of having the first Consensys-audited projects on Binance Smart Chain (BSC) among other achievements.
Growth DeFi is a multi-chain Decentralized Finance (DeFi) ecosystem that is focused on capital efficiency and maximizing returns for investors through a variety of products. The goal of the project is to utilize stakeholders’ value to maintain the best, highest & most sustainable yields in the crypto market. The main product Growth DeFi currently offers is their WHEAT yield farming platform, recently launched on Binance Smart Chain (BSC).
WHEAT was the first BSC project to be audited by Consensys, one of the most respected blockchain technology solution platforms, whose other notable audits include DeFi heavyweights Uniswap & AAVE.
This is a massive achievement for WHEAT as such a small Market Cap project. Yet this is not the only big recent news coming from the company. Growth DeFi is gearing up for their upcoming stablecoin launch MOR (with release slated for late July/early August), which will act as an over-collateralized stablecoin (inspired by Maker DAO’s DAI) following the USD as closely as possible. Users will be able to post tokens as collateral to borrow MOR, with the innovative addition of being able to use staked LPs and yield-earning tokens via the WHEAT platform as collateral options.
This will let first-time users earn yield while borrowing money. MOR will allow users to borrow using WHEAT backed LP tokens (as well as other tokens) and have the ability to leverage high yield farming positions. MOR looks to bring a massive bundle of added value and usage to the Growth DeFi ecosystem. Governed by a GRO DAO & with plans to go multi-chain, MOR appears set to be the next evolution in yield optimization for farmers & borrowers alike.
The Growth DeFi platform, based on their novel tokenomics, looks to be the first truly sustainable yield farming ecosystem. To understand why, read on!
There are three tokens that exist within the GrowthDeFi ecosystem: GRO, WHEAT, and gROOT.
The first token is GRO. The GRO token is a deflationary governance token within the GrowthDeFi ecosystem. GRO can be staked for yield rewards in GRO or BNB (on Ethereum & BSC respectively).
WHEAT is another essential token to the GrowthDeFi ecosystem. WHEAT is used as an incentive for using the products on the GrowthDeFi protocol. To help make WHEAT deflationary, a large part of the portion of the revenues are dedicated to buybacks and burns.
gROOT is the token one would use to invest in GrowthDeFi products such as strategy tokens, PMTs and more! It is backed by a treasury that invests in yield-earning assets, and the profits are distributed to holders through gROOT Harvest as BNB & through directly buying back the gROOT token.
WHEAT is an integral part of the GrowthDeFi protocol. Some basic information on the WHEAT token:
Contract Address (BSC) <0x3ab63309F85df5D4c3351ff8EACb87980E05Da4E>
Initial Supply: 10,000 WHEAT matched with 200 BNB for liquidity purposes
Emission rate: 0.1 WHEAT per block
Emission Distribution: 100% of WHEAT will go towards rewarding farmers
The goal of WHEAT is to incentivize users and investors to utilize the products offered by GrowthDeFi. This also includes depositing LP tokens to create balances on the Fee Collector contracts that constantly buyback and burn WHEAT. In the long term, WHEAT looks to be completely deflationary, while offering a powerful use case for investors.
WHEAT also offers a unique way to stay relevant and separate itself from the other DeFi tokens in the stratosphere. WHEAT looks to create a more sustainable revenue model for their WHEAT token by moving away from a typical buyback revenue model and instead to a revenue model that relies on deposit and performance fees.
As shown in the image above, WHEATs revenue is shown coming to Fee Collector Contracts by way of deposit fees and performance fees. The goal is to create a model where TVL stays within the protocol and a means of revenue that is consistent and not fluxated based upon the value of the token.
The fees in the Fee Collector Contracts are then used to harvest CAKE regularly. This is then used to buyback WHEAT and GRO. Why this model is so interesting is because the buyback of WHEAT is no longer dependent on the price of WHEAT but instead the profits collected by the Fee Collector Contracts.
This model creates a much more sustainable method for maintaining TVL, as the price volatility of the token does not as much affect the protocol’s locked value. This model is more “business” focused, with an emphasis on legitimate profits which in turn helps the protocol weather high volatility markets.
WHEAT’s strategy relies quite heavily on harvesting CAKE and compounding it into more CAKE LP tokens. This, the GrowthDeFi team hopes, will maximize returns in the long run. For PancakeSwap vaults, the fee set up is as follows:
Deposit Fee (0.1%)
Withdrawal Fee (0%)
Performance Fee (50%)
Fee Collector Contracts
The Fee Collector Contracts are another hugely important part of the GrowthDeFi ecosystem. The contracts collect the performance and deposit fees, and then stake them in PancakeSwap Masterchef contracts to generate returns. The profits of those returns are then sent to the main WHEAT buyback contract.
An outline of how this works is as follows:
1-The Fee Collector contract receives the deposit and performance fees from the CAKE/BNB strategy contract. These fees are received in the form of CAKE/BNB LP tokens & converted to CAKE.
2-The Fee Collector contract then stakes the CAKE tokens in the PancakeSwap MasterChef contract which then farms CAKE.
3-It harvests the CAKE profits and sends them to the WHEAT Buyback Contract.
Source : bsc.news
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