Thread by @OmarReserved

I have been researching @groprotocol , I think they could solve one of the major problems in finance by providing a simple solution.

👇👇👇Here is how👇👇👇

The returns offered by banks are crappy, we are going towards negative interest rates, which means you pay your bank to keep your money.

For lack of other choices, people are pushed to take tremendous risks with their money.

That's where $GRO protocol comes.

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$GRO are building a set of products that offer depositors yields not seen since the 1980s.

Currently there are 2 products:

✅ PWRD: Powered Savings.
✅ VAULT: Leveraged yield.

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𝑷𝑾𝑹𝑫 𝑷𝒓𝒐𝒅𝒖𝒄𝒕:

✅ A product that earns yield by depositing stablecoins.

✅ Offers deposit protection, losses are absorbed by VAULT.

✅ Uses the usual Defi revenue sources to generate yield like lending income, Liquidity provision and protocol incentives.

...

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✅ PWRD is a stable coin itself that can be used while generating yield.

✅ PWRD token is subject to positive rebase when yield exceeds a certain threshold.

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𝑽𝑨𝑼𝑳𝑻 𝒑𝒓𝒐𝒅𝒖𝒄𝒕:

✅ This product offers higher yield through leverage, PWRD deposit protection comes from the fact that any loss is covered by VAULT first.

✅ Uses the same strategies to generate yield as PWRD.

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Basically the $GRO TVL is a mixture of funds from PWRD and VAULT and it’s their ratio that determines the yields, the protection for PWRD and the leverage for VAULT.

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✅ The more VAULT depositors there are, The more protected PWRD depositors are and the higher the yield for them.

✅ The more PWRD depositors there are, the more leverage is used in VAULT and the higher yield for them.

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Also part from the protocol APY comes from what’s called the HODL contribution. It’s a 0.5% fee that users have to pay when they withdraw their funds, these fees are distributed as yield to the remaining users.

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In the protocol, $GRO is used as a governance token to vote on:

✅ Protocol roadmap: priorities and future projects.

✅ Protocol parameters (including fees or funding rates).

✅ Yield strategies

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That’s all, just wanted to get this out there for those who are interested in generating some yields from their unused funds.

Share if you like.

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