Platform Ecosystem
Last updated
Last updated
The REDHeal Platform is a blockchain-based DeFi service platform built on Polygon. The REDHeal Platform will offer a variety of DeFi services, including coin/token-collateralized lending and staking. Users of the REDHeal Platform can either become liquidity providers by staking their coins/tokens, thereby contributing to liquidity provisioning, or borrowers by using their coins/tokens as collateral to receive loans.
The platform’s governance token, REDH (hereinafter referred to as the “REDH token”), is issued based on the ERC-20 token standard of the Polygon PoS Chain. The REDH token serves as a means of rewarding users who participate in the platform’s services and can also be used to pay fees incurred when utilizing DeFi services on the platform.
The REDHeal project plans to develop and stabilize the platform and services further, ultimately establishing an expanded DeFi ecosystem centered around the REDH token. To enhance user convenience and accessibility, the project team will first develop and provide a dedicated multi-signature wallet. Subsequently, the team will sequentially develop a mobile-exclusive DApp and an NFT marketplace to expand the scope of services into more diverse and advanced sectors.
In the REDHeal platform's De-Fi services, users can deposit their coins/tokens into De-Fi protocols to earn interest income, or use the deposited coins as collateral to borrow other coins/tokens, as well as provide liquidity and earn interest income through Yield Farming.
Among the De-Fi services offered on the REDHeal platform, staking is one of the ways to earn REDH tokens. Users can purchase REDH tokens directly through listed external exchanges, and they can obtain tokens in the form of interest income and fees by providing liquidity to the REDHeal platform. Although staking may not offer high yields, many investors prefer this investment method due to its ability to securely hold assets.
In De-Fi, staking refers to locking a certain amount of cryptocurrency as a stake. Regardless of price fluctuations of the coins/tokens they hold, users can earn a certain level of profit simply by depositing (holding a stake in) their coins/tokens for the duration of the staking period. In other words, instead of tying up the liquidity of their coin/token stakes (Lock-up), users participate in the operation and validation of the blockchain platform, receiving coins/tokens as rewards. De-Fi staking is a method of generating interest income within a decentralized financial system, and the reward rates vary depending on the coin/token.
① Alice deposits 1 BTC and 10 ETH into the liquidity pool.
② Bob wants to exchange 0.1 BTC for ETH.
③ The smart contract uses the reserves of the liquidity pool to calculate the price.
④ Bob receives ETH, and the liquidity pool ends up with slightly more BTC and slightly less ETH.
As a liquidity provider, Alice earns a small fee (interest income) from Bob's transaction.
Users can supply liquidity by directly staking the mainnet coin (POL) or by staking tokens issued on networks compatible with Polygon through the REDHeal Platform. By doing so, liquidity pools essential for DeFi services are established and maintained in a stable manner. Users who contribute to the creation of liquidity pools by staking tokens are referred to as Liquidity Providers (LPs). In return for their contributions, Liquidity Providers earn interest income through yield farming, receiving a share of transaction fees and token incentives.
Through the liquidity pools, users can access a variety of DeFi services, including coin/token-collateralized lending and swaps (token exchanges).
Users can borrow other coins/tokens by using the mainnet coin (POL) or tokens issued on networks compatible with the mainnet as collateral on the REDHeal platform. The De-Fi lending service provided by REDHeal allows users to borrow the desired coins/tokens without going through traditional financial institutions. The lending transactions on the REDHeal platform are automatically executed through smart contracts, utilizing blockchain technology, which ensures transparency and security in the process.
Users of the REDHeal platform can use the platform's governance token, REDH, to pay for transaction fees, loan interest, and other costs associated with lending transactions, depending on the loan period and amount. The REDH tokens paid will create a circular structure with the interest income earned through staking, ensuring that the platform's ecosystem operates smoothly. This structure not only facilitates the effective use and activation of REDH tokens but also contributes to the increase in the token's value in the market.
The REDHeal platform intends to reward users with REDH tokens for staking. Within the De-Fi ecosystem of the REDHeal platform, anyone can become a liquidity provider, and users who provide liquidity will receive staking interest earnings as a reward. De-Fi yield farming in the REDHeal platform services is one way for coin/token holders to generate profits by utilizing their assets. Generally, the rewards from yield farming are paid out in the form of trading fees or interest from loan funds, and the payment method used is the platform's governance token, REDH.
The main mechanisms of yield farming are as follows:
• Liquidity Provision
Users provide assets to liquidity pools, playing a role in facilitating transactions on decentralized exchanges (DEX) or lending services. In return, they receive a portion of the trading fees or interest paid in REDH tokens.
• Staking
Users who want to deposit their coins/tokens into liquidity pools will lock up their tokens to support the functions and security of the BCS blockchain network or the REDH De-Fi platform. In return, they will receive REDH tokens as rewards.
In the initial phase of the REDHeal Platform’s services, users will be able to connect external wallets compatible with the Polygon mainnet network. In the future, the REDHeal project team plans to develop and launch a proprietary wallet, the Multi-Signature Wallet, to enhance user convenience and lower the entry barrier for DeFi services.
The REDHeal Platform’s dedicated wallet will be a browser extension that allows users to manage and utilize the platform’s REDH token and other tokens based on the Polygon network. This wallet, available as software installed on computers or mobile devices, will securely store users’ private keys and enable coin/token transactions.
Through this wallet, users will be able to interact with smart contracts deployed on the Polygon blockchain. They can execute smart contracts, read and write data, and send transactions. To transfer coins/tokens stored in the wallet to other wallet addresses, users simply input the recipient’s address and specify the amount of tokens to be sent.
The wallet will primarily provide secure storage, transfer, and management of REDH tokens and other Polygon-based tokens. Its functionality will gradually expand to support staking, coin/token-collateralized lending, and other DeFi services on the REDHeal Platform, as well as NFT trading.
Users of the REDHeal platform receive REDH tokens as rewards based on a certain percentage determined by the foundation for the interest income generated from using the De-Fi services provided by the platform. The REDH tokens obtained as rewards can be used to pay transaction fees and interest fees required when utilizing the De-Fi services offered by the platform. Additionally, they can be exchanged for other coins and utilized for virtual asset trading. By holding the tokens, users gain the right to participate in the DAO and can also earn additional interest income by depositing them into the liquidity pool formed on the platform.
As Web 3.0 emerges, decentralized autonomous organizations (DAOs) based on blockchain technology are gaining attention. A DAO is an organization that is not represented by any specific entity, meaning it operates in a decentralized manner and requires no specific commands or management, thus being autonomous. In other words, a DAO is structured such that there are no centralized management hierarchies, and all members can autonomously participate in collective decision-making through smart contracts, aiming to achieve common goals. Because a DAO executes rules defined by its creators autonomously through smart contracts, the members do not need to know who each other are, nor is there a central organization for decision-making, yet collective decision-making towards a common objective is still possible.
The REDH ecosystem operates through its primary decision-making body, REDHeal DAO, which proposes, revises, and determines key agendas within the ecosystem. To conduct fundraising, profit distribution, and voting among community members through the DAO, a governance token called REDH token is required. DAO members are granted voting rights proportional to the number of governance tokens they hold, allowing them to participate in the decision-making process of the DAO and vote on presented agendas. Additionally, members can directly propose the direction of fund usage and the operational direction of the DAO, and they can receive rewards in REDH tokens based on their contributions to DAO activities.
The rules established by the DAO created via smart contracts are accessible to anyone who is a member of the DAO (transparency), but cannot be easily changed or deleted by anyone. Instead, changes to DAO rules can only be made through voting by members who hold governance tokens. This ensures fairness technically. Moreover, everything is recorded on the blockchain, securing transparency in the decision-making process and operations. Therefore, DAOs play a crucial role in enhancing individual participation and establishing a technical foundation that allows all members to sustain the ecosystem without a central organization.
Although a DAO operates without representatives, decisions regarding what to do with the funds it raises are made through voting by its members. In this case, voting rights for significant decisions of the DAO are granted according to the proportion of governance tokens held by the members. All holders of governance tokens are given the authority to propose changes to the rules simply by holding the tokens. The more tokens one holds, the greater the voting power they possess, thereby enabling them to exert more influence over the DAO.
