Before the development and subsequent launch of the first crypto network, Bitcoin, we had to rely on traditional financial institutions like banks to facilitate payments. Despite being diligent, these institutions have put in place cumbersome, stressful and impractical principles that not only delay payments, but force users to submit additional documents before certain cross-border transactions are executed.
The launch of Bitcoin, which for a few percent of $ 2 trillion crypto market, marked the first decentralized autonomous organization otherwise called DAO. Unlike traditional institutions, Bitcoin was designed to allow smooth, transparent, and efficient transfer of assets between parties, regardless of location. Although this first network cannot be classified as a true DAO, it did reflect, albeit in a small way, the possibilities of DAO.
As the name suggests, DAOs are organizations or systems that are not controlled by a central authority. Members of this organization reserve the exclusive right to vote on the community. Since the proliferation of this crypto trend, a plethora of protocols have been put in place in a similar fashion, one of them is the ISSUAA Decentralized Funding Protocol.
Configure as DAO while offering DeFi services; the ISSUAA protocol
ISSUAA, according to its website, is a next-generation decentralized financial protocol that has been designed to enable the creation of real-world asset derivatives on immutable and transparent blockchain technology.
Built like most protocols of the $ 122 billion DeFi market, this DeFi platform travels an unexplored road. First, it allows for the creation, minting and subsequently trading of derivative assets, providing investors with many investment options.
Thanks to its native token, the ISSUAA protocol token [IPT], this platform offers a unique but extremely profitable token sharing structure. Additionally, the protocol is community driven and democratically run, meaning all token holders can vote on the platform.
The ISSUAA protocol token [IPT]
As a governance token on the protocol, IPT is the platform’s native token which, as a recent press release reported, is capped at 100M.
IPT, unlike some tokens, has an internal value that continuously increases as a certain percentage of executed trades in the market is accumulated.
In addition to being a governance token, the IPT will serve as a protocol reward token for investors and liquidity providers [LP] on the network. Previously, most investors had to make additional investments to recoup their profits on competing platforms such as Mirror and Synthetix. As the aforementioned source revealed, the majority of IPTs will be given as rewards to network users. According to the press release, liquidity providers will also be rewarded to encourage them to continue providing additional liquidity to the network.
Promising a higher return, low risk farming protocol, ISSUAA will offer LPs an additional 0.25% of every trade made on its marketplace.
The incentives inherent in token holders will cause them to be honest in their votes, as erroneous or invalid results will lead to lack of trust, leading to lower fees and lower token valuation. According to the project’s white paper, 10% of the IPTs will be managed by an ISSUAA DAO and, surprisingly, users can receive grants. However, for this to happen, they would have to stake 50,000 IPTs.
Offering real-world asset derivatives on the blockchain, ISSUAA will guarantee investors the ability to purchase various asset classes. Designed to be a step ahead of its competition, this DeFi protocol and marketplace will offer energy-efficient next-generation synthetic actives with a clear competitive advantage over some of the other protocols.
By removing overcollateralisation through short and long pools, ISSUAA attempts to provide investors with a low risk liquidity provision structure.