Absorber — a new and innovative DeFi protocol
Decentralized Finance has taken the world by a storm with over $13 billion dollars of total value locked (TVL). More shockingly, however, is that over $200 million dollars has been hacked/stolen from DeFi projects in 2020. While some of these things can be attributed to bugs/exploits, as much as 50% can be attributed to rugs, or the act of pulling out the entire value of the said contract because the owner continues to hold control over the smart contract. Let us say this clearly: such ownership is still centralized in the same way that a bank can freeze your funds.
There are other problems that DeFi faces, too. First, one effectively gives up control of funds in order to receive a certain token by staking. This type of staking is highly dangerous and is the same as giving one’s private keys up which can be stolen at any time. Secondly, besides the ever-increasing gas costs on the Ethereum network ($9.75 in gas fees to claim your rewards, anyone?), yield farming projects are often hyper-inflationary and the token value almost always approaches zero after some period of time. Thirdly, by the time one unstakes, impermanent loss is a guaranteed experience. Simply put, what you put in is worth nowhere close to what you’re about to get out.
Absorber — an innovative and experimental DeFi protocol
The Absorber protocol is here to change ALL of that.
What makes the Absorber protocol different is that it’s a solution to all of the problems mentioned above. Here’s how:
1. Because the protocol does not use any staking contracts, there is no potential for it to be bugged or exploited.
2. The protocol does not allow anyone — even its owner — to send any of the smart contract’s tokens out because the function simply doesn’t exist.
3. The Absorber is meant to be fully and truly decentralized with the “keys” (ownership) being burned so that it is impossible to rug.
4. The protocol’s staking is like $CORE’s but without the need to stake anything anywhere to earn rewards.
5. The protocol automatically distributes rewards to you without your need to pay any gas fees to claim them.
6. With the Absorber, there’s no impermanent loss because you don’t need to stake two different tokens that can fluctuate in price relative to each other.
6. The Absorber is deflationary with an absorption mechanism that gives it an ever-increasing price floor while removing tokens from the circulating supply. This means the perpetually rising price floor will always support your tokens’ value.
You probably want to know how it all works then. There are three main pieces to this puzzle. The (re)allocation function of the contract. Why “re” allocation?
When you buy, sell, and hold $ABS, several things happen. Let’s break this down.
- A buy, sell, or transfer incurs an absorption of 2%, and the entire portion of this is re-allocated to every holder (“the yield”). (This will be possible to change later according to the community’s will. It’s like an airdrop, but it’s not because it costs NO GAS for you to collect — quite literally, it just appears as an increase on your balance. That means by holding $ABS, you’re able to passively collect the yield.
- On top of the previous point, each buy/sell/transfer goes through an “automatic liquidity generation” event, an absorption of 8% (changeable later according to the community’s will). This makes passive yield farming sustainable, creates a price floor, makes the ABS Protocol deflationary.
If you’re curious, here’s a simple explanation of the last point: the Absorber harvests the Ethereum and $ABS, converts them to a liquidity pool token, and permanently locks it into itself. Once in the contract, the LP token can never be moved, making the absorbed liquidity a permanently locked feature of the contract. This entire process ends on a sell transaction with the tokens being harvested on every buy and any transfer transaction.
But wait, there’s more!
While many think selling off a cryptocurrency is a terrible sin, we have some bright news for you: when the smart contract transacts, it, too, is subject to the first absorption mechanic of 2% (as of this writing). And when you sell the token yourself, you’ll notice that even your own sell transactions are not immune from rewards!
Should the community feel that this is awesome, we’ve gone ahead to the next level with “damn awesome” — an offset to make it “double deflationary.” Enter: Absorber’s Core.
What is Absorber’s Core, you may ask?
It’s the vortex that forever takes a percentage of the 2%, the “allocative” absorption that we mentioned in the beginning. Because re-allocation of transactions depends on the weight of the holder, the “gravity” of Absorber’s Core (i.e., how many $ABS are in there) decides the rate of deflation of the supply. (The community will be able to decide & change the percentage later.)
Final words
With all that being said, you probably wonder how the rates will get changed. We have the answer to that: the ABS DAO. After the launch of the Absorber, we will work on the DAO, the main roadmap item. This will bring our true vision of decentralization to the protocol and DeFi itself with the DAO being the governing body of every single function of the protocol. This will allow the community of trader-farmers to decide how the Absorber should function, even allowing other projects to integrate the protocol into their frameworks, should they want that.
Launch Details
Total supply of $ABS: 700,000
“Absorber Creation Event” (liquidity presale): 279,200
Uniswap listing: 157,275, listed at 15% above presale
Burn on listing: 122,525
Team tokens: 70,000 vested over 3+ months
Absorber’s Core “gravity”: 28,000 sent to 0x0* address (off at launch)
Community-owned tokens: 28,000 with a 3.5 month lock on them
Event/marketing: 15,000 vested over (4 weeks) with 3,500 avail. upfront
Links
Telegram:https://t.me/AbsorberProtocol
Twitter:https://twitter.com/AbsorberFinance
Website:https://absorber.finance/
