Proof of Profitability

With an increasing number of DeFi projects emerging on the market, we have observed that funds tend to accumulate around DeFi ecosystems that promise relatively high yields with satisfactory security policies. The phenomenon has inspired a brand-new consensus model - Proof of Profitability, an approach to proving an ecosystem’s profitability through decentralization of the smart contract. We have designed a whole system to ensure that every role involved in the consensus model has ample motivation and confidence to participate.

POP is designed based on the following four principles

• 90% funds will be at the disposal of the most profitable 10%

• Higher profitability promises more funds allocated

• Profits will be used to subsidize impermanent loss as priority

• Dynamically adjusted stop-profit and stop-loss rules

POP formula: POP = Annual% *(MP)(now - actionEndTime)