FAQs
TOKENOMICS
Is there a way to stake PSM tokens?
Not at the moment, but our upcoming on-chain capital allocation system "Possum Core" will change that. Read the deep dive here: https://medium.com/@Possum_Labs/possum-core-a-principled-approach-to-on-chain-governance-70eab2e4d1ad
Why would I want to buy / hold / farm PSM?
Purchasing any asset is a personal decision and we cannot give financial advice.
That being said, the reason to acquire financial assets such as a currency or commodity which you don´t plan to consume is always the same: participating in the value creation of the underlying economy.
Possum Labs is building an on-chain DeFi economy with multiple protocols and products using PSM as the central currency. If this ecosystem thrives, the demand for PSM will increase.
PSM is a fixed supply token with a total supply of 10bn. The circulating supply can be obtained from coingecko: https://www.coingecko.com/en/coins/possum
PORTALS
Where does Portals’ yield come from?
The yield of a given strategy comes from the underlying protocol’s yield generating pool. It is bootstrapped by funders in exchange for bTokens when the strategy is launching, and becomes self-sustaining over time.
What are the risks involved with using Possum Portals?
There are two “layers” of smart contract risk to consider when using Portals.
First, there’s smart contract risk for the projects that we use as a yield source. Second, there’s the risk inherent in the smart contracts of the Portals themselves.
However, unlike many DeFi products, Portals has no liquidation risk or counterparty risk.
Apart from technical risks, there might be centralisation risks and economic risks, depending on the assets involved in staking.
How much upfront yield can I claim from Portals?
The yield amount claimable depends on the state of the Portal internal LP. You sell Portal Energy (the time value of your tokens) for PSM which you then can exchange for any other asset or hold to participate in the Possum ecosystem. The easiest way to know how much yield you can claim is to simulate it using the Portals frontend. https://portals.possumlabs.io/
How is the APR calculated?
Portal Energy (PE) is the representation of the time value of staked assets. 1 token staked or locked for 1 year generates 1 PE for the user.
To get yield, PE is sold via the internal LP and the user receives PSM. PSM has a market value in USD, and so the received upfront yield in PSM can be expressed in USD.
The staked capital also has a value in USD. The calculation of APR now becomes straight forward: APR = (PSM_received * PSM_price * lock_time_in_seconds) / (principal_staked * principal_token_price * 31,536,000)
Beause generating 1 PE by definition means locking 1 principal token for 1 year, we can simplify: valueReceived = PSM_received_for_ONE_PE * PSM_price
valueStaked = ONE_principal_staked * principal_token_price
APR = valueReceived / valueStaked
Who is the counterparty to upfront yield stakers?
Upfront yield takers effectively take a short position on the yield rates, so there must be someone taking the long position which we define as the counterparty. In Portals, the counterparty risk is spread among 3 different groups:
The most direct counterparty are yield speculators who buy PE (tokens or internal balance) because they assume yield rates go up, hence they could redeem it for more value later.
The next counterparty are the Portal funders who make their PSM available as initial upfront yield in exchange to potential gains down the road if the Portal performs well and pays back the debt.
All PSM holders collectively are the ultimate counterparty. Every time PSM is received as upfront yield, the circulating supply of PSM increases, potentially depressing the PSM price if sold. However, the yield generated by the TVL in Portals is automatically used to buy back PSM and refill the smart contract in a permissionless way via arbitrage.
Why should I use Possum Portals instead of directly depositing into the underlying protocol?
It depends on your time preference and what you plan to do with the yield. Earning yield over time is a well established method to grow your capital passively. Getting yield upfront enables you to use this yield in different ways and is particularly suited for active investors. Since capital in Portals can be unlocked anytime by repaying the unearned upfront yield, you can also think of upfront yield as a "loan" without liquidation risk that rewards you with interest instead of compounding interest expenses.
How does Portals fit into Possum Labs’ product suite?
Portals serves as Possum Labs’ first of many protocols designed to provide open and permissionless access to financial utility.
True to our positive sum philosophy, Portal contracts are immutable and don't have privileged admin access or value extraction via protocol fees. Yes, no fees. You can think of Portals and other upcoming protocols as public goods that solved the economic sustainability problems often associated with public goods.
Can a Portal run out of PSM tokens?
In theory, it is possible for a Portal to run out of PSM tokens. This would happen if all internal PSM were paid out to depositors in the form of yield. However, this is not realistic due to the infinite range of the internal liquidity pool of Portal Energy & PSM.
Further, the arbitrage opportunity presented by swapping PSM tokens for a Portal’s accrued yield serves as a mechanism to refill the liquidity pool of Portals.
For more details on this concept, we covered it in-depth in our blog.
How can I become an initial funder for a new Portal?
Becoming a funder is simple, just acquire PSM and contribute it to a Portal that is inactive, meaning the funding phase is ongoing. You will receive bTokens in exchange that can be redeemed for PSM later.
Be aware that every new Portal can have a different rewardRate, which influences how many bTokens you get for every contributed PSM. Make sure to follow announcements.
TIME RIFT
Every time I stake $FLASH in the Time Rift, does the 90-day timer reset? Does it happen to the APR as well?
Yes - the timer resets every time FLASH are deposited into the Time Rift
What is the Conversion balance/claim balance?
The claim balance tracks how many PSM you'll be able to withdraw from the Time Rift after the 90-day stake period is over. Every time the Bolting feature is used, the claim balance increases.
How does bolting every day improve my APY?
When Energy Bolts are distributed, the amount of Energy Bolts generated by your stake increases. So, the more you Bolt, the more Energy Bolts you receive going forward
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