Mission & Vision

Builders of positive-sum DeFi on permissionless networks.

Mission

​Possum Labs is on a mission to spearhead the development of positive sum finance.

In short: we build PossumFi.

Fun fact, the name "Possum" is derived from positive sum and was written PosSum originally. As it turns out, it's also an animal which gave birth to our branding.

Positive Sum Finance?

The concept of positive sum may be understood intuitively but what does it actually mean in the context of finance and in the context of our activities?

First of all, we believe that DeFi and traditional finance will fully merge in the future, hence the emphasis on "De"Fi is not required. However, we build protocols according to the original values of DeFi. Our core values are:

• Reliability & safety via immutable contracts. No admin access.

• Simplicity over complexity

• Systems thinking from first principles

• Positive feedback loops & incentive alignment

Creating positive sum finance means for us that we enable free financial interaction between users with no friction. The important part is to eliminate value leakage to third parties via value extraction and instead create positive feedback loops.

Not extracting value means that only participants who continuously create value for the ecosystem shall receive value in return. Eliminating protocol fees for the purpose of redistributing them as dividends to token holders is a great example.

Revenue share by distributing protocol fees is the predominant model in DeFi these days, but in our view, it creates a systematic misalignment of incentives between users and token holders. Protocol users want the lowest fees to not lose value in their financial interactions and investors want the highest fees accepted by the market to maximize their returns. The result is a continuous struggle between the two camps to find the acceptable balance of fees for a particular product. It also causes unnecessary, zero-sum competition by new projects that offer the exact same service trying to acquire users by undercutting fees. On the other hand, positive sum competition in the form of innovation and new products is a strong force for improving quality of life and a great advantage of a capitalist system. We welcome positive sum competition and reject zero-sum competition.

Using our token PSM as ecosystem currency is the most incentive aligned way of capitalizing the value of a product ecosystem. Erasing protocol fees eliminates zero-sum competition based on undercutting fees and offers the best possible condition to users. Meanwhile, integrating PSM at the functional core of all PossumFi products directly links utility and value. This system maximally aligns interests of users and investors as everyone contributes and benefits from a strong PSM token.