Using a novel Proof of Premium (POP) mining model, DeFiner is a decentralized finance (DeFi) platform that offers simple, and easy-to-use borrowing and lending facilities. Powered by the native FIN token, the DeFiner governance system aims to reduce the concentration of wealth in DeFi by creating a fully decentralized, community-governed platform that rewards users fairly for their participation throughout the DeFiner ecosystem. But, what is DeFiner, and how does DeFiner work?
In this article, we’re going to dive deep into the DeFiner platform. Also, we’ll look at the native FIN token, the Proof of Premium (POP) mining model, and the DeFiner governance structure.
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What is DeFiner? - Exploring the DeFiner Decentralized Finance (DeFi) Protocol
DeFiner is a highly configurable, decentralized, and permissionless decentralized finance (DeFi) protocol. Powered by the native FIN token, DeFiner enables users to lend, borrow, and stake any token.
Furthermore, DeFiner serves as a gateway to the new digital economy. The platform gives users full ownership of their assets while utilizing their full value. Plus, DeFiner supports all types of crypto assets and provides encrypted balance transfers using zero knowledge proof traceability to protect user funds. Also, as DeFiner is decentralized, no third-party intermediaries or centralized entities can control assets used across the platform.
DeFiner provides a modest suite of highly customizable decentralized finance (DeFi) products and services. Users can passively earn interest by lending assets to other users. Plus, users can borrow digital assets by taking out an over-collateralized loan against locked-up deposits. DeFiner will soon enable users to create bespoke lending pools with configurable borrowing terms, interest rates, and more! Moreover, DeFiner will offer staking facilities enabling token holders to earn a passive income by locking up liquidity.
Secured and audited by Consensys Diligence and Trail of Bits, DeFiner is a highly secure, flexible DeFi platform. Moreover, DeFiner has a low barrier to entry, making access to DeFi services as simple as possible.
The FIN Token
The FIN token is an ERC-20 token at the heart of the DeFiner ecosystem. As the native token of the DeFiner platform, the FIN token was created to enable full decentralization. Plus, the FIN token enables communication and interoperability with the various parts of the DeFiner ecosystem.
Holders of the FIN token receive a portion of the profits collected via transaction fees on the DeFiner platform. These profits are distributed proportionally to the number of FIN tokens held. This means that the more FIN tokens you hold, the more rewards you receive.
Also, lenders and borrowers earn a portion of newly minted FIN tokens, which are distributed following a predetermined deflationary curve. The amount of FIN tokens received is calculated based on the duration and value of staked assets.
Furthermore, the FIN token will play a key role in the governance of the DeFiner ecosystem. As such, FIN token holders can vote on proposals to make changes to the protocol and influence the direction of the platform in the future.
At the time of writing, the FIN token is trading at around $0.43, with a market cap of $13.9 million, with a circulating supply of 32.1 million tokens out of a maximum total supply of 168 million tokens according to CoinGecko.
FIN Token Pre-Mine
During the initial FIN token crowdfunding, 84 million FIN tokens were allocated to early adopters, team members, and DeFiner ecosystem partners. These tokens were pre-mined and distributed proportionally to DeFiner crowdfunding supporters. The distribution saw 8.4 million FIN tokens allocated to the founding team, equating to 5% of the total supply.
A further 23.1 million FIN tokens, around 13.75% of the total supply, were allocated to the long-term development, community growth, and operations of the DeFiner organization. The same number of tokens were also allocated to early investors of the platform and to reward early capital contributions and support.
Additionally, 10.5 million FIN tokens were allocated to DeFiner’s ecosystem partners and advisors. This makes up 7.5% of the total supply. Plus, a further 16.8 million tokens were distributed via an initial coin offering (ICO), equalling 10% of the total supply.
Proof of Premium (POP)
Proof of Premium (POP) is the consensus and verification mechanism that underpins the DeFiner protocol. Consensus models such as Proof-of-Work (PoW) require computational “work” to verify transactions on a blockchain. However, POP verifies the capital commitment of lenders and borrowers. Proof of Premium (POP) was designed to “encourage lenders and borrowers to continuously contribute to the platform”. As such, participants are rewarded for their commitment.
Proof of Premium (POP) works by mining a fixed amount of FIN tokens during a particular time interval. These FIN tokens are then distributed proportionally to borrowers and lenders according to the premium produced during a given interval. As such, lenders and borrowers are miners for the DeFiner protocol and the FIN token.
POP was established to target and incentivize users during the initial FIN token distribution. Approximately 84 million FIN tokens are reserved for Proof of Premium (POP) mining. This is automated via the DeFinder smart contracts that will distribute FIN tokens to lenders and borrowers over approximately 136 years via a “decay algorithm”. The goal of this is to ensure the long-term sustainability and incentivization of the platform.
During the initial distribution of FIN tokens, miners receive one FIN token per block. Just like the Bitcoin distribution model, the number of FIN tokens entered into circulation via POP mining will be cut in half every 8.4 million blocks, or approximately every four years.
Compared to the Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus models, Proof Of Premium (POP) reduces the risks associated with the concentration of wealth. Moreover, POP provides an equal opportunity for FIN token holders to participate in consensus, further adding to the decentralization of the platform.
The Finconomy
The Finconomy is the term used to describe the tokenomics and long-term strategy of autonomous decentralization of DeFiner. This initiative aims to incentivize and reward the DeFiner community, helping to galvanize FIN token holders through community governance.
Users of the DeFiner platform can contribute to the Finconomy in several ways. Firstly, the Savings Market makes it easy to deposit FIN tokens to receive high-interest rates. Secondly, users can take out collateralized loans against their crypto assets. Also, the platform offers yield farming opportunities whereby liquidity providers can earn up to 400% APY via the FIN-LP Pool.
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DeFiner Governance
The DeFiner governance model aims to establish four types of voting rights to achieve a fully decentralized, community-governed platform. Firstly, FIN token holders are tasked with electing a board of directors to ensure the project is conducted appropriately in its early stages.
Secondly, FIN token holders can vote on the parameters of the DeFiner lending features such as loan to collateral value ratios, transaction fees, and FIN token distribution schedule. Thirdly, FIN token holders can contribute to the DeFiner governance structure by voting on the distribution of transaction fee rewards. The fourth way in which FIN token holders can vote is by deciding the Proof of Premium (POP) release and distribution schedule.
One FIN token equates to one vote, so the more FIN tokens held, the more votes a holder receives, and therefore, the more influence they have on the decision-making process of the DeFiner ecosystem. Furthermore, the DeFiner lending services utilize a “Majority Rule” decision-making model. This means that, in order for a proposal to be approved, 51% of the current circulating supply of FIN tokens is needed. However, only 20% of the current circulating supply is needed to make a proposal to change the parameters of the platform.
Why Use the DeFiner Ecosystem?
The DeFiner platform offers competitive rates on a range of decentralized finance (DeFi) services. Users of the DeFiner platform can borrow against their savings with no minimum deposits or lock-up periods. Furthermore, users can withdraw funds at any time, making for a highly flexible suite of decentralized applications (dApps).
The goal of DeFiner is to reduce volatility and risk in DeFi lending. Also, DeFiner optimizes the allocation of capital by allocating liquidity with highly customizable configurations. Further, DeFiner supports many different digital assets, making the platform suitably diverse for the modern DeFi user. Moreover, the sign-up process takes less than a minute, making it well suited to less experienced users of DeFi.
DeFiner functions as a series of smart contracts on Ethereum, the largest smart contract-enabled blockchain in the world. Because of this, DeFiner removes much of the cost and friction associated with lending and borrowing. Also, because the platform is borderless and permissionless, it provides opportunities for the unbanked to access financial instruments that have historically been unobtainable.
As such, DeFiner, as with many other DeFi platforms, has the potential to end global poverty by providing an equitable suite of financial tools and services. In the future, we can also expect to see the introduction of a DeFiner software development kit (SDK). This will help to facilitate fast, and frictionless integrations and updates as the project matures and the ecosystem expands.
What is DeFiner? - Summary
The convergence of finance and technology has brought about a new paradigm of borderless, decentralized finance (DeFi) applications that look set to disrupt the traditional finance sector. But, what is DeFiner offering that enables the platform to compete with other top DeFi platforms? Also, what is DeFiner doing to reduce the risks that come with the concentration of wealth?
DeFiner is not reinventing the wheel. Rather, by focusing on accessible, borderless borrowing and lending facilities, DeFiner provides a simple, equitable, and easy-to-use platform that lowers the barrier to entry for decentralized finance (DeFi). Thanks to the novel Proof of Premium (POP) model and the DeFiner governance structure, the platform is striving towards a fully decentralized, community-owned ecosystem of censorship-resistant and borderless decentralized applications (dApps). Moreover, the DeFiner ecosystem provides DeFi solutions that are simple, fair, and highly-customizable, and configurable.
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