Although cryptocurrencies have opened up many new possibilities, one that is presently booming is Decentralized Finance (DeFi). Many of these protocols are in high demand due to the ability to securely multiply money, but not all of them have proposals that best benefit their users.
Consider AAVE, a decentralized lending system that provides interest via its liquidity pools. While his idea is novel and appealing to many, a deeper examination reveals that more might be done to help the users.
Blizz Finance was established based on these flaws, a DeFi protocol that offers more user advantages than other well-known protocols.
Blizz Finance’s token, BLZZ, emerges as the core of the dynamics inside its ecosystem and gives the idea that makes the DeFi protocol unique compared to AAVE.
As a result, Blizz Finance’s digital currency, BLZZ, will be produced in 1,000,000,000 units, with 50% of the money earned from loans going directly to users of the protocol, both lenders and applicants. Unlike AAVE, which capitalizes all money for its own profit.
On the distribution of BLZZ, of the 1,000,000,000 units:
In addition, Blizz is already entering DeFi 2.0 by introducing an innovative liquidity mechanism that is a fundamental advantage over previous DeFi protocols. It is about the liquidity property of the protocol, which protects against the movement of whale investors, solving the current great problem of impermanent loss.
With this in mind, they created the PODL module, which since its launch distributes 50% of AVAX’s treasury incentives to this new smart contract. Any user can sell BLZZ/WAVAX LP tokens directly to the protocol for a 10% premium. All acquired LP tokens are permanently locked, preserving healthy protocol liquidity and essentially making BLZZ deflationary.
|Fees||Just take the 50%, the other half goes to the users||All 100% goes to AAVE|
Another feature is the BLZZ liquidity mining. Users may stake their assets here, and the prizes will be disbursed throughout the three months that the funds remain blocked.
The money is not unavailable, since the user has complete control over them, even if a fine system is employed for 50% of the assets.
What’s the point? The penalty imposed on customers who need to withdraw their cash will be shared among those who maintain their funds for the specified period. This encourages stakeholder commitment, rewarding those who follow the rules and penalizing those who do not.
It is important to note that everyone who participates in the Staking program with BLZZ can claim their rewards at any time, without any penalty.
Finally, there is the loan system, which allows users to use their cryptocurrency capital to fund others who need instant money in return for a guarantee and the payment of agreed-upon interest.
Whoever wants a loan must make the payment with the same asset that they sought, plus the applicable interest. While there is no fixed period for completing the required payment, anyone who accepts the obligation should be aware that extra interest may accrue and their guarantee may be liquidated.
The latter is assured by a debt-related health system in which non-compliance with the stipulated requirements raises a particular indicator, which at a given point requires the liquidation of the corresponding guarantee to remunerate the lender. This tries to provide equitable terms for all parties, without the involvement of a third party, and in a transparent manner.
As seen, Blizz Finance’s offer and the entire system linked to the BLZZ token provide very appealing conditions for interested parties, with the main goal of adequately compensating users by distributing rewards for using the platform by distributing a portion of the profits, in contrast to what DeFi protocols like AAVE do.
On top of it, all of this is decentralized, taking full use of the Avalanche network’s advantages of scalability, reliability, and minimal operational costs.
If you want to know more about Blizz Finance, the BLZZ token, as well as the products and services offered by the platform, we invite you to visit their website and its channels on social networks:
Reporter and researcher on the ecosystem of digital currencies and Blockchain technology for the DiarioBitcoin.com news portal, and recently part of the es.CryptoComes.com team under the position of Chief Editor.