ProtoFi, an AMM and yield-farming protocol that offers enhanced asset protection, is currently live. The company has many tasks ahead of it, including a dual token system and dividend payout. Do you think it is worth it? Let’s dive in.

Crypto startups promised simple financial tools to simplify complicated financial management in 2020 with the rise and popularity of DeFi. Users were heard all over crypto. However, only a few reached the goal – many needed some time to develop.

ProtoFi does not make exceptions. The protocol is the latest innovation in the crypto space – it was built only recently and has already passed an audit. Its roadmap has features you won’t find in other projects such as fee sharing yield, decrement of deposit fees, quantum supply and many more. The potential for growth is tremendous. ProtoFi, which is built upon the Fantom network has been secured by CertiK. The team also completed KYC.

The History

ProtoFi was started by professional teams from finance, computer science, entrepreneurship, and other backgrounds. Its ultimate goal to make ProtoFi a significant player in the Blockchain space is to provide a new way for crypto cash protection from scammers and volatility, as well as a fair distribution of income through a dual-token system.

Tokenomics

ProtoFi runs on a unique dual token system. Its primary native token, PROTO, can only be purchased on the protocol’s proprietary decentralized crypto exchange for now. PROTO can be used in a variety of ways within the project’s eco-system. For now, staking PROTO into pools created by the token will allow users to get ELECTRON(ELCT) tokens. These tokens represent a percentage of revenue from the swap and deposit fee activities as well as any income-generating activities the protocol may engage in in the future. The token will allow participants to access unique and one-of-a kind NFT collections, with rare properties. This will increase their return rate in select pools. According to team, this will be available in the very near future. All holders of tokens are eligible to receive a part of ProtoFi’s revenue generated by ELCT. The final amount of generated yield will depend on the user’s amount of accumulated ELCT and the amount of protocol generated fees.

Security

While security is essential, it hasn’t yet been an integral part of cryptoscope. New projects are more focused on speed. The rise of hacks and market manipulation startups has made it necessary to think twice about releasing products. ProtoFi provides protection against unfriendly intrusion via three mechanisms: Quantum Supply (NASDAQ::) Supply), Protoshield and ChronoLock. The teams has been KYC’d and passed an audit with CertiK, a leading auditing firm with no-error-allowed policy. This was a rare instance of crypto startups undergoing such an extensive check in the past decade. That, in conjunction with other factors, led to bubbles such as the ICO boom in 2016-2017, where investors had no guarantee of the funds’ safety.

Quantum Supply

Quantum Supply protects native assets against market swings with a flexible supply mechanism. It changes the PROTO’s emission rate with an outlook on the crypto market situation. That way, ProtoFi kills two birds with one stone – Quantum Supply supports the token’s price and doesn’t let the bad actors de-value the asset.

Protoshield

Protoshield is another feature aiming to minimize the effect of whale manipulation and the “pump and dump” technique. Protoshield, which is basically a monitoring system, imposes limitations on token sales in order to preserve value.

Chronolock

Pools and farms are also vulnerable. Bots could infiltrate these areas to gain APRs. ProtoFi says it wants to help the community, make profits and ensure fair play for all. ChronoLock is a protection mechanism that protects farms and pools. It imposes harvest restrictions to stop bot activity.

NFT-promoted Farming

NFT-boosted farming is another interesting ProtoFi feature, but it has not yet been released. The NFT-boosted farming was created by The Fantoms to offer users the opportunity to boost their rewards with the exclusive NFTs. Users can choose from five rarity levels, which range in level from Basic to Legendary. This depends on how much they invest. ProtoFi NFTs have a lower chance of receiving rarer NFTs if a user invests more money. In turn, this increases the rate at which they can earn NFT-boosted farm returns.

Wrapping up

ProtoFi offers more than a protocol. It is an ecosystem that allows users to trade, farm and make money. There are many assets available, from tokens and coins to NFT visuals. The native tokens can still be traded freely, but protection mechanisms limit black swans and whales’ influence on the price. While the protocol is still in its initial version, there will be new features and updates over the next few months. The team has been hard at work. Just recently, ProtoFi raised $300k through IDO in under 45 minutes, and has attracted over 7M of TVL in just over 3 hours from it’s launch today at 12:00 PM UTC, which tells a lot about potential and investors’ sentiment.

Verdict

ProtoFi has unique features not found in any other startup. It is a novel idea to allow active users to contribute their company’s profits. This could be an inspiration for others in the DeFi space. The strong protection system and successful audit at launch make it safer for crypto-buyers who are more cautious. ProtoFi’s start was great and the future is bright. It is rare to find an early-stage project worthy of being studied right at the start.

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