Product Description
Growi.LP is a protocol that invests in other protocols where a profit (“yield”) can be earned — this profit is earned in stablecoins (in $). It would fall into the category of “yield farming”.
The big difference between Growi.LP and other products is that usually Yield Farming products:
- Have high risks due to the movement of cryptocurrencies (impermanent loss is not covered).
- Require the user to analyze hundreds of pools in different protocols to see which one has good profitability.
- Require the user to actively monitor the position, as the profitability of different assets changes daily — something that is profitable now may not be profitable in a few hours.
Growi.LP solves these problems:
- It´s SIMPLE: you deposit your money in our protocol and we automatically invest it [it’s our algorithm that automatically scans the different pools, sees which is the most interesting to invest in, evaluates the open pools and protects your investment].
- SAVES TIME — you no longer have to analyze pools and keep an eye on positions
- It´s SAFE — for this we act on different axes: (see the Lite paper for more details on each category)
- IMPERMANENT LOSS: we radically reduce the risk of impermanent loss.
- BACKSTOPS: we impose rules to protect you from unexpected drops of both, stablecoins (reducing the effect to avoid what happened with UST) and tokens.
- DECENTRALIZED (and therefore TRANSPARENT): being fully DeFi, everything we do is recorded on the blockchain — through our public contract, you can know where your funds are at any given moment. What happened to Celsius or FTX cannot happen to you.
- TOKEN SELECTION: We limit the tokens we can invest in to avoid potential problems in advance.
- DIVERSIFICATION: no position or token can reach more than 20% of the amount invested, as a redundancy measure in addition to all the above.
- It´s PROFITABLE: in addition to all the above, the automatic scanning of so many pools allows us to obtain a stable and positive return.
In exchange for all of these benefits, Growi.LP charges a very low commission of 1% per annum on the LTV in the protocol, calculated on an ongoing basis. [TVL = Total Value Locked, the total amount of tokens in the protocol, measured in $].
Growi.LP can invest in any instrument/protocol that meets the following conditions:
- Be DeFi: the protocol in which you invest must necessarily be decentralized, to have traceability of funds, for security.
- Be able to hedge the position: the tokens invested in must have a future available in a protocol that is DeFi, to reduce the impermanent loss.
In particular, Growi.LP could invest:
- As a liquidity provider — in DeX with AMM, providing liquidity for exchanges to be made between tokens is rewarded with commissions that our protocol would earn.
- Doing Lending — another source of revenue is lending tokens — as long as the protocol has sufficient collateral to repay the loan, Growi.LP could invest in it.
- Doing Staking — to do staking, cryptocurrencies are locked for a period of time to validate transactions from a blockchain.
Growi.LP currently acts as a liquidity provider. As the protocol evolves, more revenue sources will be added. The more sources that meet the security requirements, the more likely it is that a higher yield will be achieved.
