PRXY Protocol Update and Staking Contract Release Plan

Author: Proxy

Compiled by: ChainCatcher

Dear community and participants,

Thank you for your patience and for giving the team time to adjust and fine-tune the project as we work to adapt the protocol to the market. This time has been well spent evaluating our current product and making adjustments to better meet your needs and prepare for future success.

Our staking and rewards program will undergo changes to become more competitive and provide a high-quality product that meets the needs of both stakers and the project. There is nothing particularly special about liquidity trading governance token rewards in DeFi. This is actually quite common, with protocols and DAOs offering different yields across the board. After deeper analysis, the premise of borrowing liquidity is an unsustainable mechanism, as the reward rates must eventually normalize at some point, especially when the total supply of tokens is only 21 million. We need to find a more meaningful approach rather than sacrificing farms for something temporary.

In two weeks, we will be ready to launch a new staking contract to address these issues, as we shift rewards from liquidity providers to stakers. PRXY will utilize a forked contract from Olympus DAO to provide reward rates, allowing participants to initially earn over 2500% APY through compounding. The core of this staking contract includes a "reward rate," which distributes rewards to the mining pool each period, allowing participants to earn nearly 3 times daily compounding.

When staking PRXY, you will also receive sPRXY (staked PRXY is a rebasing token) at a 1:1 ratio. Adding this address to your wallet will allow you to track your PRXY balance, which will increase with rebase as your PRXY earns rewards in the contract. sPRXY will also be used in the future as collateral for additional borrowing with partner protocols, allowing your staked assets/rewards to be leveraged.

Returning to the issue of using rewards for temporary liquidity, the PRXY protocol will shift its direction from "borrowing liquidity" in traditional DeFi models to using Bonds to "purchase liquidity" for the treasury, thereby creating liquidity pairs for the anticipated BTCpx, which will be launched soon.

Speaking of tokenizing BTC, we are pleased to announce that 3-4 institutions currently in preparation will be able to provide all the BTC needed by the protocol in the short term. The process of selling bonds to provide ETH/USDT/USDC/WBTC to the treasury for free will enable the DAO to control its liquidity pairs with the BTCpx that partner institutions will provide.

The release date for the allocation tokens for all private sale participants is set for November 19, 2021, and we hope that the enticing staking returns of 2500% per year will be sufficient to drive market sentiment in a positive direction.