Abstract

DeFi as a concept is to be able to offer almost all the financial services available with traditional centralized institutions, typically banks, but on the blockchain. Whatever traditional services financial institutions provide can be expected to be offered through DeFi.

Decentralized finance have gained notable traction in recent years with proof-of-stake (PoS) consensus mechanisms and the issuance of Non-Fungible Tokens (NFT’s). DeFi include smart contracts, protocols, decentralize applications, digital currencies, and more which provides greater security, privacy and transparency.

PoS consensus, is beneficial in many respects. For one thing, it does not require the same level of computing power as proof-of-work consensus in order to operate, and as such, it is more energy efficient. Additionally, PoS consensus has been shown to foster many powerful incentives for liquidity providers (LP’s), such as distributing transaction fees to LP’s and rewarding them with additional currency.

Decentralized, tech-based finance is inevitable as financial capital and technology become increasingly intertwined, and as more people across the world access capital markets for the first time through technology, digital assets will become a standard way of preserving, exchanging, and accumulating wealth.

Thus, the question that Deverything seeks to answer is : how can PoS consensus mechanisms be harnessed to make passive income in the defi ecosystem while building decentralization centric application? In this paper, we will lay out in detail the approach we plans to take towards answering this question. This approach, in a word, involves implementing specific rules for staking that will promote users to stake for as long as possible to benefit from Deverything ecosystem.