HomeCOINSWhat Is Paladin (PAL)? Complete Guide Review About Paladin.

What Is Paladin (PAL)? Complete Guide Review About Paladin.

What Is Paladin (PAL)?

Deposit, borrow and manage governance tokens on the leading decentralized influence protocol. The experience of creating proposals to improve a protocol is costly and time-consuming. Paladin allows anyone to jumpstart the proposal process with greater speed and convenience. Paladin is a decentralized, non-custodial governance lending protocol where users can either loan the voting power in their governance token, or borrow some voting power. Depositors stake governance tokens or derivatives that grant voting power in exchange for yield, while borrowers can leverage their voting power to gain more influence temporarily.

Paladin Storage Key Points

Coin BasicInformation
Coin NamePaladin
Short NamePAL
Circulating Supply2,500,000.00 PAL
Total Supply50,000,000
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Official Project WebsiteClick Here To Visit Project Website

Set and forget interest-bearing tokens

Valuable governance tokens often sit idle – Paladin lets you earn interest when activists need to amplify their vote. The best part? Your tokens never leave the protocol. When governance power is borrowed from a Paladin market, the pool creates a loan that delegates voting power to the desired address of the borrower. The borrower never takes possession of any tokens. They just receive the delegated voting power depending on the amount of fees paid in the loan and the current borrow rate.

Markets Created

Paladin can integrate into any governance system that utilizes delegation mechanisms. As of now the team is hand picking select protocols with the goal of later simplifying this process. Contracts are created by Pal Pools to hold the governance power borrowed by the user. A Pal Loan is a Clone of one of the Delegator contracts, depending on the token to delegate. Each Pal Loan is represented by a Pal Loan Token.

Tokens return

Tokens are transferred out of their main pools and into a loan contract controlled by the protocol. Once the loan is closed the tokens return to the original pool. The borrower never interacts with these loan contracts, they just receive the delegated voting power. Paladin are the main component of the Protocol. Each PalPool is independent and holds its own underlying ERC20 governance token. Users can deposit the underlying token in the PalPool, receiving an amount of PalToken representing their share in the PalPool, and receive part of the fees of the PalPool.

The main use of the PalPool is to Borrow voting/proposition power. When starting a Borrow, the PalPool will create a PalLoan, by cloning the Delegator contract set in the PalPool, it will transfer the amount of tokens borrowed and the fees paid by the borrower, delegate the PalLoan voting power to the borrower, and issue a PalLoan Token to represent the ownership of the PalLoan. The Borrow can later be extended, closed (and the unused fees will be returned to the borrower), or killed if all the fees were used. The owner of the Borrow can also change the recipient of his PalLoan voting power.

Governance systems

Borrowing fees are determined by demand and pool utilization so the more tokens borrowed the higher the borrow rate and vice versa. The cost of borrowing can’t be lowered without creating security risks for governance systems. For now smaller holders should deposit into pools to compound their tokens. However, Paladin is developing coordination dapps that’ll make it easier for smaller activists to pool resources for greater influence in governance.

Governance Attack

Every Paladin pool utilizes a jump rate that will spike the borrow rates if too much power from the pool is used. The protocol has also developed a V2 interest calculator that is based on governance values such as proposal threshold and quorum amount. This method calculates a borrow rate increased by a multiplier to prevent any cheap access to huge amounts of voting power that could hurt governances.

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