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The DeFi Collective is partnering with Possum Labs

The DeFi Collective is partnering with Possum Labs

The DeFi Collective is proudly supporting Possum Labs , a DeFi platform on Arbitrum that introduces a novel method for immediately accessing upfront yield in a way that is truly sustainable and positive-sum for all parties.

What is Possum Labs?

Possum Labs is on a mission to spearhead the development of Positive Sum DeFi. The main protocol they are developing is Possum Portals. Portals introduce an innovative approach to the yield tokenization meta.

Portals enable users to access the yield upfront

Portals enable Depositors to stake a yield-bearing asset and access the yield upfront, denominated in PSM tokens. The PSM token can then be sold to capture the yield. The depositor will then wait for its staked tokens’ energy to recharge so that its deposited funds are available to unstake. Portals automatically buy back PSM with the yield generated by deposits to achieve a balance between buying and selling.

After the initial success of Portals v1, Portals v2 is coming out soon with more supported assets and a series of features that have been radically improved vs. v1 to make the platform more efficient for Depositors, Funders, and Arbitrageurs alike. v2 also introduces the use of Vaultka vaults as the source of yield.

Ethos alignment

“We’re not building a product for VCs; we’re building a product for the users.” This is a quote from the Twitter Space , which featured the DeFi Collective and Possum Labs on May 3rd, 2024.

Possum is striving to build what the DeFi Collective calls genuine DeFi. The maximally decentralized one that ships immutable code and that is censorship-resistant. What resonated particularly with the DeFi collective are these bold yet essential choices:

  • No VCs
    • The protocol was bootstrapped.
  • No private sale
    • Everyone has the same access to the PSM token.
  • No protocol fees
    • The PSM token has intrinsic value as the main currency of the system, representing future yield. Unlike most other projects, the mechanism to accrue value to the PSM token does not have to be fee redistribution. This design choice enables a fully fee-less protocol.
  • Fixed supply
    • The team cannot mint new supply. The goal is to be fully decentralized, i.e., to get rid of the treasury sooner rather than later.
  • No governance linked to the token
  • Immutable and censorship-resistant code
    • Once live on the blockchain, the protocol is unstoppable.

How is the Collective helping?

Having deep liquidity on their token is at the forefront of all protocols, but it is essential for the success of Portals. Portals let you speculate on future yield. If there is no liquidity for future yield, you can’t buy or sell it efficiently. Portals need deep liquidity to create value for their users.

The DeFi Collective is committed to supporting the Possum Labs team in liquidity management for the PSM Token:

  • The DeFi Collective has seeded the PSM/LUSD Liquidity Pool on Ramses using $30k worth of PSM tokens it received from the Possum Labs team and $30k LUSD it added from its treasury.
  • We provide further support through vote incentives to continue attracting liquidity in that pool, leveraging our 8.5m veRAM position.

We look forward to the launch of Portals v2 and cannot wait to see what is next for Possum Labs.

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