Slap Finance is a DEFI project that reinvents the Olympus Dao protocol on the Avalanche network. There are many OHM forks out there across various chains. However, the challenges facing the protocol are still in existence. Slap Finance isn’t another copy and paste stuff but is out to address those issues especially where it concerns liquidity.
What makes Slap unique and different from other OHM forks?
The Spontaneous Liquidity Accumulation Protocol (SLAP) is the next generation DeFi Protocol that enables on-chain liquidity to build spontaneously, automatically, and in a trustless way. SLAP stakeholders will be eligible to receive incentives in stable coins rather than through inflating the protocol’s token.
SLAP’s mission is to become the most creative value anchor in the crypto world, with ever-increasing liquidity, and to establish a portal for new-born projects to successfully accrue liquidity when they launch.
SLAP’s Key Characteristics
- Ever-increasing liquidity
- Constant buying power
- 100% protocol controlled liquidity
- Hard Money Yields
SLAP’s platform native token (STEAM)
STEAM is the platform token for the SLAP. It is compliant with the ERC-20 standard, is non-inflationary, and does not have a supply cap.
STEAM does not have a guaranteed or set price, but it does have a potential price floor. It does not have any liquidity through mining. Through bonding by the bonding contract or minting by the allocation contract, newly produced STEAM is always born at a cost, at or near market value.
Only the bonding contract or providing liquidity to the allocation contract can produce STEAM.
Users may acquire STEAM tokens with other crypto assets and have them vest in a short period of time thanks to the bonding contract. As a result, owing to arbitraging operations, users will need to pay for the freshly generated STEAM, maybe at a discount, while still being close to the market price. STEAM is created by issuing bonds at or around market value.
The allocation contract’s mint-and-add-liquidity method can also generate fresh STEAM. Newly issued STEAM tokens are matched with stablecoins of the same value from the treasury and sent straight to the protocol-controlled liquidity pool. As a result, rather than being sold, these newly generated STEAM tokens may only be purchased by others.
They’re put into the liquidity pool at the current market price, because the pool’s Uniswap v2 mechanism needs the paired tokens to have the same value input.
Therefore, since STEAM tokens have not been allocated to the SLAP team, the SLAP team does not have any free STEAM tokens; hence there will never be any STEAM dumping pressure from the team.
When it comes to rewarding protocol users, STEAM will not be inflationary. Only by bonding or pairing and contributing to the liquidity pool can the platform’s token be produced. This means that no free STEAM tokens will be produced.
Stakers in STEAM are rewarded with stable coins rather than inflation. These incentives are derived from the protocol’s income in STEAM bonding.
The purpose of SLAP is to become the value anchor of the crypto market by raising liquidity and lowering slippage, as well as building a platform for new-born projects to successfully generate liquidity upon its launch.
Reasons Why SLAP will continue Functioning properly
- Liquidity is increasing at an ever-increasing rate.
Adding liquidity processes and minting/buying back processes will lead the protocol-controlled liquidity pool to grow over time. And at the same time, STEAM trade slippage will continue to decrease.
Among the SLAP’s long-term ambitions, one is to become a crypto market value anchor with incredibly deep liquidity.
- SLAP Pro
When new projects are born, SLAP Pro will become a platform for them to successfully gather liquidity before launching. SLAP will charge a fee for offering this service. During the launch, new projects will not be required to rent liquidity from users with heavy inflation. They can apply for SLAP Pro in order to collect POL in a decentralized, efficient, and straightforward manner.
- Positive market loops are generated via profits on stable assets.
Even if the price goes down, the APR in stable currencies will rise, making the holding and staking method more appealing.
As STEAM is sold into the liquidity pool, there are fewer tokens in circulation. A smaller number of tokens can be staked. This raises the APR as well.
Each staker owns a portion of the treasury. As the treasury grows, so do the rewards for staked users, on a pro-rata basis.
- Bonding in conjunction with a dynamic buy-back mechanism
As a result of the bonding, Treasury reserves will be increased. Bond prices are algorithmically managed, resulting in a reduced rate of market prices.
The allocation contract will continuously buyback STEAM from the market, increasing liquidity.
Once the bonded price is greater than the market price, the contract will dynamically modify the buying back ratio to be higher, creating a positive push for STEAM’s value.
Problems to Be Addressed By SLAP Finance
Liquidity is the backbone of every smart contract, whether it’s traditional or decentralized.
After Compound Finance first introduced liquidity mining or farming models, they have been extensively used in several DeFi projects. Projects are paying liquidity mining bonuses as rent for borrowing liquidity from market participants, particularly in conjunction with the Uniswap V2 model.
Unfortunately, this frequently results in hyperinflation, particularly during the bootstrapping period, when procedures must provide significant incentives to entice yield seekers to supply cash. Furthermore, whales may wind up controlling liquidity, which means that if whales quit participating, a project might suffer profound consequences.
2. Value Anchor in Crypto markets
In the crypto markets, there is a value anchor. Stablecoins anchored to the US dollar continue to dominate the crypto market’s value measurement.
Is it, however, the best option for a decentralized market that operates on the blockchain? While SLAP’s strength is in offering constant token yields in the near term, their long-term goal is to bring a better solution to the crypto industry. STEAM will become an anchor of value over time, much above the capabilities of fiat-pegged stable coins, because incentives are not provided by inflating the STEAM token and the protocols are continually growing liquidity.
SLAP Finance has the potential to give outstanding rewards to early players, particularly stakers, as the market price will most likely be inflated early on, and the bond price will rise alongside. Also, early investors will be eligible for shares in the pro-rata distribution of treasury assets.