Prior to the development and subsequent launch of the premier crypto network, Bitcoin, we had to rely on traditional financial institutions like banks to facilitate payments. While diligent, these institutions have in place cumbersome, stressful, and inconvenient principles that do not only delay payments but require users to submit further documentation before certain cross-border transactions are executed.
The launch of Bitcoin, which to a few very percent of experts in the $2 trillion crypto market, marked the first decentralized autonomous organization otherwise referred to as DAO. Unlike traditional institutions, Bitcoin was designed to enable the seamless, transparent, and efficient transfer of assets between parties, regardless of location. Although this premier network cannot be classified as a true DAO, it reflected, albeit in a tiny way, the possibilities of DAO.
As the name implies, DAOs are organizations or systems that are not controlled by a central authority. Members of this organization reserve the sole right to vote on the community. Since the proliferation of this crypto trend, a plethora of protocols have been set up in a similar way, one of such is the ISSUAA decentralized finance protocol.
Set up as a DAO While Offering DeFi Services; the ISSUAA Protocol
ISSUAA, according to its website, is a next-generation decentralized finance protocol that has been designed to enable the creation of derivatives of real-world assets on the immutable and transparent blockchain technology.
Built like most protocols in the $122 billion DeFi market, this DeFi platform saunters an untrodden route. First, it allows the creation, minting, and subsequently, trading of derivative assets, offering investors numerous investment options.
Through its native token, the ISSUAA Protocol Token [IPT], this platform proposes a unique yet immensely profitable token-sharing structure. Additionally, the protocol is community-driven and democratically run, meaning that all token holders can vote on the platform.
The ISSUAA Protocol Token [IPT]
As a governance token on the protocol, IPT is the platform’s native token which, as reported by a recent press release, is capped at 100M.
IPT, unlike a few tokens, has an inner value that continuously grows as a certain percentage of transactions executed on the marketplace are accumulated.
Besides being a governance token, IPT will serve as the protocol’s reward token for investors and liquidity providers [LP] on the network. Before now, most investors have had to make additional investments to recoup profits on competitor platforms like Mirror and Synthetix. As revealed by the previously mentioned source, the majority of IPT will be given as a reward to network users. Per the press release, liquidity providers will also be rewarded to encourage them to keep providing additional liquidity to the network.
Promising a superior and lower risk yield farming protocol, ISSUAA will offer LPs an additional 0.25% of each transaction that is carried out on its marketplace.
Inherently incentivizing token holders will spur them to be honest in their votes, as wrong or invalid results will lead to a lack of trust which in turn leads to lower fees and lower token valuation. According to the project white paper, 10% of IPTs will be managed by an ISSUAA DAO and surprisingly, users can receive grants. However, for that to happen, they would need to stake 50,000 IPTs.
Offering derivatives of real-world assets on the blockchain, ISSUAA will guarantee investors the opportunity to purchase various asset classes. Designed to be miles ahead of its competitors, this DeFi protocol and marketplace will offer capital-efficient, next-gen, and synthetic assets with a clear competitive advantage over some of the other protocols.
Dispelling over-collateralization through short and long pools, ISSUAA attempts to provide investors a low-risk liquidity provision structure.