GRO PROTOCOL – Making DeFi User Friendly with EPNS.

In today’s era, everyone is searching for good opportunities to earn good money on their savings or extra income. As the traditional market fell drastically during the pandemic, the opportunity to earn in a traditional market was not an option but during that period the DeFi ecosystem came like a breath of fresh air for investors providing them with higher returns and projects that could be accessed from anywhere at any time.

Besides the market situation during the pandemic, traditional systems do not provide investors with extremely higher returns, on the contrary, the crypto market provides investors with potentially higher returns. Even then that is not the ideal solution for investors as the crypto market is considered volatile and highly speculative. But the world of Decentralized Finance (DeFi) brought a solution for that, catering to the needs of investors to earn higher yields in a less volatile environment, unlike the crypto market.

Yet again, not all investors could participate in DeFi as it is a complex space that is hard to navigate thus excluding investors who are risk-averse and fairly new to the crypto or DeFi world.

To provide a solution for that Gro Protocol came into the picture. The protocol is creating user-friendly finance products that will cater to the needs of risk-averse investors and help them transition easily to the Decentralized Finance ecosystem.

What is the GRO Protocol?

Gro is a stablecoin yield aggregator protocol that manages the exposure to risk and optimizes yield through tranching.

Trancing is a french word meaning ‘Slice’ or ‘Portion’ and in finance, it is used to describe segments that are created from a pool of securities, usually debt instruments, that are sliced on the basis of the degree of risk, different maturities, yields or other features to make it marketable to different investors depending on the needs of the investors.

Gro Protocol’s mission is to equip users with tools that empower people to create and share wealth through traditional and decentralized finance markets.

The protocol has two products that were built on it viz. PWRD stablecoin with deposit protection and yield, and Vault with leveraged stablecoin yields.

Before we get into the products let’s understand how does the protocol work?

Through continuous optimization of a range of market-neutral yield strategies that include trading fees from Automated Market Makers, lending income, and protocol incentive farming the protocol is able to deliver the best DeFi yield.

But the highlight of the protocol that makes Gro unique is its Gro Risk Balancer.

The Risk Balancer tranches risk by automatically rebalancing a portfolio of assets on the basis of the stablecoin risks and smart contracts. This technological innovation is the spine of the Gro protocol through which the protocol is powered and its products PWRD stablecoin and Vault are enabled.

A systematic view that gives a clear picture of the stablecoin exposure throughout layers of nested protocols i.e, money legos interacting with each other and protocols are provided by the Risk Balancer model.

Money legos are tech stacks that enable different applications on different Blockchains to fit into other projects. For example, you can Deposit ether (ETH) into MakerDAO, receive the stablecoin dai (DAI) and then lend it on Compound to a trader in order to earn the network governance token COMP.

What are the Products of Gro Protocol?

PWRD Stablecoin

PWRD is a low-risk savings product as it offers built-in yield and deposit protection while being fully backed by three major stablecoins- DAI, USDC, and USDT. PWRD is also protected against any problem or volatility caused by any of the stablecoins.

The Gro Risk Balancer tranches risk by spreading them across the three stablecoins and on top of that, the protocol also offers Deposit Protection as part of the risk tranching tool wherein any loss of capital from yield strategies or stablecoins is first absorbed by the Vault.

The Curve protocol is used as a price oracle for exchanging PWRD which helps in responsive valuation of stablecoins and offers a fair exchange rate. As the second line of defense, the Chainlink protocol is used to sense-check prices allowing PWRD to remain closer to the USD peg.

Hodlers of PWRD generate yields that are accrued through a rebasing mechanism as additional tokens directly into the user’s wallets, without the need for any staking actions.

VAULT

Vault is created in such a way that it makes it the highest-yield stablecoin vault on the market. It is also called Gro Vault Token (GVT).

Gro Vault Token is paired with PWRD stablecoins i.e, PWRD users effectively purchase deposit protection from the GVT hodlers on a profit-sharing mechanism. The market failure is first absorbed by the Vault hodlers thus providing deposit protection to PWRD hodlers but in this set-up, the GVT hodlers also gain a higher percentage of yields.

What is the Governance token of Gro?

GRO is the governance token of the Gro Protocol. Hodlers of GRO tokens participate in the changes and in shaping the future of the Gro Protocol.

The GRO token is earned through airdrops, liquidity mining, and vesting bonuses.

Collaboration between Gro and EPNS

Gro protocol has made it easier for risk-averse investors to participate in DeFi and benefit from the risk and yield tranching mechanism while also providing the risk-takers the opportunity to earn high-yielding returns through a balanced pairing between the PWRD and Vault hodlers.

To rake in the opportunity and benefit provided by the two products of the Gro protocol and to actively participate in the governance through earning the GRO tokens there should be a robust and seamless communication channel between the Gro platform and the users of the Gro Protocol.

Through this collaboration, the users of the Gro protocol will receive push notifications in real-time directly in their linked digital wallets which will make it easier for the users to stay updated and engaged with the Gro Platform.

Users will receive push notifications like:

A. New Airdrops are available for users to claim.

B. Yield earned through PWRD.

C. Loss absorbed by Vault hodlers.

D. Airdrops that are about to expire.

E. Eligibility to earn GRO tokens through Vesting Bonus Pool.

The collaboration will immensely help the protocols in creating a user-friendly DeFi experience that will attract more users or investors through their low-risk products and seamless communication channels set in place.


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