Preon Soft-Launch: Rockets Fired Up
Are You Ready To Reach for the $STARs?
It’s time.
After months of strategy, building, testing, returning to the drawing board, and doing it all over again, the clock is just about to hit 0:00.
This is not a drill — it’s go time.
Preon is going live on Mainnet.
In celebration of this momentous occasion, an action-packed launch campaign has been planned by the Sphere Team that will include partner events, Zealy quests, community competitions and more! Follow us on Twitter and join the Sphere community Discord to get the full scoop:
And while this is only a soft launch, it’s still a major step on the road towards rolling out Preon fully.
Users will have a prime opportunity to try Preon out, get a feel for it, and experience some of its power and utility.
But before we dive any further, it’s worth a recap to get everyone up to speed!
What is Preon?
Preon is a revolutionary CDP lending protocol that is part of the Sphere Ecosystem’s suite of solutions disrupting the DeFi space. It also incorporates some elements of yield farming and concentrated liquidity, with unique tokenomics and synergies.
To get the full scoop on the Sphere Ecosystem’s innovative new product, we encourage you to listen to our Preon AMA recap on YouTube, courtesy of the legendary Price Time.
Now that we are up to speed, let’s get into the latest happenings.
Preon has been soft-launched, with its CDP and stablecoin arm being rolled out currently.
This is our beta phase, and with the official release, the protocol’s full utility and power will come into play.
Until then, let’s explore the current use case.
What is a CDP?
A CDP (or collateralized debt position), at its most basic level, is held when a user deposits collateral in a smart contract in order to generate stablecoins.
To illustrate this point, let’s use MakerDAO as an example.
MakerDAO provides users with the ability to deposit crypto assets, such as $ETH, into a protocol in order to borrow their stablecoin, $DAI.
That generated $DAI is basically a decentralized loan backed by the value of the deposited collateral. In order to unlock and reclaim deposited collateral, a user must pay back the $DAI generated plus any fees and/or interest.
Since $DAI is a stablecoin, its price must be stabilized through various mechanisms — for example, the value of collateral provided must always be greater than the value of $DAI borrowed.
Additionally, if the collateral value drops too low, then the protocol must liquidate or sell that collateral in order to cover the borrowed $DAI.
At their simplest core function, then…
CDPs allow users to take out loans against their own assets.
The greatest use case for this utility is when users do not wish to sell an asset, but need or want additional funds to use elsewhere, for example.
That is where the utility of CDPs truly comes into play.
With CDPs, users can deposit their $ETH to borrow $DAI to use in yield farming strategies in order to earn yield.
In addition to holding their $ETH position, CDPs also introduced the ability to leverage positions, as the user can take the generated $DAI and swap it for more $ETH.
You can see how this would be a massive boon for DeFi users (especially yield farmers), and with more capital on hand, the possibilities are endless.
Now, there are more complexities that allow CDPs to function smoothly, such as the LTV liquidation threshold and platform fees, to name a few.
But at the atomic level, a CDP is simply a self-loan.
Stablecoin?
As we mentioned above, a CDP allows you to deposit collateral and generate stablecoins in exchange.
And the exact same is true for Preon.
Unveiling $STAR.
Preon users will be able to deposit collateral in order to borrow the $STAR stablecoin, and naturally, there will be incentives for users to do so, which will be introduced in time.
Additionally there are unique tokenomics to Preon, not to mention the potential synergies between Preon and other protocols.
To briefly touch on one unique feature that makes Preon and $STAR stand out:
$STAR will be borrowed at 0% interest rate.
This is only one of the multitude of features that make Preon a standout solution in the DeFi space, and as we approach the release date, much more information and a host of other use cases will be revealed.
$PREON Presale & Farms
With the soft-launch going live on Mainnet, you may be wondering when the full release will happen.
As we get closer to the date, more information will be released.
We are planning a presale for $PREON, the protocol’s governance token, and a farm release which will go live at a later date.
This presale and farm release will be a massive event that yield farmers will not want to fade.
Follow us on Twitter and turn on notifications so you never miss an update.
$STAR Liquidity Hub Reveal
For our beta phase we are partnering up with a DEX that we’ve been working with since before they’ve launched!
You, as a user, can farm $STAR LPs on Chronos, which will be incentivized by Sphere Finance and a portion of our $veCHR holdings.
We now plan on heavily incentivizing liquidity through our large governance position in Chronos, which we earned through Sphere Finance’s longtime partnership with Chronos via another protocol in the Sphere Ecosystem, Dyson and its suite of Liquid Market products.
In addition, users will be able to leverage and mint $STAR, borrow, and then farm on Chronos.
We would like to remind you that this incredible utility will be made available very soon, and this exclusive information all appeared on our community server first, so join our Discord server to gain special access to all the latest news.
Whitelist Opportunity
We have just one exciting announcement left…
As we inch ever closer to release, we are very excited to unveil everything we’ve created for you. So excited that we’ve planned a load of fun activities during the buildup towards launch!
These include thrilling competitions as well as a planned Zealy campaign with quests to be participated in.
We mentioned above how there will be a presale for $PREON — participating in these activities (especially the Zealy campaign) could make you eligible for a spot on our whitelist.
A whitelist spot grants you many benefits that will be revealed as we get even closer to the campaign kickoff date.
Ready to put your luck to the test? May the odds be in your favour.
That’s all we’ve got for today, friends.
Much more coming soon, so stay tuned.
Preon, onwards and upwards.
