Decentralized Finance, DeFi in short – the blockchain-driven revolution in the fintech space continues to grab the headlines. As platforms offering decentralized loans, insurance and other financial products continue to grow, the applications of such technology in other industry verticals are an exciting proposition. Making good of this opportunity is PandaCash, a Binance Smart Chain-based no-loss lottery system that makes use of RFI token mechanics to encouraging hodling of its native $PANDA token by the community. In return, it offers exciting returns and rewards which is much higher than conventional DeFi instruments.
No-loss lottery is not a new thing, as the concept has been around in traditional finance for quite some time now. Also known as Prize-linked Savings Account in banking jargon, these accounts divert a percentage of interest otherwise payable on deposits to a prize pool that funds the lottery payout to select winners. PandaCash implements a similar concept, but in a more rewarding fashion as the opportunity to win the lottery is in addition to static rewards generated based on the transactions volumes and is generally much higher than yields through conventional DeFi farming or staking process.
How does PandaCash work?
PandaCash is a DeFi project with no-loss lottery mechanism which executes instant distribution of revenues to $PANDA holders as and when generated. Created by a team of developers and crypto enthusiasts, PandaCash enables token holders to earn rewards by doing nothing. Yes, that’s correct. All they have to do is hold at least $20 worth of $PANDA and they will continue earning a share in the transaction fees collected throughout the network. The periodic lottery is an added bonus where one lucky member of the community stands to win the grand prize — Tesla Model X automobile.
The incentive mechanism on PandaCash is supported by its network fee structure. The project has set in place a 10% redistribution fee on liquidity within the network, which will be utilized to issue rewards, maintain liquidity and fund the lottery pool. The lottery wallet collects 2% of all redistribution fees charged by the network and once the pool hits the $100,000 mark, a lucky draw will be conducted to pick a winner at random. To ensure transparency, the lottery draw is executed using the Chainlink Verifiable Random Function (VRF) during a live broadcast on YouTube. In addition to the milestone-based lottery draw for the grand prize, PandaCash also conducts a biweekly draw where the lucky winners get to own a brand-new PlayStation 5 console.
Maintaining Token Value
While PandaCash starts off with a maximum token supply of 100 trillion $PANDA, it has created an in-built mechanism that stabilizes the value as adoption increases. The project is generous when it comes to offering rewards and burning tokens to ensure long-term profitability for its community. With 50% of $PANDA in circulation, the project has a milestone-based burn program that is linked directly to market capitalization. As the market capitalization grows, the number of tokens burnt will also increase. In addition, 3% of each transaction on the PandaCash network deducted as part of the redistribution fee (30% of the fees) is channeled back to the liquidity pool and the LP tokens are burnt to ensure continued liquidity cycle while avoiding excess market supply of tokens as LP rewards.
Assured Decentralization and Security
The PandaCash community can be assured of the platform’s integrity and the fairness of rewards distribution, as well as the no-loss lottery, draws as entire codebase, and the smart contracts are audited and certified by Techrate.
In addition, the outcome of all lucky draws can be readily verified on the blockchain.
PandaCash is an innovative application of Reflect Finance model that is designed to offer more than just a regular DeFi solution. It offers a low-risk – high reward option for the crypto community, especially to those looking for long-term passive income generation options in the DeFi space.
Learn more about PandaCash at – https://pandacash.io/
Credit: Source link