Continuing with the series about the Sphere Finance ecosystem, today we will learn in detail about the Penrose project, a spearhead that Shpere Finance seconded to Polygon to dominate the market.
To understand more about Penrose, people can refer to some of the articles below:
- What is Sphere Finance? Overview of Cryptocurrencies Sphere Finance
- What is Yield Farming? Make Profits As People Become “Farmers” In DeFi
- What Are Yield Derivatives? Will Yield Derivatives Become the Next Trend of Yield Farming
Overview of Penrose
What is Penrose?
Penrose is a protocol that optimizes yield, voting rights, and directs liquidity on Dystopia. Dystopia is a decentralized exchange (AMM) on Polygon.
If you have read my previous article about Sphere Finance, you probably understand that Penrose’s operating model is taken from the very successful models of Curve and Convex, the only difference is that it is built for the Polygon ecosystem. Penrose here will act as the reward navigator for the pools on Dystopia.
Mechanism of action
To understand Penrose’s model, let’s recall how the ve(3,3) model works:
Dystopia has two main tokens: DYST and veDYST. DYST is the main token of the project and will be used as transaction fees and rewards for pools on Dystopia. veDYST is a token used for liquidity navigation to see which trading pool will receive the most DYST rewards. To own veDYST tokens, people will have to lock their DYST for a maximum period of 4 years. The longer they lock, the higher the conversion rate from DYST to veDYST will be.
However, some users just want to receive profits but do not want to lock tokens for so long.
Penrose was born with users only needing to lock their DYST tokens into Penrose and receive PenDYST at a 1:1 ratio. It can be converted to DYST at any time and users can still receive profits. like when locking it on Penrose, in addition to some other benefits including:
- Transaction fees on the platform, paid in DYST.
- Bribe fees from projects that want to direct liquidity to their pools.
- Pool trading fees.
- Rewards from Penrose are paid in PEN tokens (PEN is the project’s native token)
Everyone can sell PenDYST tokens at any time at PenDYST/DYST pool -> Liquidity unlocked
Development Roadmap
Update…
Core Team
The project was built by the Sphere Finance team and 0xLegion.
Investor
Update…
Tokenomics
Information about Penrose tokens
- Token name: Penrose token
- Ticker: PEN
- Total supply: Unlimited
- Blockchain: Polygon
Token Use Case
The project has 3 main types of tokens, including PenDYST, PEN, vlPEN. In there:
- PenDYST is the key version of the DYST token on the Penrose platform
- PEN is the project’s native token, used to reward penDYST stakers, provide liquidity for the PenDYST/DYST and PEN/WMATIC pairs, and lock PEN to receive vlPEN.
- vlPEN is the project’s governance token, used to direct liquidity on Dystopia.
Exchanges
Everyone can buy PEN through the PEN/WMATIC pool or stake DYST to receive
Penrose Project Information Channel
- Website: https://penrose.money/
- Twitter: https://twitter.com/PenroseDeFi
- Discord:
Summary
Penrose’s operating model is a relatively complete folk version of Curve and Convex and I haven’t really found anything truly outstanding from the project. To attract more users, the project should have new and more creative developments.