🛡️DeFi 1.5 - PCV

“PCV” (Protocol Controlled Liquidity) DeFi 1.5 – PCV It is no exaggeration to say that YieldFarm DeFi's success in DeFi 1.0 was driven by the Liquidity Mining system. The DeFi 1.0 service had to provide huge incentives to Liquidity Providers(LPs) to maintain the Liquidity Mining system. As a result, the protocol, in terms of its service and utility, which did not provide sufficient incentives to LPs, quickly declined. This brings out the conclusion that the YieldFarm DeFi 1.0 model, without any deflation triggering system that can offset surplus incentives, will hold fatal disadvantages of short lifespan and long-term operational difficulties.

Defiant introduced the concept of “Defi 1.5”. Link

DeFi 1.5 moved away from the Liquidity Mining system and released “PCV” (Protocol Controlled Liquidity) for long-term management and Blokfield.INC has actively been embracing this system to service RobiniaV2. Robinia is a new DeFi 1.5 (PCV) model that combines two models: a system in which the protocol can secure its own liquidity, and a system in which inflation can be controlled by burning tokens continously. RobiniaV2 aims to overcome the risks of Liquidity Mining of DeFi 1.0 and the short life span of DeFi 1.0.

What is the DeFi 1.5 model?

The DeFi 1.5 model is a new model that combines the advantages of DeFi 2.0 with the DeFi 1.0 system. In DeFi 1.5, the protocol is not responsible for all liquidity provision, but it does a lot of liquidity provision.

Therefore, users can freely participate in the liquidity supply and remove the liquidity supply at any time, but the advantage of DeFi 2.0 is that the service can be operated for a long time because the protocol is responsible for most of the liquidity supply.

How does it work?

Basically, RobiniaV2(RV2) builds and maintains its own RV2-BUSD/BNB LP from the initial IFO and deposit fee. Since more than 60% of the liquidity supply in the market is provided by the RobiniaV2 protocol, RobiniaV2 can reduce the over-incentives to maintain the Liquidity Mining system, and these incentives can be shared with RV2 holders. Most RV2-BUSD/BNB LP owned by the RobiniaV2 Protocol are not staked in RobiniaV2 and all LPs are stored in Treasury Fund.