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 $ETH 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 crypto using Preon has the following benefits:

  • Earning on your crypto as you spend it

  • Allows for leveraging

  • Allows for staking in our Stability Pool

  • Complete decentralization

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

Using $STAR is a decentralized way to experience DeFi. In the future, Preon as a protocol will be democratized, allowing governance holders to control policy within the protocol.

Minting has no interest, only one-time fees which are up to 0.5% on depositing, minting & redemption for loans lasting between 7 days & 6 months. The fees are distributed between the protocol & governance holders.

Thanks to Layer Zero, $STAR can be minted on 20 chains & counting with collateral on multiple chains.

Preon as a yield farm

To incentivize $STAR utility, Preon is utilizing a mix of ve(3,3) & FOO.

$STAR users can provide liquidity to any $STAR pair on Preon's Farm section to earn $oPREON, an option call reward that can be redeemed for a discounted value in $ETH or zapped into vePREON, the de-facto governance token of Preon.

Each week vePREON holders direct emissions to farms via the Preon Gauge. Rewards are then streamed according to the vote epoch.

As well as being able to direct emissions, vePREON holders can boost their rewards within farms using their governance position & earn protocol fees and/or bribes for their epoch votes.

Preon Tokens

vePREON is a receipt token for locking $PREON liquidity in Balancer (80PREON-20WETH BPT) for 1 week - 1 year.

BPT lockers are rewarded with the following:

  • Protocol fees when minting $STAR

  • Bribes (when voting for a bribed pool)

  • Boosted yields on their liquidity positions

oPREON is the de-facto emission token of Preon's Farms. It is illiquid on its own, but can be locked for vePREON or redeemed for $ETH at a discount.

The earned $ETH is used for the protocol in the form of incentives for vePREON holders.

Preon as a DAO

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

  • Introduce liquidity pairs to the gauge

  • Direct emissions to liquidity pairs in the Preon Gauge

  • Introduce collateral options within the CDP

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.

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