Pinecone Finance seeks to help users diversify their yield farming investments in order to maximize their returns while minimizing risk.

About Pinecone Finance

Yield Farming is a popular Decentralized Finance (DeFi) concept that allows users to stake their crypto assets to earn passive income. 

Despite its unique role, yield farmers suffer from a myriad of issues, such as the lack of sustainability, poor user experience, and most importantly, security risks – especially flash loan attacks.

To effectively solve these challenges and make yield farming more rewarding, sustainable and effortless, Pinecone Finance positions itself as a next-gen yield optimizer protocol based on Binance Smart Chain (BSC) focusing on single asset farming. 

By providing users with multiple farming strategies including unique dual-layer compounding strategy, as well as anti flash loan attack mechanisms, Pinecone Finance aims to provide DeFi users with higher returns while minimizing risks. 

Other than PCT rewards, PCT holders can also enjoy sustainable income in BNB coming from the performance fee charged from Pinecone vaults. 

Tokenomics

The total supply of PCT is 1 billion, including around 1.3 million for presale (worth 3,000 BNB). The remaining part will be released in a linear way gradually over time.

When vault users claim their profit, a 30% performance fee will be charged and distributed to PCT holders in BNB, alongside the PCT rewards they will get. 

At the same time for every 1 BNB earned through the performance fee, 4,000 PCT are minted and distributed in the following ways:    

80% will be distributed to the vault users (farmers) of the protocol.

10% vesting to seed investors over the entire lifecycle (linear release proportionally with minting of all tokens)

10% vesting to team and advisors over the entire lifecycle (linear release proportionally with minting of all tokens)

The design of such tokenomics means that the interest of the team, early investors, PCT holders and PCT protocol users (farmers) are pretty much aligned. The higher the Total Value Locked (TVL), the higher the profit, which generates more BNB income for holders and a corresponding high token price, forming a virtuous cycle to drive the long term growth of the ecosystem of Pinecone Finance which benefits every participant. 

Multiple Strategy Vaults

Higher return always comes with higher risk which still holds true in yield farming, so there is no single strategy satisfying the needs of all investors. That’s why Pinecone Finance designed a unique multiple farming strategy offering with different risk and return profiles. For each crypto asset it aims to provide various farming strategies for investors to choose from. Take CAKE as an example:  currently there are two Cake Vaults on Pinecone, i.e., the CAKE vault using PancakeSwap-Biswap strategy and the CAKE vault using the PancakeSwap strategy. 

CAKE（Pancakeswap-Biswap) vault

​​The CAKE yield from PancakeSwap-Biswap vault is generated through converting the CAKE profit from the PancakeSwap CAKE pool into BSW and depositing it into the BSW pool on Biswap. The final APY depends on the CAKE APR offered at Pancakeswap and the BSW APR at Biswap, as well as the live conversion rate between these two tokens. Such a strategy comes with a certain hedging mechanism: when the CAKE- BSW price appreciates, users can enjoy an increase in principal, and if CAKE price against BSW price falls, profit will increase significantly to hedge against some of the losses caused by the decline in token price.

Hence the real return may fluctuate from time to time even though it offers relatively high APY.

CAKE (Pancakeswap) Vault

The yield of the CAKE (PancakeSwap) vault is generated by depositing CAKE into PancakeSwap CAKE pool and continuously reinvesting the CAKE profit, so it will continue to generate exponential returns. The frequency of auto compounding could be up to 48 times a day depending on the TVL. Given there is no conversion between two tokens, the real return is stable despite the lower APR it might provide. 

Source : bsc.news