FAQs

"With each new answer, new questions take shape."

-Epigraph of the Traveler

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Where is the yield coming from?

The yield of a given strategy comes from the underlying protocol’s yield generating pool. It is bootstrapped by xyz users when the strategy is launching, and becomes self-sustaining over time.

Why should I use Possum Portals instead of directly depositing into the underlying protocol?

It is a simple trade off of desiring yield over time compared to yield right now. Yield over time is a tried and true method, but requires accumulation over an extended period. Yield right now can provide a flexibility and optionality that is hard to come by in the financial world.

Dare I say we made finance fun?

How does Portals fit into Possum Labs’ product suite?

Portals serves as Possum Labs’ first of many financial products designed to provide open and permissionless access to services that used to be only accessible within the domain of traditional finance, or completely new services altogether.

For example, being able to claim your yield up-front is a new innovation made possible by smart contracts. Our users also reap the benefits of full repayment flexibility, no liquidations, and zero protocol fees.

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.

How do Portals enable yield trading?

Since the “Portal Energy” is technically an ERC20 token, it’s possible to allow users to mint their line of credit and trade it on the open market. Doing so would essentially transfer the interest owed by Possum from one user to another.

An application of this would be that a depositor could buy Portal Energy on the open market to receive their upfront yield and withdraw their principal sooner than they otherwise would be able to.