Parrot Protocol 50,000,000 PRT Initial Incentive Drop: WAGMI
Since launching on Solana mainnet back in May, the Parrot team has been hard at work improving the protocol. In the span of a month, the protocol has made important strides forward:
- Collaborated with Mercurial and Saber to enable conversion between PAI, USDC, and USDT. Liquidity is deep enough that you can swap PAI to USDC with minimal slippage and fees.
- Built an efficient liquidation engine to maintain the solvency of the PAI monetary system.
- Reached $1M in $PAI supply.
- Grew an incredibly supportive community to support the protocol.
Parrot Protocol wouldn’t be where it is today without the help of you crazy, beautiful, and lovely parrots in the pandemonium!
Incentives for Growth
To bolster the protocol, an important next step is to incentivize protocol contributors with $PRT, Parrot’s governance token.
There are two major areas to incentivize in the first stage of the Parrot Incentive Program:
- Grow the supply of $PAI. Let’s make it yuge.
- Healthy level of $PAI trading liquidity on stable swaps. Let’s make the peg stronk.
Growing the supply and liquidity of PAI in tandem paves the way for PAI’s adoption in DeFi. Sufficient supply makes it worthwhile for other protocols to integrate with PAI, and having liquidity gives everyone the confidence that PAI can maintain its value stability.
(There are also incentives available for pBTC, Parrot’s synthetic BTC. A follow-up article will dive into the plan for Parrot synthetics.)
PRT Tokenomics
We have made minor changes to Parrot’s tokenomics. Here’s the final version:
Symbol: PRT
Total Supply: 21,000,000,000
- Protocol incentives: 35%
- Team & Angels: 17.5% (1–3 year lockup)
- Ecosystem & Partnerships: 20%
- Seed: 17.5% (1–3 year lockup)
- Protocol Controlled Reserve: 10%
The Protocol Controlled Reserve (PCR) will be directed by the DAO to carry out market interventions in favour of the protocol. For example, the DAO may direct a portion of the PCR to act as an insurance fund to backstop any bad debt in the lending system.
Parrot Protocol will collect fees from the services it provides, use the fees to buy back PRT on the open market, and cycle back the PRT as protocol incentives. The main sources of protocol fees are:
- Stability fees collected on $PAI
- Borrow interest on the $PAI supply
- Liquidation penalties
- Borrow fees collected on the lending market
- Trading fees for the vAMM (note that the vAMM does not require LPs, so it’s possible for the protocol to capture all trading fees)
The PRT token is not live yet since we have not yet conducted our IDO. The rewards will be distributed to the community after token launch.
Parrot Hatchling Incentives
This rewards program is designed to grow the supply of $PAI, while making sure that there is a healthy basket of assets backing the value of $PAI.
Over the next 30 days:
- 15M $PRT will be rewarded to users that staked SOL to mint $PAI.
- 850K $PRT will be rewarded to users that staked USDC to mint $PAI.
- 350K $PRT will be rewarded to users that staked USDC to mint $pBTC.
[[[Update 07/17/2021
- 350K $PRT will be rewarded to users that staked USDT to mint $PAI.
]]]
Snapshots of all the vaults are taken hourly, and your $PRT rewards will be proportionate to the amount of $PAI you’ve minted.
50% of the rewards you’ve accumulated will be unlocked soon after token launch. The other 50% will be unlocked weekly over a 3-month period.
Top 10 Leaderboard Rewards
A further 1M $PRT will be distributed to champion parrots.
Over the next 30 days:
- 500K will be distributed to the top collateral providers. Note: If you deposit a non-stable asset such as $SOL, you can’t mint as much $PAI due to the higher collateral ratio requirement. However, you’ll still be able to compete for this reward even if you can’t mint as much $PAI as the stable vault users.
- 500K will be distributed to the top $PAI minters who use any of the vaults.
There will be an official leaderboard where you can check your ranking.
Parrot x Mercurial x SaberHQ Incentives
This rewards program is designed to grow the trading liquidity of $PAI versus other stablecoins and to strengthen the $PAI stable peg.
Over the next 30 days, we will incentivize Mercurial LPs:
- ~15% APY to Mercurial 3Pool LP holders (in $MER)
- 4M $PRT to Mercurial 3Pool LP holders
- 15M $PRT to Mercurial 3Pool LP holders who also staked the $PAI
O̵v̵e̵r̵ ̵t̵h̵e̵ ̵n̵e̵x̵t̵ ̵3̵0̵ ̵d̵a̵y̵s̵,̵ ̵w̵e̵ ̵w̵i̵l̵l̵ ̵i̵n̵c̵e̵n̵t̵i̵v̵i̵z̵e̵ ̵S̵a̵b̵e̵r̵ ̵L̵P̵s̵:̵
- L̵P̵s̵ ̵w̵i̵l̵l̵ ̵e̵a̵r̵n̵ ̵$̵S̵B̵R̵ ̵r̵e̵w̵a̵r̵d̵s̵ ̵f̵r̵o̵m̵ ̵S̵a̵b̵e̵r̵
- 1̵.̵5̵M̵ ̵$̵P̵R̵T̵ ̵t̵o̵ ̵S̵a̵b̵e̵r̵ ̵U̵S̵D̵C̵-̵P̵A̵I̵ ̵L̵P̵ ̵h̵o̵l̵d̵e̵r̵s̵
- 2̵5̵0̵K̵ ̵$̵P̵R̵T̵ ̵t̵o̵ ̵S̵a̵b̵e̵r̵ ̵r̵e̵n̵B̵T̵C̵-̵p̵B̵T̵C̵ ̵L̵P̵ ̵h̵o̵l̵d̵e̵r̵s̵
[[[Update 07/17/2021
To better align with SaberHQ’s incentive program, we have made a large increase to the original rewards program. Over the next 15 days, we will incentivize Saber LPs:
- LPs will earn $SBR rewards from Saber
- 7.5M $PRT to Saber USDC-PAI LP holders
- 1.25M $PRT to Saber renBTC-pBTC LP holders
]]]
Snapshots of all the LP positions are taken on an hourly basis, and the $PRT rewards will be proportional to the amount of $PAI staked in the Mercurial and Saber LP pools.
50% of the rewards you’ve accumulated will be unlocked soon after token launch. The other 50% will be unlocked weekly over a 3-month period.
The Party Is Early
The team is extremely grateful and humbled by the incredible amount of trust the community has put in us. The primary goal of this incentives program is to serve as the first major step in putting the future of the Parrot Protocol into the hands of our community members.
As always, the Parrot would like to caution you not to YOLO. Be careful and only contribute an amount that you can afford to risk. There will be plenty of opportunities to earn $PRT in the future.
Join The Parrot Party; it’s never too late!
Twitter: https://twitter.com/gopartyparrot
Telegram: http://t.me/gopartyparrot
Discord: https://discord.gg/gopartyparrot
