PlentyDeFi is an innovative DEX on the Tezos blockchain and one of its most used dApps. It will soon add many useful features for decentralized trading like a stableswap and limit orders. Sometimes, PlentyDeFi is handling more transactions than Quipuswap, which is the go to swap of Tezos.
The core part of Plenty are its AMM and its liquidity pools, which work much like SushiSwap. People can provide their cryptocurrencies to a trading pair or liquidity pool and the DEX will allow traders to swap between the tokens at a price that is automatically set by the supply of tokens. There is a 0.35% fee on every trade, 0.25% are going to the liquidity providers as a reward and the remaining 0.1% are used to buy PLENTY tokens that are distributed to people that stake their PLENTY tokens in the xPLENTY pool.
Shortly after its launch, Plenty has enabled its liquidity providers to farm its native token and also the tokens of partnered projects like . Plenty also launched its governance this year and successfully implemented its first proposal. Quipuswap, which is the biggest competitor, has only very recently set up a few farms and has yet to become an actual DAO.
The protocol has plans of adding limit orders, which would allow the users to plan their trades in advance. The developers are also working on a stableswap feature to lower the cost of trading assets that have the same value like different stablecoins. There will also be a prediction market and liquidity bootstrapping pools that will make it easier to launch new tokens.
One big problem with the DEX is that Plenty, unlike Quipu, doesn't allow its users to trade XTZ directly with other cryptocurrencies. However, Plenty solves this problem by instead utilizing ctez, which is a token that is backed by staked XTZ and it allows its users to still participate in governance on the blockchain and earn baking rewards while also using their XTZ in DeFi.
The DeFi protocol held more than 60 million dollars’ worth of total value at its peak last year. Ever since the crypto market has become more bearish this has dropped down to about 4 million. However, it is still one of the most used dApps on Tezos and has many great plans for the near future that could make it the biggest DeFi application of its blockchain.
The PLENTY Token
PLENTY is the native governance token of PlentyDeFi. If you stake your PLENTY for governance you receive xPLENTY that represents your share of the pool and can be used to vote on proposals in the DAO. A part of all the collected fees is used to buy back PLENTY and add it to the xPLENTY pool and future services like the liquidity bootstrapping pools could add more utility to PLENTY. Currently there is an APY of 26% for staking the token.
There is a max supply of 62,000,000 PLENTY tokens and about half are in circulation. There was no pre-sale but 1,000,000 tokens were pre-mined for beta testing and to set up liquidity pools. Of the remaining supply, 90% are being distributed to liquidity providers and 10% is going to the developer wallet. Currently 30 new PLENTY are created with each new block on Tezos, but this can be adjusted by the DAO and has been decreased by it before. Almost the entire supply is going to the users, which is really nice.
The value of the token depends on how much liquidity the DEX has and how many transactions the DeFi protocol handles. That is because the governance would affect more money and because there would be more buy backs of PLENTY with more liquidity and trading. The price has been falling drastically ever since late October 2021 just like with many other projects on Tezos because the market has become more bearish and also because Tezos and its ecosystem seem to have lost a lot of attention. But if Tezos improves further, which is what it was designed for, and PlentyDeFi implements its planned features then it could grow to become a very valuable DeFi application.
Bitforex is the only centralized exchange that has PLENTY listed right now, but you can also buy the token with PlentyDeFi itself and also with the Quipuswap DEX but you will need XTZ to pay for the transaction fee. You can use a Temple Wallet to store your PLENTY tokens and to interact with dApps on Tezos.
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