How does the “ShitCoin Recycling Station” Poop in the DeFi world achieve a spiral of upward growth in the circular economy?
How does the "ShitCoin Recycling Station" in DeFi achieve upward growth in the circular economy?
“Poop is building a circular economy to allow holders of ‘Shitcoin’, which has 0 liquidity, to realize its residual value. This circular economy also builds a rising spiral system, allowing all participants to profit.”
An iteration of the cryptocurrency industry, ‘Shitcoin’ with 0 liquidity
Web3 marketing is mainly based on blockchain technology to achieve direct interaction and value exchange between brands and users, with brand-issued tokens being the most common Web3 marketing method to directly incentivize users to participate in marketing activities. Based on this, users can obtain the brand’s products or services through tokens and achieve seamless cooperation between the brand and users.
Based on the encrypted token, marketing was able to achieve good results in attracting new users in the early stages. For example, top ecosystems such as Uniswap, ENS, Aptos, Optimism, and Arbitrum One have issued valuable token airdrops to a large number of eligible community users (usually users who have contributed to the development of the ecosystem), and have achieved considerable results after the airdrop (users usually become sticky users of the community actively), and we see that most users in the cryptocurrency industry look forward to becoming early users of some early ecosystems under the drive of token rewards. In fact, few people will refuse this kind of ‘finger movement’ and the possibility of getting a ‘free lunch’.
Of course, the reason why this ‘simple and rude’ airdrop method can continue to be effective is usually based on a strong community consensus, which can usually hedge the negative effects of the airdrop.
For encrypted projects that lack community cohesion (most of them belong to this category), after providing airdrops to users, they often find it difficult to hedge the negative effects due to weak value foundation, and the token will experience short-term crashes and lose liquidity after facing the market.
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In fact, since 2020, thousands of encrypted projects have carried out marketing through token airdrops, but there are few tokens that have value and good liquidity. This means that the crazy airdrop marketing behavior has produced a large number of ‘Shitcoin’ with almost 0 liquidity.
In addition to airdrops, each round of bull and bear alternation and each round of industry hotspots will cause a large number of encrypted projects to die and result in rug pulls, which also leave a large number of 0 liquidity counterfeit coins. With the continuous iteration of the cryptocurrency industry, it seems that no one remembers the brilliance of these tokens and the projects they represent.
Almost every “crypto native” crypto account may have dozens of the above “Shitcoin” assets, which not only represent their past “achievements”, but also indicate the speed of iteration and the cruelty of competition in the crypto industry.
Can these “Shitcoins” be saved?
In the real world, the use value of most items will become lower and lower after a certain period of use. In recent years, with the development of various recycling technologies and the strengthening of environmental awareness in various countries, the recycling system of various items is constantly improving. Based on this, we can further realize the residual value of these items through recycling and contribute to the circular economy.
In the Web3 world, behind every “Shitcoin”, it may represent the efforts of the holder or a failed investment. After these assets become completely 0 liquidity “Shitcoins”, the holders are regretful and may feel helpless.
Now, these former “Shitcoins” can also have the opportunity to extract residual value like in the real world through the “recycle bin”. A project called Poop is becoming a “recycle bin” in the DeFi field. It is establishing a series of recycling mechanisms and facilities for these “Shitcoins” to help these assets rebuild liquidity through token recycling, and is becoming a gospel for many “Web3 natives”.
Poop: The “Recycle Bin” of the DeFi World
Poop is becoming an on-chain place for the recycling of 0 liquidity assets. The protocol has established a set of recycling mechanisms with the ability to create value momentum, which allows all “Shitcoins” to achieve “recycling” through its recycling system and receive returns of $POOP tokens to realize the residual value of these assets.
The Poop recycling system includes several parts: Shitcoin Recycle, POOP Station, Referral Program
Shitcoin Recycle is the core function of the Poop platform, which is the main execution site for “Shitcoin” recycling. In Shitcoin Recycle, we can exchange 0 liquidity assets generated by investment failures, airdrops, and Rug Pulls with $POOP tokens like DEX transactions. After the exchange is completed, “Shitcoin” holders can sell their $POOP tokens to generate income, while “Shitcoin” is directly burned and destroyed.
Shitcoin Recycle will handle different paths for different “Shitcoins” with different liquidity levels.
When the liquidity of a “Shitcoin” is ≥ the required minimum liquidity, Shitcoin Recycle protocol will convert the “Shitcoin” into Layer 1 tokens (such as ETH, BNB, etc.) through a smart router, and then use the Layer 1 tokens to purchase $POOP tokens.
When the liquidity of a “Shitcoin” is < the required minimum liquidity, the user needs to pay the Layer 1 token fee, which is equal to the required minimum liquidity. Then Shitcoin Recycle will recycle the "Shitcoin", and the user will receive $POOP as a reward.
In addition to the Shitcoin Recycle protocol, POOP Station is the place where $POOP tokens are minted and destroyed in the Poop protocol. In POOP Station, users can use Layer 1 tokens to buy or sell $POOP tokens through this trading hub. During this process, continuous deflationary and empowerment of $POOP tokens will occur to help build a more solid foundation of value for $POOP tokens.
In addition, the Poop protocol allows $POOP holders to further profit through staking and LP, and can continue to receive dividends from the deflationary mechanism.
The Poop protocol also establishes a referral system, which aims to reward users who help Poop expand its community and share its products. When a user invites another user to use the Poop protocol, 10% of the invitee’s earnings will be rewarded to the inviter as an incentive, and these rewards will be immediately distributed to the inviter’s account in the form of Layer 1 tokens upon completion of the transaction. Through this direct incentive model, Poop is helping to build a strong community and user base, and bringing substantial income to contributors.
The Poop protocol has established a “recycling” system based on the $POOP token, and of course, in order to let $POOP tokens continue to capture value in its circular economy system and offset the potential impact of selling pressure, it has also designed a highly deflationary and empowering mechanism to ensure that $POOP always maintains an upward spiral and encourages more $POOP holders to become holders.
The Rising Spiral of Poop in the Circular Economy
The Poop protocol has established a rising system based on an elastic supply mechanism for collateral, and this asset was launched early through fair means without private placement and early whale investors and market-making, ensuring that $POOP can achieve a rising spiral.
Buying promotes the rise of $POOP value
When users use Layer 1 tokens to buy $POOP tokens through the POOP Station, new tokens will be minted through the Poop Finance contract. During the purchase process, buyers need to pay a certain amount of tax (10%), and this part of the tax will be allocated to the Backing Vault (60% of the tax revenue, which is the liquidity reserve pool of $POOP tokens), LP stakers and contributors.
Although the total supply of $POOP tokens increases, the tax mechanism ensures that the actual amount of $POOP obtained by buyers through Layer 1 tokens is reduced.
For example, when the BNB/POOP exchange rate is 1000, the amount of $POOP obtained through the purchase with 1 BNB on the POOP Station will be less than 1000, further promoting the continuous rise of $POOP token price (value increase offsets the impact of inflation). The purchasing behavior also promotes the increase in the value reserve of Layer 1 tokens in the POOP Station vault.
Selling $POOP accelerates destruction
When users sell $POOP for Layer 1 tokens, although the Layer 1 token reserve in the POOP Station decreases, the $POOP tokens sold will be destroyed by the Poop Finance contract. At the same time, the sale of $POOP also needs to pay tax (10%), which will be allocated to the Backing Vault, LP stakers and contributors, accelerating the contraction. The destruction of $POOP tokens will also accelerate the rise of $POOP token price.
It can be seen that buying or selling $POOP will bring new gains to the rise of $POOP value. This means that more and more users will use Poop to recycle “Shitcoin”, and the Poop ecosystem and $POOP will continue to accumulate new value, making every participant a beneficiary. Of course, the rising spiral of $POOP is promoting more holders to hold for the long-term and continue to profit from the rising spiral system.
Poop Protocol will launch on BNBChain on June 28th at 20:00 (UTC+8), and will subsequently be deployed to other ecosystems such as Ethereum, Arbitrum, Optimism, zySync, and Polygon.
From an industry perspective, the vast majority of crypto players are holders of “Shitcoins”, and they will also be potential user groups of Poop Protocol, especially under the incentive of the Referral Program, which will accelerate the trend of these users flooding into the Poop ecosystem. As more and more users participate in “recycling” transactions, the spiral wheel of the Poop ecosystem will also accelerate its operation, and the underlying value of the ecosystem will continue to be amplified.