How Does Gro Vault and PWRD Work? | by Boss95rnd | Jan, 2022

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One of the major reasons why blockchain and cryptocurrency were created was because the creator(s) intended for more people to be financially & economically independent. Interestingly, since the introduction of the emerging technologies, more people have been able to earn even more from the technologies than their 9–5 jobs, and so it is safe to say that blockchain and crypto are achieving their purpose even though they have not been adopted as mainstream technologies that can facilitate seamless transactions.

The introduction of DeFi is causing a paradigm shift in financial investing, because people are more in control of their funds than what is acceptable in the traditional banking and finance sector. Different protocols have been created to facilitate seamless DeFi investments and transactions, but one protocol that has promising possibilities is the GRO protocol and its profitable products and services.

Two major products that the GRO protocol offers users include the following:

Vault

It is important to note that the GRO protocol is focused only on stablecoins, and that takes away the stress that comes with investing in other types of cryptocurrency, because they are volatile by default.

One of the aims of Vault is to optimize the yield obtained from stablecoins that have been leveraged. The vault makes it possible for users to access high yields from DeFi investments, and it achieves that by utilizing a portfolio that contains effective strategies that are optimized all the time.

How Does Vault work?

One of the major highlights of the Vault product is the high returns obtained from the service, and one reason why it’s that way is because the returns are leveraged with the aid of assets obtained from the PWRD service.

The GRO protocol is designed such that Vault and PWRD work together, and that invariably means that Vault yield and leverage will be higher when PWRD is more. Furthermore, if there are losses in the protocol, the Vault takes care of the losses first. Basically, the more PWRD is used, the higher the APY from the vault.

It may interest you to know that a section of the APY is gotten from the contributions of HODLers.

The protocol is stabilized, and users are protected because whenever withdrawals are made from Vault, or when PWRD is sild, a 0.5% fee is paid to the other HODLers. If the users keep their investments in the system for long periods, the more fees they’ll earn, based on the length of time that their funds are kept in the system; it means that every fee paid by those withdrawing gets distributed to every other investing user.

Users can make their deposits into Vault, and get access to 8.70% APY (not fixed). It is worth saying that 8,70% is not the limit for the APY. GRO team is looking at multiple ways of increasing it, which is currently at 9,50%.

PWRD

There are different crypto-based ways for people to earn passive income, and PWRD from the GRO protocol is one of those products that allows users to get access to DeFi investments with high yields. PWRD takes earning passive income several notches higher by providing users with a portfolio of strategies that is automated. Furthermore, users can have their investments knowing that the system has an effective and efficient deposit protection framework.

With the PWRD method of earning passively, users can access yields from DeFi investments without bothering about the risks that may be involved; it is important to note that PWRD internal protection capitalizes on the protection features of a risk distribution system that mitigates risks and also protects the users from possible losses.

Whenever there is a loss of capital from protocols or stablecoins, the Vault absorbs the loss first, and thus PWRD continues to generate more yield without downplaying safety and security of user investments. Protection of deposits is at the core of PWRD’s functionality.

There is more to PWRD than just another avenue for people to save and earn passive income. For instance, PWRD also functions as a stablecoin; whenever deposits are made, the PWRD stablecoin is the token used to represent the deposits. As is the case with stablecoins, holders of the PWRD token can use the coins for different purposes including as an exchange facilitator, either by transfer or by spending, and as the transactions continue, PWRD never stops earning.

Another great feature that PWRD has is that users do not have to be bothered about using 3rd party services to get their accrued PWRD yields, because the yield goes directly to the wallet of the user. Interestingly, it employs similar strategies like the Vault for yield operations, and so high yields are delivered automatically every moment.

Users can make their deposits into PWRD, and get access to deposit protection and 3.30% APY (not fixed). The same goes for PWRD, APYs are not fixed and are constantly changing.

There are three major sources of yields for DeFi systems;

Lending Income

There are different lending protocols to aid this. Funds are added to the protocols, and then interests are gotten from the investment. The lending protocols are created to enable users to deposit their funds to be held for a while in a safe manner, and the funds will be safe, no matter how volatile the markets may be. Compared to TradeFi, DeFi makes it possible for users to keep more returns.

Trading Fees

With trading fees, the users can put their funds into automated market makers that make it possible for the users to have their assets exchanged, and as they do it, the trading will generate fees that will get sent to the fund providers.

Protocol Incentives

There are different DeFi protocols out there, and many of them have been incentivized. Users will get notifications when the platforms are used. GRO protocol increases the gains for users, by gaining the tokens and having them sold in order to get profits.

The above are the ways that the GRO protocol generates yields for users through its different products, including Vault.

It may interest you to know that the assets are allocated across different protocols and stablecoins, and thus it makes the investments diversified and balanced. Furthermore, risks are mitigated so that not all the protocols or stablecoins are affected.

Useful links:

Website

Vault

PWRD

Discord

Twitter

Docs

DApp

LinkedIn

Medium

Telegram ANN

Telegram Chat



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