Project W is concentrating on wrapping tokens that can provide stable and high yields. These tokens are swapped cross-chain to the TRON blockchain and implemented into the Project W DeFi environment to increase the yield for investors interested in fast and low barrier DeFi.
1. DeFi Environment
The current DeFi market started from Ethereum and decentralized exchanges like UniSwap and is growing on a daily base in numbers. But high transaction costs and in general low TPS from the Ethereum blockchain are making it difficult for B2C projects to engage their investors. Alternatives like Tron or EOS are offering higher TPS-based blockchain technology including lower fees.
2. Vision for Project W
We have decided to concentrate after several tests on different blockchains on the TRON blockchain, as the current DeFi environment is growing and the barrier for B2C projects is much lower for startups and also investors. Our core values are as follows.
- Identifying high yield tokens to wrap and simply the earning process on Tron.
- Lower the barrier to join the Tron DeFi environment
- Create a decentralized project based on a governance token without any pre-mining or founder's cut, VC share, etc.
- Implement easy cross-chain Swap systems with a reserve of at least 10%
- Generate reverse vault systems without impermanent loss with interest income from cross blockchains
3. How To Achieve?
- Identifying High Yield Tokens
- Wrapping and creating reverse vault systems to supply stable and constant streams of interest from cross blockchains.
- Leveraging the TRON Blockchain with low fees and high TPS.
4. First Wrapping Token - Steem
Steem is a community-driven DPOS Blockchain that is coming with a high APY for staked Steem if you participate actively within the community. These high yields will be leveraged, as we will stake the swapped Steem with a reserve of 10%. There is an unstaking cooldown time of a total of 4 weeks, which will be managed with a constant power-down mechanism to keep the reserve on a minimum level of 10% of the swapped tokens.
The swapped Steem can be used to stake it as LP at Project W to farm Governance tokens (PWT) or for trading directly with other TRC-20 tokens like TRON, USDJ, or USDT.
5. Steem-WST Swap Mechanism
To use the Swap page and swap from Steem to a TRC-20 based WST (Wrapped Steem) token, you will need a PC browser that supports both Keychain for Steem and Tronlink. Both links for Steems Keychain and Tronlink are below. Mobile implementation is not planned for the beginning but an important milestone for usability in the near future.
To interact with the Swap page from Project W, you will need to have access to the keys of each Steem and Tron account. This means that addresses from centralized exchanges will not work. Nor will it be possible to swap directly to a centralized exchange account, unless you are in control of that exchange.
The minimum swap amount is 1 Steem (or 1 WST) and there is a fee of 0.3% for each swap.
5.1 Reserve mechanism
Swapped Steem will be staked to participate on the Steem network and gain access to the reward pool. Project W will manage the stake with financial delegations and direct curation programs to keep the income balanced. The liquid reserve for the swapping pool will be kept on a level of about 10% but not lower than 50,000 Steem. The minimum swap reserve will be incrementally increased to up to 100,000 Steem as a minimum. The reserve % can be changed later based on community governance.
6. Token Economy and Data
6.1 WST Token (wrapped Steem based on TRC-20)
WST is a wrapped token based on TRC-20. You will be able to swap your TRC-20 based WST always 1:1 back to Steem. If your requested swap amount is bigger than the reserve, you can ask for the "Preorder Swap Qty.". Based on these requests the contract will automatically power-down the needed amount of Steem. Based on the requested Swap Qty. versus the total staked Steem Qty. the Preorder Swap mechanism will take from 1-4 weeks for a full swap (Limitation of Steem Blockchain). Your TRC-20 based WST tokens will be locked when they are in the "Preorder Swap Qty."
WST tokens are only minted when the swap pool does have the requested Steem deposited or claimed.
Project W is aware of the fact that Steemit Inc. is preparing an internal mechanism on the Steem wallet to swap Steem directly or indirectly to a TRC-20 token. WST as a wrapped Steem token is in no way in competition or harming these developments but is seeing a chance to enhance the usage of Steem on the TRON network, bringing wrapped Steem into DeFi.
6.2 PWT Token (Project W Governance Token)
PWT tokens can be farmed while providing liquidity and stake those LPs on Project W. The technical and theoretical value of PWT is equal to zero. Value for PWT, if there is any, would be determined by the community itself.
- Ticker: PWT (Project W Token)
- Total Supply: 100,000 PWT
Utility for PWT
- Governance (Vote)
- Reverse Vault Staking
6.3 Reverse Vault System
Vaults are financial systems that allow to invest and deposit tokens into vaults and farm high yields without a higher risk of impermanent loss. In normal cases, the deposited stake is reinvested with a smart automated mechanism either into other vaults or financial instruments.
Reverse Vault systems are getting their high yields not from the deposited tokens directly, but from investing and managing swapped original tokens with a reserve mechanism without any impermanent loss. These yields are then distributed into a specific PWT vault and a wrapped Token vault, in this case, WST. Reverse Vault systems will be implemented at a later stage when the liquidity for WST and PWT is solved due to staking on Project W.
It is planned to distribute 75% of the Steem Reverse Vault into the PWT vault and 15% to the WST vault. 10% of the income from the Steem Reverse mechanism will be deducted as an operation fee.
7. Launch Date
Project W will open its beta service end of September - beginning of October 2020. We are in the moment in crunch mode and fixing the last bugs, trimming the architecture and testing, testing, testing.
At launch, we will have ready,
- the basic swap page (without Preorder Swap Qty.)
- WST-TRX LP Mining for PWT
Detail information about the mining pools like halving and pool size will be announced with the beta launch.
- Main Blog: https://steemit.com/@projectw
- Medium Blog: https://medium.com/@projectw
- Twitter: https://twitter.com/Projectw_io
- Homepage: https://projectw.io
Project W is in beta and should be used at your own risk.