Brokkr, The Decentralized Investment Protocol
In the last few months, we’ve been upgrading the protocol and adding more value to the $BRO token to ensure Brokkr will last for years. We took the aspects of Protocol Owned Liquidity (POL) and made them even better.
Brokkr has evolved as a product. We’re not building only the entry point to THORChain Synthetics, but building a whole investment infrastructure for DeFi. Brokkr’s goal is to simplify DeFi and make it more user friendly.
Tldr; Brokkr provides investment infrastructure via Portfolios composed of investment strategies utilizing DeFi protocols. The Portfolios are created by the DAO, and Brokkr Treasury invests its owned capital in them to generate an endless stream of revenue for the protocol. With more revenue generated, the staking rewards and guaranteed floor price of $BRO tokens will increase.
1. Simplifying DeFi through Portfolios
DeFi users know the pain of setting up complex strategies manually — it takes time, and many things can go wrong. Instead of tedious manual steps, Brokkr users simply sign the transaction, and the rest of the process is automated.
The Brokkr protocol provides the infrastructure to deploy investment portfolios composed of strategies which utilize DeFi protocols. When investing in Portfolios, assets are automatically distributed among the strategies, naturally diversifying the investment.
Portfolios can be utilized for any L1 asset thanks to THORChain.
#1 Strategy : Delta Neutral — Combination of Anchor & Mirror protocols.
The concept of Delta Neutral lies in “longing” and “shorting” one asset at the same time, resulting in a 0% increase/decrease of the asset in any market case. It leads to 0% APY from the asset investment but generating ~30% APY from using the protocols and earning MIR rewards.
All Portfolios and strategies will be accessible via an API and directly on-chain for integrations from 3rd parties. Any project looking to add easy-to-use investing options can simply integrate Brokkr in the background.
2. The Decentralized Investment Protocol with POL & POC
Brokkr protocol synergizes with any platform that will implement its portfolios and strategies (including the Brokkr platform). With more liquidity locked in the portfolios, more fees can be gathered and used to increase staking rewards.
Any value generated by the protocol is captured in the $BRO token. It is a crucial requirement to make Brokkr long-term successful. All fees generated by the protocol go to Brokkr Treasury to increase $BRO staking benefits.
The staking benefits:
• Increasing staking rewards
• $BRO price protection (“Floor price”)
• Actively investing in all Portfolios via Protocol Owned Capital
More integrations, more users, more value locked in portfolios. All leads to MORE FOR STAKERS.
The more Brokkr is used, the more Brokkr can share with stakers.
Protocol Owned Liquidity (POL)
Previously protocols had to “borrow” liquidity from users and were dependent on providing staking rewards. This often led people to farming the token and dumping it when it didn’t yield enough, basically destroying the protocol.
In the concept of Protocol Owned Liquidity, the protocol buys the liquidity from the users instead of “borrowing” it. Users exchange LP tokens for discounted protocol tokens — called Bonding. By protocol owning the liquidity, it’s guaranteed that it will stay in the pools to ensure enough depth for trading.
$BRO/UST will be available for bonding for discounted $BRO tokens.
Protocol Owned Capital (POC)
The major POL upgrade Brokkr introduces is Protocol Owned Capital (POC).
Brokkr builds its own capital that will be invested in Brokkr portfolios to generate an endless stream of revenue that will be automatically reinvested.
The owned capital will be used for:
• Increasing Floor Price
• Increasing $BRO staking rewards
Staking BRO is the simplest form of DeFi investing. Stakers are exposed through the treasury to all Brokkr Portfolios at once and receive $BRO staking rewards for that.
Stakers will always have the option to exchange BRO tokens for a calculated minimal price. It works as a safety mechanism in case of market crashes.
As the treasury is constantly generating revenue from investing in Portfolios and gathering fees, the Floor Price increases over time.
Uniting THORChain & Terra Networks
THORChain has a special meaning for us. It’s the chain we started with and it’s also very powerful. Liquidity pools, Synthetics, THORFi, all features will be accessible from Brokkr and included in Portfolios and Strategies.
But the real magic happens when we start integrating additional chains, connecting via THORChain, and automating the whole process.
Terra is the first chain we integrated. The THORChain and Terra communities are closely tied together, and within the Cosmos ecosystem (IBC connection ❤), and it has great protocols that will benefit from Brokkr’s automation.
Imagine entering Anchor with BTC. Possible through THORChain, and automated by Brokkr.
Get ready for a massive liquidity increase. By using Brokkr, Terra protocols will be accessible with any L1 coin available in THORChain pools.
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