Charge DeFi Transitions To Bloomify
Charge DeFi initially launched in 2021 to develop and successfully launch products that would simplify processes and benefit users in the Web3 space. With our first product launch of Bloomify, an advanced yield optimizer, we are moving entirely from Charge DeFi to Bloomify.
In June we released a significant update regarding how the Bloomify release would impact Charge DeFi, $Charge and $Static. We announced that we would take steps to remove the rebase mechanism, turn the Boardroom completely off, unlock all xStatic back to Membership holders and shift towards using the Bloomify Performance Fees as a way to reward $Charge stakers.
Announcements and Updates
It is vital in crypto to stay up to date on news and due to the 24/7 pace that crypto moves at, changes happen rapidly. Please stay up to date on all changes by subscribing to our YouTube channel, following the #announcements channel in our Discord or the pinned messages in Telegram.
All links can be found here on our Documents along with all necessary information on how Bloomify works. Once the Fantom (FTM) side of Bloomify is launched, we will migrate over to Bloomify Discord and Telegram servers. Please begin to move and use Bloomify Telegram and Discord only.
Bloomify — Modern Money Management
Bloomify is slated for full release in August 2022. Along with this debut comes revised tokenomics and a shift completely to Bloomify platforms. Yield optimizers are nothing new in cryptocurrency, yet they’ve failed to evolve enough to satisfy the growing needs of users and often can lead to investing behaviors that benefit neither the user nor the protocol they’re investing in. Bloomify was developed to address how to truly assist users in automating savvy decision making to provide optimal results.
What Are Yield Optimizers?
In a traditional yield optimizer users stake Liquidity Provider (LP) tokens in a farm and the yield from the farm is used to buy more LP tokens and those are staked in a closed loop where LP token quantity increases over time. In some situations, stablecoin LPs for example, this might be a great way to accumulate more of a token that won’t typically* lose value as it’s pegged to 1 $USD. However, if a user is investing in an inflationary asset that is continually being printed, the supply will continually increase and the price typically decreases over time. In an LP, an inflationary asset is paired with a stable asset at a 1:1 ratio of both tokens but usually end up with a much larger amount of the inflationary token that is now at a lower value.
LP token quantity has increased, but unless the price increases of the inflationary token, your overall value is less. This may be negative for the user as well as it increases the downward price pressure on the inflationary asset, harming the protocol faster over time.
Why Do People Use Them?
Automating investment seems to be the wisest strategy with the least amount of work and users are drawn to this hands-off approach. With stablecoins, blue chips and even some riskier pairs, yield optimizers can be a great way to increase LP holdings if that is what is desired.
Unfortunately many people don’t fully understand the long term impact of increased LP token quantity, declining APR (as more people enter a liquidity pool or farm), and without the option to take profit — most users neglect to recover their initial investment. Simply because something is a great idea for a limited time while APRs are high or with a stablecoin pair, doesn’t mean it’s good for all LPs, or to do long-term.
Flip through any basic investment guide and you’ll see the same key principles reiterated — concepts like taking profit (TP), recovering your initial investment, using free money (profit after initial investment is recovered) and Dollar Cost Averaging (DCA).
Traditional Yield Optimizers with the simplified 100% reinvestment loop offer a one-size fits all strategy that frankly, doesn’t fit all. Bloomify strives to put these powerful tools within users reach in an easy to understand and automated fashion. With the development and launch of our Accumulators and Profit-Takers users are provided with the option to make choices that may fit a wider array of tokens, situations and needs.
All About Accumulators
Making your money make more money is central to wealth building over time. Using stablecoin pairs to earn more stablecoins is the sole option for a traditional yield optimizer. Yet, what if that yield was used to automatically buy into another LP that was perhaps a Blue Chip pair or a riskier asset? Yield off a stablecoin LP is relatively “free money” that can be used to DCA into something like BTCB-ETH or ETH-BNB, allowing your wallet to accumulate a new position in an asset without exposing yourself to risking fresh funds.
Want to secure a position in a less stable asset but don’t want to (or can’t afford to) add new money? An accumulator is a low-exposure method to do this. Your accumulated LP is staked in a Bank (an autocompounding vault) that also generates yield, sells yield and buys more of the accumulated LP. Essentially we’ve tucked that traditional yield optimizer inside a more complex strategy and automated it for users to socialize gas costs and save time.
Plan on Profit-Taking
Many users can be blinded by high APRs and neglect to take profit, thereby never securing a free position or recovering their initial investment. Repeating this investment pattern over and over again can result in the overall portfolio value declining. Bloomify’s Profit-Takers encourage users to stake a riskier asset in a farm and use the yield to buy into a stablecoin pair that is staked in Bank (an autocompounding vault) that also generates yield, sells yield and buys more of the stable LP. Users may select a Profit-Taker as a means of securing daily passive income, until their initial investment is recovered or to stake a percentage of their overall LP to gain profits.
Tokenomics & Changes
The release of Bloomify brings about the final revision in tokenomics and changes to the existing platforms. Bloomify gives users an opportunity to stake $Charge in Bloomify Farms for a percentage of Performance Fees levied on the Accumulators, Profit-Takers and Vaults. The Performance Fees are paid out to the $Charge stakers in $Static which aids in creating buy pressure for $Static. As $Charge stakers choose between holding, creating LPs and staking or selling $Static, a price stasis will be reached.
$Static can also be used for paying the run fee on Advanced Strategies instead of paying 10% more in $BNB. For those who still hold $Pulse, you may stake in the $Pulse redemption pool and have your $Pulse autoredeemed. Please note previously, a significant portion of users’ $Pulse could be redeemed for $BUSD donated by the team for a long but limited time. For more on Performance Fees, please read here.
*Note: There is risk in all investing including stablecoins.
Useful New Links:
Bloomify Website: https://www.bloomify.co/
Bloomify Twitter: https://twitter.com/BloomifyApp
Bloomify Discord: https://discord.gg/XSfhKpbGkq
Bloomify Telegram: https://t.me/bloomify_community