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IV.3 The investment treasury
The investment treasury is the cornerstone of the Prometheus Protocol.
This system offers several advantages:
First, with the expansion of the various blockchains and DeFi protocols, it becomes very difficult for a lambda user to seize the best opportunities, reserved for a certain elite. For example on the opportunities of ICO platforms.
In order to have a larger allocation in raising funds for the development of a crypto project, it is necessary to have a quantity of tokens that total an astronomical cost.
This results in whales and institutional players having the majority of the ICO allocations and therefore the profits.
With the Prometheus investment treasury, we will also be able to participate in these ICOs and compete with these whales and institutional players who use the average user to make exit-liquidity.
Secondly, many interesting projects are currently on the Ethereum blockchain. This blockchain is known for several reasons, including its very high transaction fees. These same transaction fees make it unprofitable for the vast majority of users to invest in any Ethereum-based protocol.
A theoretical example with StrongBlock (worth $507 as of 01/21/2022):
If you have just enough money to buy a node (or even two), you can get $1,407 per month (or 2.7 $STRONG).
The problem is that you will probably have to spend:
=> $100 fee to create your node;
=> $100 fee to claim your rewards;
=> $100 fee to swap your $STRONG into USDT;
=> $100 to send your stables on a CEX.
So you go from $1,407 to $1,000. This means that you will lose 28% of your ROI just because of the fees.
And this simulation is based on a constant $STRONG price compared to your purchase cost. Therefore, if the price of $STRONG decreases between the time you purchase the token and the time you claim your rewards, the ROI decrease will be more significant.
Now imagine that we use the Prometheus investment treasury to buy 50 $STRONG nodes...
This would net us about $70,335 gross per month (on a single monthly claim basis).
Here is what we will pay in fees:
=> 50 * $100 to create the 50 nodes;
=> $100 to claim the rewards;
=> $100 to swap the $STRONG to USDT;
=> $100 to bridge the USDT to the BSC in order to buyback the $PHI.
That is a total of $5300 of fees in Ethereum.
Reported on the $70,335 of gross profit, this represents only 7.53% of fees reported on the gross profit for the first month only!
By pooling our investments, we increase their ROI on a less accessible blockchain.
This is the vision of the Prometheus Project, to make DeFi accessible to all and allow ordinary users to fight on equal terms with the whales.
Last modified 1yr ago