"The Heartbeat of DeFi" is here...
🎯 Targetting a $570T~ TradFi sector
🤔 Can this be the tip of the spear we've needed to disrupt TradFi's dominance of global financial markets?
🔥 Introducing 'IPOR Labs - Interest Rate Derivatives.'
Let's find out... 🧵
In this thread, we will cover the following;
1⃣ What is IPOR?
2⃣ IPOR Infrastructure
3⃣ Who could benefit?
4⃣ The Team
5⃣ IPOR Tokenomics
6⃣ TVL (Total Value Locked)
7⃣ Security
8⃣ Conclusion
9⃣ Socials and Additional Resources
1⃣ What is IPOR?
IPOR Labs is a first-of-its-kind DeFi Protocol.
Best referred to as a series of smart contracts that provide benchmark interest rates and enable users to access Interest Rates Derivatives (Swaps) on the Ethereum blockchain.
It’s possible by combining three core infrastructures;
• IPOR Index
• Liquidity Pools with Automated Market Makers (AMM)
• Asset Management Smart Contracts
Additional infrastructure will also be its DAO component which is already well-geared towards.
🔸 What is an interest rate swap (IRS)?
An interest rate swap is a financial derivative that parties use to exchange interest rate payments.
Trades are helpful when one party wants to receive a settlement with a variable interest rate while the other wants to limit future risk by receiving a fixed-rate payment instead and vice versa.
🔸 How does this work?
Generally, the two parties in an interest rate swap are trading fixed and variable (floating) interest rates.
For example;
One person may have a bond that pays a variable (floating) interest rate of 1%, while the other party holds a bond that provides a fixed payment of 1.5%.
💡 Each party believes they can lower interest rates by swapping; that is the only scenario that they change their interest rates.
🔸 Interest Rate Derivatives in TradFi
Interest rate swaps are critical to the global financial system, helping governments, businesses and investors exchange a fixed payment for a floating price or visa-versa.
💡 Interest rate swaps in DeFi serve as the tip of the spear aiming to disrupt TradFi's dominance of global financial markets.
A comparison between DeFi and TradFi is shown in the picture.
2⃣ IPOR Infrastructure
🔸 IPOR Index
The index interacts directly with stablecoin contracts on @AaveAave and @compoundfinance to take an aggregate interest rate across the protocols.
Multiple Indices represent risk-free interest rates for a corresponding asset, such as IPOR USDT, IPOR USDC, IPOR DAI, IPOR ETH and so on.
Risk-free credit market rates have long been a cornerstone of financial markets.
💡 This is why IPOR can be referred to as;
💓 “The heartbeat of DeFi”
🔸 Liquidity Pools and AMMS
Depositors can earn a yield on deposits by providing a trading counterpart for market participants.
In exchange, the liquidity providers receive a proportional share of the;
• Fees charged when opening derivatives
• Fees charged when withdrawing liquidity
• P&L from the trades realized and unrealized)
• Delegation of cash to the money markets through Asset Management.
We are seeing APRs ranging from ~80-90% for the following when staked;
• $USDT
• $USDC
• $DAI
🔸 Derivative Contract and Swap
It consists of the IPOR rate and the AMM pricing to open a derivative contract between a market participant and the pool.
The contract manages the agreement between the market participant and the LP and, once closed, allocates the parties the corresponding contract payoff.
The first IPOR derivative is an interest rate swap that allows a market participant to Pay the Fixed rate and receive the floating rate (payer) or the fixed rate and pay the floating rate (receiver).
💡 Interest rate swaps are some of the most widely traded derivatives in traditional markets, accounting for 2/3 of the global derivatives market value ($10.5T). They provide stability by allowing borrowers and lenders to control costs and forecast income.
🔸 User Interface Experience
A seamless user interface is a cornerstone of any product, and IPOR is no exception.
Easily distinguishable areas and a clean and super smooth interface allow for a beautiful user experience.
💡 Congratulations to Rebeka Kozla (UX Designer), Kuba (Frontend Developer) and others involved for your efforts here.
3⃣ Who could benefit?
I will reference the best example I could find to clarify; see the picture.
Thanks for @theguywhowrite for a light example in your medium article.
Please give him a follow and find the link for his medium in Socials and Resources section.
Another example is out of pure speculation and the hunt for leveraged trading, i.e. profit.
Participants may speculate interest rates may go up or down with the power of 1000x leverage.
❌ Fear not of leverage!
IPOR leverage is unlike perpetual, where you might get liquidated because of substantial influence after a sudden price change. In IPOR, PnL is accrued over 28 days. So sudden changes in interest rates won't get you liquidated.
4⃣ The Team
The IPOR Lab team comprises 11 individuals with six high-level advisors in the project.
They have vast and long backgrounds in blockchain, payments, investment banking and computer science.
The leadership team include;
🔹 Darren Camas @darrencamas - Co-founder & CEO
🔹 Dimitar Dinev @dimitardinev7 - Co-founder & CSO
🔹 Mauricio Hernandes PhD - Chief Scientist
🔹 Wookash @lukaszmuzyka - Head of Product
🔹 Vlad Dramaliev @vdramaliev - Director of Marketing
🔹 Konstantinos Tsoulos @this_is_ypsilon - Head of Business Development
5⃣ IPOR Tokenomics
The $IPOR token is the protocol native token used by the parties involved with the project; builders, investors, liquidity providers and the like.
• 100,000,000 tokens were minted and can no longer be minted
• ERC20 token issued on the L1 Ethereum Blockchain
• Extremely clean and complex contract
The purpose of the IPOR token is to allow protocol users to take ownership of the IPOR Protocol as it transitions to a fully decentralized DAO.
Other benefits include;
• Governance of IPOR DAO
• Boosted Rewards on Liquidity Pools (pwIPOR see below)
• Increase APR of liquidity providers (pwIPOR see below)
🔸 Token Allocation
🔹 30% Dao Treasury - Governed by IPOR DAO
🔹 25% Liquidity Mining - Emissions 1.5 Tokens Per Block
🔹 12.76% Operations - No Vesting. DAO
🔹 20% Core Team - Linear Vesting over three years, no cliff
🔹 11.85% Investors - Linear Vesting 3 Years, no cliff
🔸 Emissions (Inflation Rate)
The inflation rate starts at 10,800 IPOR tokens per day for the first three months and can be revisited and readjusted by the DAO.
💡 This is minimal, and I don’t see it impacting the chart or potential IPOR investors in any way, considering the project’s potential.
🔸 Power IPOR (pwIPOR)
The purpose of the Power IPOR tokens ($pwIPOR) is that they are the staked 1:1 equivalent of $IPOR with the below functions:
• No long lockups (14 days)
• Users can delegate pwrIPOR to multiple incentives (governance, liquidity mining, boosts and more)
An excellent thread on the true potential of $pwIPOR can be found here by @Marco_112358.
twitter.com/Marco_112358/status/1605562722946412544
The key takeaways are as follows;
1. wIPOR tokens allow protocol customize modules and use pwIPOR tokens in multiple modules (governance versus emissions versus gauges, etc.)
2. Boost emissions moderately (logarithmic boost curve)
3. No long lockups (14-day cooldown)
6⃣ TVL (Total Value Locked)
We’ve seen a massive surge in pool popularity as liquidity mining has been enabled.
In the past two weeks, TVL has increased from 2m to 36m!
It’s grown so quickly that Ipor Labs have increased pool caps.
The current pool cap is set to a max 20m each, $DAI, $USDC, and $USDT.
More Info: twitter.com/ipor_io/status/1622565638563659777
7⃣ Security
IPOR has gone under 7 Audits by @zokyo_io and @AckeeBlockchain.
They are an auditing firm, they have worked with some huge clients and should be considered competent.
With any competent DeFi, there will always be risks and potential vulnerabilities.
8⃣ Conclusion
IPOR is an exciting step forward with DeFi.
We are now seeing further Traditional Finance (TradFi) protocols implemented on top of the existing first-phase DeFi protocols that can bring vast value.
The team is very well experienced, and the love and attention put into this project reflect the performance over the past months.
I genuinely believe in the future; we will refer to IPOR as the heartbeat of DeFi due to the public good it serves.
9⃣ Socials and Additional Resources
🔹 Website: ipor.io
🔹 App: app.ipor.io/swaps/usdt
🔹 Blog: blog.ipor.io/
🔹 Notion: ipor-labs.notion.site/e592feae2660418a90c35434849f0c0b?v=d35d84b479204c26bc1bb30d2b8ace4a
🔹 Blog: blog.ipor.io/
🔹 Docs: docs.ipor.io/ipor-faq/about-the-ipor-protocol
🔹 Twitter: @ipor_io
🔹 Telegram: t.me/IPOR_official_broadcast
🔹 GitHub: github.com/IPOR-Labs
🔹 Discord: discord.com/invite/bSKzq6UMJ3
🔹 $IPOR Token Univ2: dexscreener.com/ethereum/0x4acfb448c585f6e1e8f2ab2bd415f399bd1b8e09
🔹 $IPOR Token Univ3: dexscreener.com/ethereum/0x4acfb448c585f6e1e8f2ab2bd415f399bd1b8e09
Tagging fellow creators in the $IPOR ecosystem;
@FlagshipFYI
@0xTindorr
@arndxt_xo
@DegenSensei
@marco_112358
@Morpho_Intern
@0xPaolozzi
@Chinchillah_
@0xPaolozzi
@CryptoGunner
@FrogsAnon
@theguywhowrite
@0xKepler
@ipor_intern