Introducing Pantheon Finance and Poseidon Farm
Pantheon Finance is a new structure of yield farming that has never been seen before, launching on the Polygon Blockchain. New liquidity incentives, low inflation, and multiple burn mechanisms are the foundation of this ecosystem upon which low fee decentralized finance products will be built.
Our model has an emphasis on sustainability and token holder protection through meaningful changes away from the traditional yield farm system. True to our name, our protocol will be a temple of different greek god themed tools. The first, Poseidon, will be the farming infrastructure involved with building a foundation of liquidity for the protocol.
And what if We told you that with our initial farm, Poseidon, we could solve all of the problems with yield farms and crypto liquidity in general?
Let’s start with the basics of traditional yield farming: farms are created with liquidity pools and single staking pools that reward in an inflationary native token. These typically last a few days and rug liquidity providers while benefiting non-native staking. This is effectively a transfer of wealth from degens to whales that know how the game is played.
Poseidon fixes this problem in a variety of ways. First, the rewards are sustainable with low minting and APR help from transaction fees that are sent to liquidity providers. This means that staking rewards are not as inflationary as traditional high apr farming. Secondly, the lack of single staking pools means that whales and outsiders are not capable of benefiting from other user funds with little risk. At Poseidon, we want to make it an equal playing field that rewards active participants in the protocol. The truth is that single staking doesn’t benefit the protocol or users long term.
Poseidon also revolutionizes the yield aspect of yield farming. Since there wiill be a low inflation after the initial minting, the yield will also come from transaction fees. Our token has a 20% fee on buys and sells that mostly goes to rewards for our liquidity providers and token burning. Some may think this is a hefty fee, but this helps the protocol in two ways: First, pairing with another token to stake for rewards in our liquidity pools means that the real fee is 10%. Additionally, the only users that pay a real 20% fee are traders. This actively incentivizes liquidity provision to the highest degree. We chose the 20% fee because the total LP fee of 10% is close to the popular and successful Safemoon.
What do we hope to accomplish with this next generation of yield farm? Poseidon hopes to provide liquidity as a service with good projects and partnerships that benefit everyone. Our structure allows us to have the highest liquidity/Market Cap ratio yet. We estimate that more than 90% of our tokens will be in liquidity in order to access staking rewards.
Extremely high liquidity is a game-changer compared to other farms where liquidity is fractions of the market cap and a whale selling his bag drastically drops the token price. Our focus on the common investor plays out in a variety of ways in our farm theory.
When prices are high and whales sell, the APR increases from transaction fees and less value staked. This protects stakers with an inverse relationship between price and APR. Additionally, when whales unpair and sell, they have higher slippage due to less liquidity. These functions create a constantly stabilizing APR and price.
However, this is just the beginning. Pantheon Finance hopes to bring more new ideas to the crypto space with more efficient protocol improvements and revolutionary tools.
