Plenty DeFi

What Is Plenty DeFi(PLENTY)? Complete Guide Review About Plenty DeFi.

What Is Plenty DeFi(PLENTY)?

Plenty DeFi is expanding DeFi use cases on Tezos towards a full scale decentralized financial ecosystem. Empowering traders, liquidity providers & developers to participate in an open financial marketplace. When you stake PLENTY, you automatically receive an equal amount of xPLENTY in return. The xPLENTY token is a flash loan resistant token and will be used for governance of the Plenty protocol.

Furthermore, Plenty DeFi continuously compounds staking rewards and trading fees. By unstaking, your xPLENTY tokens are burned and you receive all of your originally deposited PLENTY tokens plus the rewards collected from staking and trading fees. For every swap on Plenty, 0.09% of the total value of the swap is distributed as PLENTY tokens to the xPLENTY staking pool. Such PLENTY tokens are proportionally distributed to the xPLENTY holders according to the amount of their staked tokens and stake duration.

Plenty DeFi Storage Key Points

Coin BasicInformation
Coin NamePlenty DeFi
Short NamePLENTY
Circulating SupplyN\A
Total Supply100,000,000,000
Source CodeClick Here To View Source Code
Explorers Click Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Official Project WebsiteClick Here To Visit Project Website

What is Plenty?

Plenty DeFi is a platform for creating liquidity and trading FA 1.2 and FA 2 tokens on Tezos. You can only swap tokens on Plenty if there is enough liquidity for those tokens. Providing liquidity will get you Plenty Liquidity Provider (PLP) tokens, which will generate rewards in the form of trading fees for making sure there’s always liquidity for the exchange to use. Yield farming lets users that are providing liquidity earn PLENTY rewards by locking their PLP tokens into a farm.

How does Plenty work?

Plenty DeFi is a collection of smart contracts to make liquidity pools and corresponding markets that are compatible with each other. The architecture is based on Uniswap V2. Each pool is defined by a smart contract that includes a few functions to enable swapping tokens, adding liquidity and more. At its core each pool uses the function x*y=k to maintain a curve along which trades can happen. The pools keep track of reserves (liquidity) and update those reserves every single time someone trades. Because the reserves are automatically rebalanced, a Plenty liquidity pool can always be used to buy or sell a token without requiring a counter party on the other side of a trade.

Why can’t I trade XTZ?

Plenty DeFi is the first token-to-token Automated Market Maker (AMM) on Tezos. This means that XTZ trading is not supported. However, trading with a tokenized version of XTZ called CTEZ will be supported in the near future. CTEZ solves the issue of using XTZ inside DeFi contracts without worrying about the governance matter of “who should be the baker” and without the opportunity cost of not delegating.

Are there risks?

Using smart contracts always brings risk. To reduce this risk, the Plenty smart contracts are audited. Both the Plenty DeFi and staking smart contracts were audited successfully. For liquidity providers there is the risk of Impermanent loss. This is a price difference that can occur when holding tokens in an AMM liquidity pool instead of holding them in your wallet. It occurs when the price of tokens inside an AMM diverge in any direction. The more divergence, the greater the impermanent loss.

How are prices determined?

Prices are determined by the amount of each token in a pool. The smart contract maintains a constant using the following function: x*y=k. For example, x = tokenABC, y = tokenXYZ, and k = constant. During each trade, a certain amount of one token is removed from the pool for an amount of the other token. To maintain k, the balances held by the smart contract are adjusted during the execution of the trade, thereby changing the price.

How do I use Plenty?

First you’ll need a Tezos wallet and some XTZ. Plenty DeFi is available at all big crypto exchanges like Coin-base, Kraken  and Binance. Do you hold XTZ? Go to Quipuswap to swap it for PLENTY! Each transaction on Tezos comes with a small gas fee, paid in XTZ, which is a fee for the bakers to keep the Proof of Stake network running. If you are a DeFi user from another blockchain, you can wrap your assets using the Wrap Protocol. Wrap tokens like USDC, BUSD, LINK, MATIC, or WBTC, and use them on Plenty to trade and earn yield.