19 May 2021 Anthony Lehrman
SafeComet – A New Way To Earn On Decentralized Finance
The decentralized finance (DeFi) ecosystem saw its fast bloom in the summer and autumn of 2020 with projects like Uniswap, Sushiswap, and Aave putting immense stress on the Ethereum blockchain, as these projects use it as a base for their operations.
Nowadays, with the introduction of Binance’s Smart Chain and its capabilities, the world of decentralized finance saw a new trend arising – self-burning automatic liquidity pool protocols like SafeComet.
SafeComet is a BSC-powered automatic liquidity pool protocol, designed to alleviate some of the problems with current DeFi protocols, such as fairer reward amount allocation, as well as retaining holders by introducing a reflect mechanism.
Static staking rewards mean that the amount of SafeComet tokens, distributed to holders would only depend on their current toking holdings, eliminating APY averaging. The team behind SafeComet believes that new investors are being sucked into the high-APY liquidity pool farming scenario, but earlier adopters, which have higher staking rewards, quickly overtake them.
Another misconception with current DeFi liquidity providers is that the protocol’s native token almost always goes parabolic, with a strong bubble-like client and fund gathering stage, quickly followed by a price burst, which causes a high degree of volatility.
By introducing a 5% static reward fee, the mechanism behind SafeComet’s rewards system encourages holders to hang onto their tokens to garner higher kickbacks. Those kick-backs are based upon a percentage carried out and dependent upon the total tokens held by the owner, meaning that the higher the staked amount, the larger the reward will be.
SafeComet also utilizes manual burn mechanisms, which bolster community engagement. By deploying and marketing burning events, SafeComet grants rewards for the long-term holders. To further make its token price attractive, SafeComet already performed an 89.3004% token burn. From a total supply of one quadrillion SafeComet tokens, 893,003,908,522,412.455851163 are already locked into a dead address, which emphasizes the scarcity effect of the token.
The main feature of the protocol, however, is the Automatic Liquidity Pool. The tool acts as a two-fold beneficial implementation for holders. The mechanism includes sucking SafeComet tokens from both buyers and sellers and creates a solid price floor. A penalty mechanism acts as an arbitrage for secure token volumes. The idea behind the automatic liquidity pool is to minimize volatility when large-scale investors join the protocol, which is observed in current DeFi reflection tokens.
SafeComet’s fee for any given transaction is fixed at 10% with 5% going directly to token holders, while the rest of the 5% is split evenly between Binance Coin (BNB) buying and pairing SafeComet tokens to BNB on PancakeSwap.
The platform did most of its research and development in 2021. In just under six months, the platform managed to get itself listed on some of the biggest exchanges and data aggregators like PancakeSwap, CoinGecko, and CoinMarketCap. Listing on other exchanges would continue as the roadmap for the project evolves over time.Press Releases rewards token binance coin bnb coinmarketcap Defi Decentralized Finance Uniswap Aave Sushiswap Binance Smart Chain BSC Pancakeswap SafeComet