Let’s face it, the Binance Smart Chain has seen such an explosion of Dapps over the last 6 months that it has been hard to keep up. You have all of these DeFi platforms offering various yields, but you won’t participate in them because you know that eventually, another DeFi platform will eventually pop up offering even higher yields. This is not even mentioning that there are projects that are strictly DEXs, while others are lending platforms, while even others are high yield farms. So it is no wonder that you feel stuck on which one to invest your hard-in cash in. But what if I were to tell you that there is a relatively new DeFi protocol that not only offers very high yields but was able to combine the best of all three worlds into one? Not only that, it acts as an aggregator, leveraging high yield from other projects that are trusted and well-known in the BSC.
So, what platform is this? That would be Planet Finance, one of the newest DeFi platforms to have emerged. And yet, it has been practically unknown. This Planet Finance review article could change that. We will dive down into the mechanics of this rising new DeFi protocol by examining its features, its robust tokenomics, the team behind it, and if it really does have the potential to send its native token, AQUA, not to the moon but completely out of the entire Solar System.
What is Planet Finance?
Planet Finance is many things. It was first conceptualized back in 2020 in an effort to create a product combining the best elements & opportunities of decentralized finance into one place—the platform when live at the beginning of May 2021.
No KYC Requirement
Every centralized exchange we know about follows the requirements for Know Your Customer and Anti-Money Laundering (KYC/AML), which removes users’ privacies by requiring them to provide extensive documentation to prove their identity.
Planet Finance is a decentralized platform with no regulatory authority. Users from anywhere in the world are able to transact with privacy on it.
Aggregator for Yield Farming
Its main drive is to offer high yields with low risk. To accomplish this, it acts as an aggregator by offering users a diverse array of other DeFi Dapps that they pull yields from, with only the top-quality projects chosen. Currently, the platform leverages PancakeSwap and 4Belt to obtain those high yields.
The team behind this project has divided this high yield farming into two sections; stablecoin and volatile cryptocurrencies. Users who wish to deposit certain stable coins can do so on Bluet Planet.
Yields tend to be higher for For AQUA holding pairings. In order to earn these high yields, you will need to click on the arrow pointing downward on the right side. There, you will see a little button that says, ‘Get LP Tokens.’ If you are trying to provide liquidity for AQUA-BNB, once you press that button, it will take you to PancakeSwap, where you will need to provide liquidity. Once you have done so, you will receive LP tokens in turn. You hop on back to the Blue Planet and deposit those LP tokens, and That’s it! You will start earning AQUA tokens immediately.
It needs to be noted that each vault has its own fee structure. For example, for the AQUA-BNB pairing, uses only need to pay a very small withdrawal fee of 0.1%. For the 4BELT vault, users will need to pay a 0.1% deposit fee, 0.50% auto-compounding fee, 1% platform fee, and a 1% buyback & burn fee.
For cryptocurrencies such as BTC, ETH, CAKE, and others, there is the Red Planet specifically for that.
Depositing LP tokens is similar on Blue Planet, and priority is given to AQUA pairings and deposits. Nevertheless, you can still earn a substantial amount of AQUA if you deposit your ETH, BNB, or BTC.
It should be noted that as more vaults becoming available and more users deposit into these vaults, the yields on the vaults will lessen over time on both Blue and Red planet. Because there are only 500 AQUA being mined per day, there is only so much of the token to distribute.
On June 11, the team behind Planet Finance announced their very own DEX. Previously, the liquidity pool for AQUA has been on PancakeSwap, specifically in the AQUA-BNB pool. But now, users can swap their BNB or CAKE token for some AQUA. The old liquidity pool on PCS will still exist but will no longer be incentivized by the protocol from the AQUA generated each day. The AQUA rewards allocated to that pool will now be allocated to the new AQUA-BNB liquidity pool on Planet Finance.
According to their Medium article, any user will be able to create their own liquidity pools on the Planet Finance swap and list their own tokens.
From day 1, the team behind Planet Finance have listened closely to the many questions and concerns of the growing community surrounding it and have made the necessary adjustment. But it wasn’t until July 11 when the voting system became live, allowing any AQUA holder to vote on proposals. Already three proposals have been created.
According to their Medium article, to create a proposal, a user must hold at least 1 AQUA, but any AQUA denomination can be used to vote on a proposal. All proposals must be active for at least 1 week in order to give voters time to respond. At least 10% of AQUA’s circulating supply must vote on the proposal in order for it to be considered valid. Finally, a proposal needs at least 69% of the total votes in order for it to pass.
Currently, the type of things that can be proposed and voted on are:
However, the proposing subjects will not be limited to only these categories. As the project and community continue to grow, other ideas and proposals will be thought of and voted on.
Planet Finance has several upcoming exciting features and services that could soon make it to be a highly popular Dapp to use.
There is a third upcoming planet called Uranus. Similar to the Blue and Red Planet, this new planet will house all other crypto tokens that have fewer use cases or are not considered to be valuable. These are the meme coins, or more popularly known as shitcoins. It is expected for this feature to be up and running within the next week or two.
However, Planet Finance is striving to be much more than a simple aggregator Dapp. In addition, it will also be offering two other features, namely a lending and borrowing platform called Green Planet and an Insurance platform called the Purple Planet.
Lending on the Green Planet enables users to put their crypto to work. While borrowers are borrowing their crypto, they're paying rolling interest. This interest is paid directly to the lender for the privilege of using their funds.
More savvy defi users use lending as part of their strategy to both de-risk and leverage up.
Rolling interest is an absolute game-changer for the user experience of lending. Historically payments to lenders were made monthly, quarterly, yearly, and sometimes not at all. It's a slow grind and very uneventful.
On Planet Finance, yields earned from lending funds come in, in real-time.
Additionally, lending out your funds on the Green Planet increases your supply balance. This supply balance is your collateral. Having collateral on Green Planet allows you to borrow cryptocurrency on the open market. When you borrow crypto, the amount you borrowed and need to payback to free up your collateral will slowly increase at the current APY you're paying to borrow the funds.
Another exciting feature is their upcoming NFT marketplace, named the Pink Planet. By using AQUA, users will be able to create and buy NFTs. A percentage of the NFT sales and author fees will be used to burn more AQUA tokens.
Other Upcoming Features
If you look into their Interplanetary Starmap, you will see another upcoming planet called Purple Planet. This one will house an insurance protocol for your crypto.
Another fool future feature will be the ability to mint their own stablecoins by using AQUA. How will this possible, and on which planet you will be able to do it, remains to be confirmed.
A lottery is also in the works where a large percentage of AQUA used to buy tickets will be burned.
There will also be a merchandise store, as well as a Command Statistic Station that will allow users to view everything happening on Planet Finance.
Is Planet Finance Safe?
At the beginning of July 2021, Planet Finance completed its first audit with Halborn.
For just a brief overview, only 2 issues were discovered by Halborn, of which the team had updated.
Although auditing does provide some assurance, it needs to remain clear that it is by no means a guarantee. Bugs and even hacking attempts can still occur.
In addition, the team, despite being anonymous, has thus far been transparent about their intentions and has listened to the community’s questions and concerns. While it is not a guarantee that they will not attempt a rug pull, by this stage, it seems highly unlikely, especially since their code is open-sourced, allowing anyone to view it and scan for any bugs or concerns.
Planet Finance was founded by an anonymous team spanning across 4 countries that have been in blockchain since 2012.
Now we get to one of its most interesting parts; its tokenomics. Planet Finance shares a lot of similarities with Yearn Finance in this respect. Like its Ethereum counterpart, its native token, AQUA, had a very fair distribution launch. No AQUA tokens were pre-mined and given to any members of the Team or early investors. There no pre-sale, no favorites unless you were an early investor.
This means that any early investor, as well as the team, had to deposit their own crypto in order to earn AQUA.
The protocol is set only distribute only 500 AQUA tokens per day for 200 days only. This means that only 0.01736 AQUA will be produced per block every 3 seconds. After 200 days, 100,000 AQUA tokens will have been mined. Yes, you read that right. Only 100,000 AQUA tokens will ever be produced.
However, that is not the interesting part. The AQUA token is deflationary! According to their Docs, 40% of all profits taken by the platform, including from lottery ticket sales, NFT sales, and from AQUA’s exchange trade fees, will be used to buy $AQUA and destroy it. This will continue to make $AQUA more scarce over time and hence, driving up its price.
The burning of AQUA has already started, meaning that the number of tokens being mined will never reach 100,000. Currently, only about 99,939.243 will ever be mined after 200 days.
Okay, that is all nice and good, but what is the token used for? Well, as mentioned before, it is a governance token. Any user holding AQUA will be eligible to vote on proposals. To create a proposal, users must hold at least 1 AQUA token.
Secondly, any users holding AQUA will also be able to receive a part of the revenue generated by the platform in proportion to the amount of AQUA they hold. For example, if the platform generated $50,000 in revenue and if you hold 50,000 AQUA, you will receive $25,000.
Below are a few tutorial videos that not only provide further information about the platform but also a guide on how to participate and deposit your crypto into their vaults.
Planet Finance Review – Conclusion
Planet Finance seems to be well on its way to becoming one of the top DeFi platforms on BSC. It has an ambition roadmap, a dedicated team with a rapidly growing community of followers. It has robust tokenomics with very low risk, high yields with various current or upcoming features and services. You can farm high yields, lend out your crypto, create and sell your NFT in a marketplace, get insurance for your crypto, essentially all you could ever want in a platform Planet Finance will have.
However, despite all the excitement, it doesn’t come without risk. It is a relatively new project with no guarantees it will succeed. The team and community will have to do some serious marketing in order to entice other users to use the platform. That is easier said than done considering the explosion of other DeFi Dapps on the Binance Smart Chain, Ethereum, Solana, Huobi Global, Terra, among many others. Even while more and more people are entering the DeFi space, there is still a limited number of people, and with the crypto space exploding with activity, Planet Finance could find itself becoming overwhelmed by the amount of competition. But then again, it is precisely for that very reason why Planet Finance could very well succeed.
Planet Finance Review
- Ease of Use
- Robust tokenomics
- Offers good high yields
- The team is constantly upgrading, developing
- More features are being added to the platform
- New project; unproven
- Trying to deposit LP tokens can be a bit confusing
- Team is anonymous
- Faces strong competition from other DeFi platforms