Pinecone Finance: Multi-Strategy Single Asset Farming in 2021

Pinecone Finance seeks to help users diversify their yield farming investments in order to maximize their returns while minimizing risk.

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BSCNews
on
September 21, 2021
Category:
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About Pinecone Finance

Yield Farming is a popular Decentralized Finance (DeFi) concept that allows users to stake their crypto assets to earn passive income. 

Despite its unique role, yield farmers suffer from a myriad of issues, such as the lack of sustainability, poor user experience, and most importantly, security risks - especially flash loan attacks.

To effectively solve these challenges and make yield farming more rewarding, sustainable and effortless, Pinecone Finance positions itself as a next-gen yield optimizer protocol based on Binance Smart Chain (BSC) focusing on single asset farming. 

By providing users with multiple farming strategies including unique dual-layer compounding strategy, as well as anti flash loan attack mechanisms, Pinecone Finance aims to provide DeFi users with higher returns while minimizing risks. 

Other than PCT rewards, PCT holders can also enjoy sustainable income in BNB coming from the performance fee charged from Pinecone vaults. 


Tokenomics

The total supply of PCT is 1 billion, including around 1.3 million for presale (worth 3,000 BNB). The remaining part will be released in a linear way gradually over time.

When vault users claim their profit, a 30% performance fee will be charged and distributed to PCT holders in BNB, alongside the PCT rewards they will get. 

At the same time for every 1 BNB earned through the performance fee, 4,000 PCT are minted and distributed in the following ways:    

  • 80% will be distributed to the vault users (farmers) of the protocol.
  • 10% vesting to seed investors over the entire lifecycle (linear release proportionally with minting of all tokens)
  • 10% vesting to team and advisors over the entire lifecycle (linear release proportionally with minting of all tokens)

The design of such tokenomics means that the interest of the team, early investors, PCT holders and PCT protocol users (farmers) are pretty much aligned. The higher the Total Value Locked (TVL), the higher the profit, which generates more BNB income for holders and a corresponding high token price, forming a virtuous cycle to drive the long term growth of the ecosystem of Pinecone Finance which benefits every participant. 



Multiple Strategy Vaults

Higher return always comes with higher risk which still holds true in yield farming, so there is no single strategy satisfying the needs of all investors. That’s why Pinecone Finance designed a unique multiple farming strategy offering with different risk and return profiles. For each crypto asset it aims to provide various farming strategies for investors to choose from. Take CAKE as an example:  currently there are two Cake Vaults on Pinecone, i.e., the CAKE vault using PancakeSwap-Biswap strategy and the CAKE vault using the PancakeSwap strategy. 


CAKE(Pancakeswap-Biswap) vault

​​The CAKE yield from PancakeSwap-Biswap vault is generated through converting the CAKE profit from the PancakeSwap CAKE pool into BSW and depositing it into the BSW pool on Biswap. The final APY depends on the CAKE APR offered at Pancakeswap and the BSW APR at Biswap, as well as the live conversion rate between these two tokens. Such a strategy comes with a certain hedging mechanism: when the CAKE- BSW price appreciates, users can enjoy an increase in principal, and if CAKE price against BSW price falls, profit will increase significantly to hedge against some of the losses caused by the decline in token price.

Hence the real return may fluctuate from time to time even though it offers relatively high APY.


CAKE (Pancakeswap) Vault

The yield of the CAKE (PancakeSwap) vault is generated by depositing CAKE into PancakeSwap CAKE pool and continuously reinvesting the CAKE profit, so it will continue to generate exponential returns. The frequency of auto compounding could be up to 48 times a day depending on the TVL. Given there is no conversion between two tokens, the real return is stable despite the lower APR it might provide. 


How to Stake in Cake vaults

  • Buy CAKE on PancakeSwap
  • Go to Pinecone Finance and choose the CAKE vault you like 
  • Stake the amount of CAKE as per your preference
  • Claim the rewards anytime. Please note that there will be a 0.5% withdrawal fee charged if a withdrawal is made within 72 hours of deposit. 

The longer you stake, the more you earn with the auto compounding mechanism on Pinecone!



Protocol Security

The Pinecone protocol has been audited by Peckshied and Beosin, and an audit by Certik is in progress. The founder of the project, Jin, has fully publicized his identity from the very beginning to mitigate the risk of rugging for Pinecone.

The protocol also has a unique anti flash loan mechanism including the following mechanism:

•   It restricts direct access from 3rd party smart contracts unless they pass Pinecone’s due-diligence process including stringent security checks.

•   There is a max transfer limit per block to ensure no flash loan attackers can profit from dumping large amounts of PCT within one block.


Squirrel Ambassador Program

To fully unleash the potential of the community and help users participate in a fair and transparent manner, Pinecone has launched the Squirrel Ambassador Program, offering Pinecone lovers and influencers extra 3% of the profit earned by their invited friends for life! 

Pinecone lovers who can provide invaluable resources are welcomed to apply to be Squirrel Ambassadors!


The Roadmap

As a yield aggregator, Pinecone Finance will always focus on our core business, which is to help users to earn passive income in a safe, easy and sustainable way. Moving forward, we will integrate with financial Non-Fungible Tokens (NFTs) and GameFi principles to make yield farming even more rewarding & more fun. For example, we will have NFTs designed with different levels of “earning boosting score”, entitling users to receive higher APY in a more gamified FASHION.

To learn more about Pinecone Finance, visit the following links:

Website

Twitter 

Telegram Community

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