Pollo
Basic Income Docment

ABOUT Pollo Basic Income

Pollo Basic Income is an algorithmic stablecoin and seigniorage running on BSC(Binance Smart Chain).

This system is inspired by Basis, bDollar, Bolt Dollar, Monster Slayer, MIDAS Dollar, and Soup Protocol.

Pollo Basic Income consists of the following three tokens.

  • PDO: Pollo Dollar. algorithmic stablecoin
  • sPDO: PDO Shares. tokens that get the benefit of seigniorage when the PDO expantion.
  • bPDO: PDO Bonds. tokens that can be purchased by burning a PDO when the PDO is a duration epoch contraction.

Launch, Banks, Shares

PDO token distribution

  1. Initial supply:100,000 PDO
  2. Distribution period: 3 weeks

Farming in the Banks Pool

1st week: 20,000 PDO
2nd week: 15,000 PDO
3rd week: 15,000 PDO

10x Earn PDO by PoFi-BUSD
10x Earn PDO by PoFi-BNB
10x Earn PDO by BUSD (Deposit Fee 4%)
03x Earn PDO by PoFi

The remaining 50,000 PDO will be used for marketing activities and the unused PDO will be burned.

sPDO token distribution

sPDO has a maximum total supply of 80,001 tokens.

  • 7,000 tokens will be allocated to teams and will vest linearly over 12 months.
  • 10,000 tokens will be allocated to Community Fund (DAO Fund) and will vest linearly over 12 months.
  • 100 tokens will be distributed in the launch promotion.
  • 1 tokens is provided as the initial supply of liquidity.
  • The remaining 62,900 will be allocated to Farming in the Shares Pool and will be released in a linear fashion over 12 months.

Farming in the Shares Pool

Reward: 62,900
Duration: 12 months (about 175 per day, releasing about 0.006 per block) *1 block takes about 3 sec.

All Deposit Fee: 3%
All Hervest Fee: 5%

160x Earn sPDO by PDO-BUSD
35x Earn sPDO by sPDO-BUSD
15x Earn sPDO by PoFi-BUSD
15x Earn sPDO by PoFi-BNB
05x Earn sPDO by PoFi

Tokens

PDO(Pollo Dollar)

PDO is an algorithmic stablecoin designed to stabilize at $1.

By applying game theory, we aim to stabilize the price at 1BUSD while repeatedly expanding the PDO supply and contraction.

sPDO(Pollo Dollar Shares)

sPDO loosely represent the value of the Pollo Basic Income Protocol and trust in its systemic ability to maintain PDO to peg.

During epoch expansions (when TWAP - time-weighted average price of PDO is above the 1 $BUSD peg), the protocol mints PDO and distributes it proportionally to all sPDO holders who have staked their tokens in the boardroom.

bPDO(Pollo Dollar Bonds)

bPDO help to incentivize changes in PDO supply during both epoch expansion and contraction periods. For starters, the exchange rate for PDO to bPDO is 1:1. When PDO's TWAP falls below 1 $BUSD peg, bPDO gets issued and can be bought with PDO at its prevailing price. Doing so takes PDO out of its circulating supply.

Contrary to early algorithmic, seigniorage stablecoin protocols, bPDO does not have expiration dates. The bPDO can be consumed when the TWAP of the PDO exceeds $1.01. When a bPDO is consumed, the same number of PDOs are obtained and the bPDO is Burned.

Platform

Boardroom

  • Epoch duration: 8 hours
  • Deposits / Withdrawal of sPDO from boardroom will lock sPDO for 6 epochs and PDO rewards for 3 epochs (if any).
  • PDO rewards claim will lock staked sPDO for 6 epochs and the next PDO rewards can only be claimed 3 epochs later

Banks

  • 10x Earn PDO by PoFi-BUSD
  • 10x Earn PDO by PoFi-BNB
  • 10x Earn PDO by BUSD (Deposit Fee 4%)
  • 03x Earn PDO by PoFi

Shares

  • 160x Earn sPDO by PDO-BUSD
  • 35x Earn sPDO by sPDO-BUSD
  • 15x Earn sPDO by PoFi-BUSD
  • 15x Earn sPDO by PoFi-BNB
  • 05x Earn sPDO by PoFi

Bonds

bPDO are always on sale, however, a purchase during epoch expansion will result in a nett loss. Hence, the platform UI only allows for purchase of bPDO when PDO falls below the 1 $BUSD peg.

No discount and premium for bond purchase.

Regulations

> https://pollo.finance/regulations

Orientation to Regulation History

  1. Epoch refers to the epoch in which stabilisation mechanism took place (through PDO expansion or issuing of bPDO)
  2. Price refers to PDO's TWAP (time-weighted average price) at that particular epoch
  3. Redeemed refers to the amount of bPDO bonds that were redeemed
  4. Bonded refers to the amount of bPDO bonds that were issued (during epoch contraction)
  5. Expanded refers to the amount of PDO that was added to the total supply of PDO

Orientation to Boardroom Staking

Epoch number refers to the current epoch in which Pollo Basic Income protocol is in

  1. In principle, the expansion rate is as shown in the following PDO Expansion section.
  2. Next Seigniorage indicates a countdown timer to the next epoch. (Each epoch duration lasts for 8 hours)
  3. APR refers to the simple returns in USD value relative to the amount of sPDO staked (USD value).

Note: APR fluctuates from time to time and is dependent on certain factors such as:

  • Price of PDO
  • Price of sPDO
  • Amount of sPDO staked in Boardroom (Locked Value)

Stake in Boardroom

  • 1) Approve the spending of sPDO
  • 2) Deposit your sPDO into the boardroom and with each passing epoch (provided that TWAP of PDO is > 1 $BUSD), PDO rewards will be distributed accordingly to all sPDO stakers in the boardroom.

Note: Every deposit & withdrawal of sPDO will lock up sPDO for 6 epochs, and rewards for 3 epochs. Likewise, every claim of PDO rewards will lock up sPDO for 6 epochs and the next claim of PDO rewards can only be done 3 epochs later. In addition, a deposit fee will be charged at the time of depositing the sPDO.

Current distribution of PDO rewards are
60% left for Boardroom
35% of minted PDO for DAO fund
5% of minted PDO for Marketing activities
(0% of minted PDO for Pollo Vaults incentive )

Rate of Return in a Nutshell

(((PDO Total supply x Expansion rate)/ Staked sPDO) x My staked sPDO ) - minus 40% Allocated for Dao Fund, bVaults & Marketing Activities.

PDO Expansion

Total PDO Supply Expansion / Bonds Issued per Epoch
Until epoch 29 *1.0450 Cap
Under 2,000,000 *1.0300 Cap
2,000,000+ *1.0250 Cap
5,000,000+ *1.0200 Cap
10,000,000+ *1.0150 Cap
20,000,000+ *1.0125 Cap
50,000,000+ *1.0100 Cap
100,000,000+ *1.0075 Cap
200,000,000+ *1.0050 Cap
1,000,000,000+ *1.0025 Cap

Bonds Mechanism (bPDO)

Contract Address: 0xaBdEf2d639855aA69065673F80bec4cEfE1f8Eb0

Unique IOU tokens that help stabilize the PDO price to the peg ($1) by reducing the supply of PDO if the ce goes below $1. Bonds can be purchased only if the TWAP (time-weighted average price) of PDO is below $1.Bonds are issued in the amount of 3% of the circulating supply of PDO at the end of each epoch if the TWAP of PDO is below $1.

Bonds TWAP is based PDO price TWAP for the Previous Epoch as it Ends.

Community Fund

Community Fund Contract Address: 0x500A69c015773EebF4CaaB703c9F1eA4C3C357c9

The Community Fund is an important contract to make Pollo Basic Income more stable. As an example, it follows the following strategy.

  1. During the epoch expansion, you can either hold a specified percentage of PDOs or sell them; any funds earned from the sale of PDOs will be kept as BUSD or BNB.

    The percentages as of April 2021 are as followsPDO hold 40%
    PDO sold and held as BUSD 60%

    * The above percentages will be adjusted according to the situation.

  2. Deposit your earned PDO into the Shares Pool to harvest sPDO.
  3. Deposit the earned sPDO to the Boardroom to receive the distribution of PDO.
  4. During Epoch contraction, purchase bPDO as needed

Contract Summary