Core Concepts

Peapods Finance is built upon a modular suite of DeFi primitives that collectively enable any ERC-20 token to serve as the base layer for yield generation, liquidity provisioning, and governance.

These components operate permissionlessly, without emissions, and without the need for centralized intermediaries. Each module can be used independently or in combination to create self-sustaining financial ecosystems around any asset.

Core Components

Pods Smart vaults that wrap base tokens (TKN) into synthetic tokens (pTKN). These synthetic tokens become composable, yield-bearing derivatives of their underlying asset.

Volatility Farming (VF) A mechanism that rewards liquidity providers with real yield based on protocol fees with no emissions. Yield increases with volatility and liquidity depth.

Leveraged Volatility Farming (LVF) A soft-leverage system that enables users create full-range liquidity positions by depositing only the pTKN side of the LP pair. Users borrow the paired asset to open amplified LP positions, increasing yield and retaining full exposure to their chosen asset.

Self-Lending & Proof of Demand (PoD) A mechanism enabling users to bootstrap lending markets by borrowing from themselves in a flashloan-style loop, initializing utilization and demand without requiring outside liquidity.

Meta-Vaults: Governance-directed smart vaults that aggregate lender deposits and automatically allocate liquidity across whitelisted Pods, based on protocol-defined strategies.

vlPEAS Governance Governance structure based on vlPEAS which allows users to vote to direct liquidity flow, approve Pod whitelisting, and earn protocol revenue.

Protocol Flywheel A compounding feedback loop where usage generates fees, which increase LP rewards and vlPEAS revenue, leading to further adoption and deeper liquidity.

Each module is fully composable with one another, enabling projects to tailor strategies and capital flows to their unique community needs or market conditions. The following sections explore each of these primitives in greater detail.