Problems & Solutions
Let’s review some of the current DEFI problems and how Tazor solves them.
Current DEFI Problems:
- Many projects don’t have a great Use Case for their reward token
- Because of this, the value of the reward token usually goes down over time.
- Users are at the mercy of the protocol to determine the APR they receive on their investment. Usually, this means that the APR will decrease as more users and money flow into the protocol.
- Most projects don’t own the LP’s that their liquidity is based on, so the liquidity can come and go as it pleases. This is a problem when the market wants to either FOMO (Fear of Missing Out) buy or Panic sell because if the liquidity pulls out during these events, it makes the volatility even more intense.
- Tazor’s reward token (TAZ) has to be used to control your APR. The minimum APR is 10% by default, but there is no limit to how high you can make your APR! This gives TAZ the ultimate use case!
- In addition, Tazor gives a use case to many DEFI project’s reward tokens by allowing those tokens to be used to buy Tazor at a discount, so that the entire DEFI ecosystem flourishes!
- Because of this, the TAZ reward token has incredible value! It literally controls your APR with no limits! In addition to the TAZ reward token, the Tazor protocol has a primary token called TAZOR that represents your investment and is backed by a Treasury. This allows your investment not to be tied to a reward token.
- With Tazor, your APR is solely based on the amount of TAZ you have staked! So it doesn’t matter how many users or how much money flows into the protocol, your APR will stay at what you set it to.
- Tazor owns all of the LP’s and liquidity in the Treasury so that there is always liquidity in any situation.