What is Cat in a Box Finance? Cat in a Box Finance is a Lending & Borrowing protocol targeting yield-bearing assets, also known as Yield-bearing Assets. So, if there is anything interesting about Cat in a Box Finance, everyone will find out with me in this article.
To understand more about Cat in a Box Finance, people can refer to some of the articles below:
- What is LSDfi? The First Puzzle Pieces & Potential In The LSDfi Array
- What Are Liquid Staking Derivatives (LSD)? Top 5 LSD Projects with Great Growth Potential
- What is ZeroLiquid (ZERO)? ZeroLiquid Cryptocurrency Overview
Overview of Cat in a Box Finance
What is Cat in a Box Finance?
Cat in a Box Finance is a lending protocol targeting Yield-bearing Assets. Yield-bearing Assets that the platform is targeting are LSTs like stETH. It can be said that together with other protocols Cat in a Box Finance is making the LSDfi picture even more dynamic and colorful.
Users can make profits through Cat in a Box Finance in several ways as follows:
- Borrow boxETH from stETH collateral to participate in DeFi.
- Provide liquidity for the stETH – boxETH pair and collect transaction fees.
- Arbitrage trading.
- Protocol revenue sharing.
Mechanism of action
To better understand Cat in a Box Finance, we will learn about the platform’s operating mechanism through user experiences including:
- Step 1: Users will deposit their stETH (Yield-bearing Assets) into the protocol.
- Step 2: Users will borrow boxETH at a 1 to 1 ratio and participate in DeFi to earn profits. Users can choose low or high LTV in 2 different versions.
While other protocols often attach their derivative assets peg to ETH, the protocol’s boxETH attaches peg to stETH issued by Lido Finance. Cat in a Box Finance will charge 1% of the profits generated from stETH that users deposit into the protocol. What is important to note here is that Yield-bearing Assets (stETH) will continue to earn profits despite being in the protocol. This profit can be used to repay any loan or combined with the deposit balance.
Keeping the peg for boxETH with stETH is very important. Cat in a Box Finance’s peg holding model is an arbitrage business. If the market price of boxETH is lower than stETH, users can buy boxETH on the market and exchange it in the protocol with stETH at a ratio of 1 – 1, vice versa in case boxETH has a higher price than stETH.
Development Roadmap
Update…
Core Team
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Investor
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Tokenomics
Information about Cat in a Box Finance tokens
- Token name: Cat in a Box Finance
- Code: boxFEE
- Blockchain: Ethereum
- Token classification: ERC 20
- Contract: 0xe4b91faf8810f8895772e7ca065d4cb889120f94
- Total supply: Update…
To launch Cat in a Box Finance, the development team proactively sold boxFEE on Uniswap at a 90% discount compared to the later purchase price. The ETH obtained from the sale of boxFEE will be used to build liquidity for boxFEE. Not only that, users can burn boxFEE in exchange for boxETH, thereby getting stETH and exiting the protocol.
Resolvers are arbitrageurs on the protocol who also contribute by paying fees in boxETH. This fee will be used to buy boxFEE and then sent to the project’s Tresury. The project wishes to create advantages for boxFEE holders such as:
- The fewer people who hold boxFEE, the more protocol revenue will be shared by the remaining people.
- The fewer people who hold boxFEE, the faster the support profits will accumulate.
Token Allocation
boxFEE will be 100% distributed to the community through Public Sales on Uniswap.
Token Release
boxFEE will be 100% open at TGE time for the community to comfortably buy and sell.
Token Use Case
BoxFEE holders will enjoy a number of benefits such as:
- Stake boxFEE to earn boxETH on stETH’s side (1% of stETH’s profits belong to the protocol).
Exchanges
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Project Information Channel
Summary
Cat in a Box Finance is a newly built project that contributes to building an LSDfi ecosystem with many different pieces. Hopefully through this article, everyone can understand more about what Cat in a Box Finance is?