Pollen is a new, decentralized asset management platform aiming to bring changes to DeFi.
While DeFi is revolutionizing the financial industry, it is still very unstable and experimental.
Pollen aims to bring additional benefits such as stability, new products, and more to the hands of the community.
Pollen DAO is a young asset pool management platform that is fully decentralized and meant to stabilize the market and offer a way for DeFi to overtake CeFi.
Despite the recent turbulence in the crypto industry, its DeFi sector is still seeing as impressive amounts of development as ever. New projects continue to launch and tackle various issues that trouble this, as well as other industries.
One example is asset pool management, which simply wasn’t efficient enough, and so a DeFi project Pollen decided to rethink the way it is being approached from the ground up. It brought a number of improvements, such as reducing the market risk, and it created a safe harbor for market volatility via its portfolio assets.
What you need to know about Pollen
The project is fully decentralized, of course, acting as a community-governed DAO which is fully integrated into the growing DeFi ecosystem. Its creators wanted all decisions to be as transparent and decentralized as possible, granting all members of the community sovereignty and oversight of the project and its inner workings.
Also, to reduce the risk, they designed the project to be less volatile than other assets, thus making it safer than the majority of its peers.
Pollen believes that there is a good chance that DeFi will replace CeFi in time, and in order for that to happen, asset management will have to change. It needs to be safer and more transparent, but also distant from noisy, volatile markets. It plans to utilize what it calls the ‘wisdom of the crowd,’ effectively creating DeFi by the people, for the people.
What does Pollen do?
Pollen’s role in the revolution of the financial industry is to maintain an asset pool while allowing others to curate their own custom asset pools. Essentially, it leverages a reputation-based governance protocol, alongside an incentivized liquidity model. This allows for full decentralization while a new class of yield-bearing instruments is created.
The project allows participants to collectively govern digital asset pools themselves in one of two ways — either directly, or by delegating their voting power.
As for its ability to offer a more stable market, it comes from the project’s voting power delegation mechanism and its governance model. By combining the two, it allows for recalibration and optimization of asset pools. This constant rebalancing is based on various market conditions and emerging opportunities that constantly switch in the crypto industry.
So, if the market suddenly tanks, the portfolio can change to adjust to the new situation. Simultaneously, the portfolio will seek out new market opportunities, and take advantage of them as soon as it finds them.
The project is constantly working on improving itself, and its last update took place in early July, bringing new token names, easier ways to execute, and more. The project also plans to bring NFTs to Pollen DAO, granting its community access to the growing asset class via Pollen custom portfolios, with the intention of creating many additional products in due time.