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Detailed Overview

Preon as a CDP​

Preon is a lending protocol utilizing CDP mechanics to achieve 0% interest borrowing. This is achieved by minting STAR each time a deposit is collateralized within Preon.

Users deposit collateral into our Nebula Vaults & are able to mint STAR against their collateral. In the meantime, their deposit is farmed using low-risk strategies.

Collateralizing your assets using Preon has the following benefits: Earning on your assets as you leverage against them Allows for yield farming opportunities using STAR

STAR is wholly over-collateralized. There should always be more collateral backing STAR than there is STAR minted.

With the release of Preon V2, Preon as a protocol will be democratized, allowing governance holders to control policy within the protocol.

Minting has no interest. Only one-time fees are paid by users, which are variable on opening/adjusting a position (depositing, minting) for loans lasting between 7 days & 6 months, but pending loans will not be affected. Preon has a redemption fee of 0.5%. The fees are distributed between the protocol & vePREON holders.

With our LayerZero integration, STAR can be minted on over 20 networks after contracts are deployed, with collateral on multiple chains.

Preon as a yield hub​

To promote STAR utility, Preon is using unique incentivization mechanics which includes FOO (Fungible Ownership Optimization).

STAR users can deposit their STAR to the Stability Pool to earn oPREON, an option call reward that can be redeemed for a discounted value using STAR or zapped into vePREON, Preon’s governance token at a 1:1 ratio.

Preon Tokens​

vePREON is a receipt NFT for locking PREON into the protocol’s veNFT contract for a time period between 1 week to 2 years.

vePREON holders are rewarded with the following:

  • One-time borrow fee (added to borrowers debt)
  • Repayment fee
  • Performance fee on collateral yield farming
  • Liquidation profits
  • Different revenue sources provided by the protocol

oPREON is the emission token of Preon's Stability Pool. It is illiquid on its own, but can be zapped for vePREON or redeemed using STAR at a discount. The earned STAR is used for the protocol in the form of incentives for vePREON holders and is sent to the Treasury, where it is employed for various purposes.

Preon as a DAO​

Preon is built with robustness in mind. As a team, we aim to maximize decentralization. vePREON holders will have the right to:

Introduce collateral options within the CDP Vote on PIPs (Preon Improvement Proposals)

Creating a successful decentralized community is one of our main goals for Preon, which is why we have taken the steps necessary to ensure that the future of the protocol is in the hands of its users.