Exploring Cerra.io: defi platform offering passive income on Cardano

Cerra.io is a decentralized finance (defi) platform where users have ownership, fueled by the CERRA utility token on Cardano. 

The CERRA utility token is the primary catalyst for Cerra.io’s economic activities. It represents a share of ownership in the platform. 

Profits are distributed among CERRA token holders through staking, ensuring that all circulating tokens are entitled to receive 100% of earnings. 

Holding and staking CERRA can be a source of passive income.

Cerra.io components are fully decentralised and open-sourced, meaning that the platform’s engine is being run by smart contracts, with Cerra.io acting as an interface instead of a centralized setup like its predecessors on other chains.

CERRA is a utility token and the only true source of ownership.

Cerra.io is already live and can be accessed at app.cerra.io. The platform generates revenue by providing defi services and collects fees for their usage. 

All fees from interactions with Cerra.io smart contracts are automatically funneled into the treasury smart contract.

Subsequently, the Treasury smart contract releases a specified sum of funds based on the amount of CERRA staked.

The platform also uses decentralized oracles.

A breakdown of how the smart contracts interact with each other:

Cerra.io platform comprises these defi services:

• Peer-to-peer lending: Creating each borrowing or lending request incurs a fixed ADA fee placed in the Treasury smart contract.
• Spot swaps: Every swap executed within the liquidity pool carries a fixed ADA fee directed to the Treasury smart contract.
• Pool lending: Borrowing from the liquidity pool comes with a set ADA percentage fee, which is also deposited into the Treasury smart contract.
• Derivatives: Opening each position involves a fixed ADA fee deposited into the Treasury smart contract.

More products will be introduced into the ecosystem during the development stages throughout 2024 and 2025.

Cerra.io token

The total supply is 50 million CERRA.

Its scarcity and adoption might support prices.

 The presale is ongoing, with the public sale set for Q2 of 2024.

Token utility

• Staking – Stake your CERRA for a proportional amount of 100% of platform profits.
• Holding – Holding CERRA will eventually lead to using the platform for free and making passive income.
• DAO voting – allocate CERRA and contribute to Cerra.io development and operational direction.
• Farming – Provide liquidity to Spot Swap Pools / Lending Pools / Derivatives and receive CERRA incentives.
• Governance – Propose or vote on certain platform features, upgrades, resource allocation, and more.

Tokenomics breakdown:

Roadmap

Roadmap

2023 was the year of the platform launch, with initial products being P2P lending and temporary trading functionality supplied by a third-party provider.

2024 kicks off with further improvements on the platform. AMM swaps is the next key product of the ecosystem, which will drive total value locked (TVL) and further adoption of Cerra.io

Moving forward, the structure behind the passive income engine will be developed, where the true profit-sharing functionality will come alive.

Pooled lending and derivatives will follow; these functionalities will be based on the previously developed P2P-lending / AMM swap products.

All smart contracts will be open-sourced for transparency.

Conclusion

Cerra.io offers a profit-sharing model that sets a precedent for other projects and taps into true decentralization.

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