Pumo Finance — The First Synthetic Asset Issuance Protocol in PlatON Ecosystem
Pumo Finance is a synthetic asset issuance protocol and trading platform based on the Alaya blockchain. Alaya is a business sandbox and testing field for the next-generation of financial infrastructure of PlatON, a global data asset computing infrastructure with cutting-edge privacy-preserving architecture. While Alaya and PlatON share the almost identical underlying technology. PUMO Finance is developed based on Alaya network and is also a member of PlatON ecosystem.
On Pumo, users can mint synthetic asset by means of staking the native asset. The synthetic asset has an intrinsic value ratio of 1:1 to the underlying asset, such as the stable currency PUSD (1 USDP = 1 USDT).
The core components/modules of the Pumo Finance network include：assets staking & minting, debt systems, asset swap exchange, insurance pools, and oracle. The core function process of Pumo Finance is described as follows:
1. Users can mint different types of synthetic assets by staking aETH, ATP and other native tokens. Pumo V1.0 will first support two Alaya ecosystem tokens, aETH and ATP, as native assets. At the same time, aETH and ATP assets can only mint stablecoin synthetic asset USDP in V1.0. As the PUMO project continues to evolve, it will continue to support the collateralization of new native assets and the minting of synthetic assets.
2. When the user stake their native assets to mint the synthetic assets, their debt will be generated at the same time. If the user are staking several pieces of ATP, according to different initial collateral ratio, minting 100 stablecoin synthetic assets USDP will generate 100 USDP debt at the same time.
3. After the debt is generated and the debt position is formed, the user can increase / decrease the native asset in the debt position, adjust the collateral rate of the current debt position, and control the liquidation rate; Users can also add minting synthetic assets and repay debts (reduce minting). They need to perform relevant operations according to the asset collateral rate of the current debt position and the maximum collateral rate of initial assets. Of course, adding or reducing coins will change the asset collateral rate and liquidation price of the debt position.
4. At the same time, Pumo will support the asset swap between native assets and synthetic assets. Pumo v1.0 will first support the asset swap between Alaya based stablecoin aUSDT and synthetic assets USDP. When exchanging the native assets and synthetic assets, users can find the relevant block information of the corresponding transaction via Alaya Blockchain Explore.
5. Insurance pool is also an important part of Pumo Finance. Pumo insurance pool includes several independent fund pools, including aUSDT-USDP, aETH-PETH, etc., which do not affect each other. Users can inject native assets (arc20 token) into the insurance pool to earn the income of the insurance pool (liquidation income, stabilization fee income and asset exchange fees, etc.), and also need to bear the risk of liquidation loss.
Pumo Finance’s vision is to build PlatON ecosystem synthetic asset projects based on Alaya network, and provide more diversified native asset and synthetic asset transactions for each token in PlatON ecosystem. As the PUMO project continues to evolve, it will continue to support the collateralization of new native assets and the minting of synthetic assets.
Pumo Finance
Pumo Finace is a synthetic asset issuance protocol and trading platform based on the Alaya blockchain. Users can stake their native tokens, such as aETH, ATP, etc., to mint synthetic assets.
