Decentralized annuity (a.k.a. 401k) to achieve financial freedom
How much of your income do you save for the future? Does your income satisfy your current spending and saving habit? Have you joined 401(k) to prepare yourself a nice summer house in the countryside for your 60s (or it could be 40s) and later?
Leaving behind savings accounts with little interest, people do their own personal investments to prepare themselves for future life. Some of us invest in the stock market, and some of us prepare for a longer stake, a pension. However, it turns out not many enjoy the blessing. According to the U.S. Census Bureau, while 59% of employed Americans have access to 401(k), only 32% are investing in one.
Moreover, governments with excessive authority raise tax rates and implement fiscal policies, which results in inflation and depreciation. As a result, the pension and annuity you’ve paid every month are now becoming a bottomless pit.
While pension and central bank systems are facing a crisis, decentralized finance markets with less limitations and infinite possibilities have been building strength.
The flexible market now has reached over $157 billion(USD) in the total value locked as of May 2021(source provided – DefiLlama). A variety of DeFi protocols, such as deposits, loans, swaps, futures, options, leverages, and insurances, enable anyone to invest without any physical restriction.
There was no product in the market that consistently generated cash flows like pension or annuity, but now DeFi 401(k) landed safely in the market.
Punk Protocol, providing the world’s first decentralized annuity service, partners with Gitcoin and becomes a Grants Round 10 Hackathon sponsor on the 16th of June. Gitcoin’s Hackathon greets the 10th round, and the event will be running from June 16th until July 7th, 2021. Punk Protocol opens 5 bounties with rewards of $35,000 as a core sponsor along with Aave, Uniswap, Polygon, Algorand, The Graph, Reflexer Labs, Perpetual Protocol, DODO, and more.
What is Punk Protocol?
Started from its ultimate goal to liberate people from the outdated pension system and empower their financial freedom, Punk Protocol has launched its first product, Saver, on Ethereum testnet.
Saver is a decentralized annuity product configured to produce periodic cash flows using optimal yield strategies.
Pension is generally used for retirement, but it would be right to see Punk Protocol as a structured DeFi instrument generating regular passive income with interest as well as preparing funds for retirement. In addition, pension is typically a long-term basis financial instrument; however, Saver can be set up as users want from the short-term to the long-term by setting when to start receiving, how often to receive, and how many times to receive.
Punk Protocol X Gitcoin Hackathon
Gitcoin is the home of web 3 developers, a place for developers to learn, earn, and network while building open-source decentralized applications, learning new technologies, and meeting like-minded developers.
Through the partnership with Gitcoin, Punk Protocol decides to invite hackers, builders, and creators to begin experimenting and build diverse investment strategies and expanding to Solana. Eligible for anyone to participate, those who submit the result and meet the criteria in each project will be rewarded.
1. Building Yield Strategy for DeFi 401(k)
2. Coding Stablecoin Yield Strategy
3. Integration of Saver to SOLANA Network
4. Building&Coding BTC Yield Strategy
5. Punk x Aave Yield Strategy
The revenue lead of Gitcoin responded to Punk Protocol’s participation, “The Gitcoin team is excited to have Punk Protocol join us in their first Gitcoin hackathon, supporting Ethereum and the future of Web3 alongside Gitcoin Grants Round 10”.
Upon the latest launch of test net on the Kovan network, which received a lot of zeal, the team takes a progressive step on the altering market. And this event of Hackathon kicks off that journey.
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