The Buzz Around Pollen

Decentralized Finance Vs. Centralized Finance

The Rise of DeFi

For far too long, economic control has rested in the hands of a few powerful individuals whose disproportionate influence over centralized finance institutions has served to further individual interests over the masses. In a centralized financial system, customers rely on third party intermediaries in order to gain access to financial services, ultimately surrendering control to their own funds. This results in a costly, inefficient and high trust relationship that offers little benefit to the consumer.

The arrival of blockchain technology has allowed for a promising alternative in the form of decentralized finance or DeFi. DeFi is a system where financial products become available on a public decentralized blockchain network, making them open for anyone to use, rather than going through middlemen like banks or brokerages [1]. Consumers have embraced this trustless and permissionless system fueling the staggering success and expansion of DeFi. In fact, as of this year the total value locked in DeFi applications has reached over $50 billion [2] with no signs of slowing down anytime soon. This indicates that consumers are continually embracing the various offerings within the DeFi ecosystem from lending, liquidity mining to staking. However, it must be said that the cryptocurrency space remains highly volatile with assets values constantly fluctuating. The unpredictable nature of this digital landscape necessitates a flexible protocol that can navigate drastic market movements.

Pollen

The Pollen Protocol

Given the unprecedented growth of the DeFi sphere and the slew of assets currently in the market, there is a growing need for an effective portfolio management platform that maximizes yield within this ever evolving ecosystem. Pollen answers this need by being a fully decentralized asset management platform that maintains an asset pool while allowing participants to curate their own custom asset pools. It employs a governance protocol that is reputation-based with an incentivised liquidity model, allowing for full decentralization while creating a new class of yield-bearing instruments [3].

Collective Delegation

A good governance protocol not only focuses on utility but it requires participation. Aligned with this, Pollen employs a collective delegation model which provides automated collective or “hive” intelligence that simplifies participation, prevents attack vectors, and provides higher, more sustainable yields, thereby improving outcomes. Collective delegation allows governance voting power to be delegated to a pool of high performers who may be dynamically reassigned based on their voting performance using asset pool metrics and algorithms that optimize performers’ reputations [4]. Participation in the collective delegation is entirely voluntary and participants may opt out at any time. But by having this system in place, decisions are always transparent and undertaken by capable hands.

A Piece of the PAI

As mentioned above, in order to navigate an unstable digital currency landscape, protocols must have an elastic currency that shields holders from price swings, market correlation and manipulation. The Pollen Asset Index (PAI) is Pollen’s native Index token, a non-volatile asset specifically designed for use within the DeFi ecosystem. Unlike other stable coins that rely too much on USD and its link to centralized finance, Pollen will be fully backed by uncorrelated DeFi-native assets positioned to weather market storms [5].

Inside the Hive

DeFi’s continuing evolution is pushing governance to level up as well. By rethinking asset management from the ground up, reducing market risk, and creating a safe harbor for market volatility with its portfolio asset, Pollen is on a mission to redefine DeFi and make it a stronger foundation for next generation applications. Simply put, it is leading the way towards DeFi 2.0. Inspired by the Fable of the Bees [6], Pollen fully believes that cooperation and aligned incentives can build a mutually beneficial and thriving community for all.

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Chain Ridge Capital

Chain Ridge Capital

We invest in companies and protocols building the next wave of innovations in the digital space with the product-market fit real use cases.

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