DeFi “Janitor” Poop: Recycling User’s Worthless Tokens to Achieve “Only Upward Movement”

DeFi "Janitor" strategy: recycling tokens to achieve constant growth

In the bear market of cryptocurrency, various assets have depreciated significantly, and investors have begun to defend their money bags. In the recent Meme season, the alternative NFT liquidity solution JayPeggers attracted market attention with the concept of “only rising, not falling” and “tax loss harvesting.” However, the project’s participation was ultimately low due to its niche concept and lack of growth mechanisms.

In the near future, BlockingNews discovered an upgraded version of JayPeggers in the DeFi market. In addition to the main feature of “only rising, not falling,” Poop has also proposed an innovative mechanism for “garbage coin recycling” and aims to become the “cleaner” of the DeFi field.

Can Shitcoin Also Have Value Regression?

In the movie “The Island,” Wang Duoyu casually invested in sunset industry stocks and lost 100 million yuan. Zhuang Qiang and Da Congming’s unfinished building turned into a school district house and earned 1 billion yuan. Wang Duoyu spent 10 million yuan playing soccer with Hengtai and received a donation of 100 million yuan.

However, in the real world, stories of trash assets turning into “Phoenixes” are rare. Especially in the bear market of cryptocurrencies, a large number of projects have begun to reveal their true colors after the liquidity feast, and their actual value has been greatly discounted, causing investors’ assets to shrink significantly. The return cycle of these investment targets is long, and it is uncertain whether they can survive in the bear market.

Wall Street has a famous saying: “Cut losses and let profits run.” The Shitcoin Recycle function of the DeFi protocol Poop fully utilizes the residual heat of these assets by “recycling” these low-liquidity or even zero-value encrypted assets in the hands of investors. After all, the possibility of value regression of these long-tail and illiquid assets is already slim.

According to official documents, the Shitcoin Recycle function allows users to burn any type of token and obtain $POOP as a reward through Swap, and now supports more than 100 encrypted assets. When the liquidity of a Shitcoin is ≥ the required minimum liquidity, the Recycle protocol will convert the Shitcoin into an L1 Coin through a smart router, and then use the L1 Coin to purchase $POOP; when the liquidity of a Shitcoin is < the required minimum liquidity, the user needs to pay the fee of L1 Coin (the fee is the required minimum liquidity of 0.001 BNB), and then the Recycle protocol will recycle these Shitcoins, and the user will get $POOP as a reward.

Users can directly purchase $POOP with Layer1 tokens (such as BNB and ETH) through Poop. As the core of Poop’s operating model, $POOP ensures stable liquidity support by adopting an excess collateral elastic supply mechanism, ensuring that $POOP only rises compared to the price of Layer1.

Specifically, the minting and burning of $POOP are supported by the recharge and withdrawal of L1 tokens in the backing vault. When $POOP is bought or sold, the vault charges a certain fee for each transaction, which ensures that the growth rate of Layer1 tokens in the vault is always greater than the total supply of $POOP. The more contract transactions, the more Layer1 tokens in the vault, and the faster the price of $POOP rises. Even if a user sells $POOP, these tokens will be directly burned, and the value of $POOP can still be increased. In addition, Poop also supports users to stake $POOP to earn rewards.

Poop charges users 10% as a handling fee for minting $POOP or burning Shitcoin, of which 60% goes to the Poop vault, 10% is used for referral rewards, 18% is used for incentive plans (LP staking rewards 8% + futures allocation 10%), 10% goes to the team, and the remaining 2% is distributed to contributors.

For example, when a user pays 1 BNB to mint $POOP, 0.9 BNB will be used to mint coins and all flow into the vault, and 0.1 BNB will be used for taxes. Among them, 60% is used to support the vault, and the rest enters the development fund. That is to say, the vault has increased the value of 0.96 BNB collateral, which exceeds the value of 0.9 BNB of $POOP minting, thus ensuring the rise of the POOP/BNB price. The destruction mechanism is the same in reverse.

Comes with Meme gameplay, and will expand to Ethereum and other markets in the future

With entertainment elements and network effects, Meme has evolved into an important cultural expression and has brought encrypted assets to a wider audience. In the design of Poop, Meme elements are deliberately integrated. In addition to the absurd and funny appearance that is more easily accepted by users, it also attempts to resonate emotionally with investors.

In fact, the value of Meme depends largely on the degree of dissemination. In order to achieve early dissemination and realize the cold start of the product, Poop launched a referral program with incentive mechanism.

Once a user becomes a referrer, they will receive 10% of the income after the invited user completes any trading operations on Poop, and all rewards will be automatically sent to the user’s address in the form of Layer1 tokens. For example, if an invited user buys $POOP worth 10 BNB on the Poop platform, a profit of 1 BNB will be generated, and the referrer will receive a reward of 0.1 BNB.

It is worth mentioning that compared to VC projects with high FDV, $POOP has no presale or investors and will be available for a limited time on June 28, 20:00 Beijing time, with public sales starting at 21:00. This fair method will attract more users to participate.

It should be noted that Poop was created by an anonymous team, which claims to be composed of experienced DeFi developers and crypto Degen. It has also been audited by the security institution Peckshield. According to Poop’s plan, it will expand to Ethereum, Arbitrum, Optimism, zkSync, and Polygon after BNB Chain, covering more assets and user groups.

Overall, mathematics, code, culture, and solid liquidity are the key elements for Poop to create a new paradigm for crypto. However, whether Poop can make Shitcoin realize “value landing” again and create a sustained spread of Meme effects still needs time to verify.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

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