PossumPrice

(PSM)

"Positive Sum Finance" is the fundamental philosophy of Possum Labs. Unlike many DeFi protocols that function as "zero-sum" games—where one participant's gain is another's loss—Possum aims to create a system where value is generated for all participants, including depositors, funders, and arbitrageurs. The protocol is designed to facilitate this value creation without extracting protocol fees, ensuring that the benefits of the ecosystem are shared among its users rather than being captured by the platform itself.

No, Possum is not a Layer 1 blockchain; it is a DeFi protocol currently operating on Ethereum L1 and Arbitrum One. To prioritize safety, Possum Labs designed its protocols, such as Possum Core and Portals, as immutable smart contracts. This architecture is intended to minimize governance risk and human interference. While the protocol focuses on structural robustness, users should always remain aware of standard smart contract vulnerabilities and economic risks inherent in decentralized finance.

Possum Portals allow users to deposit assets and claim their future yield instantly instead of waiting for traditional maturation periods. This is facilitated by "Portal Energy" (PE), an internal accounting asset that represents the time-value of a deposit. When a user claims yield upfront, the protocol sells PE for PSM tokens to pay the user immediately. This allows for instant liquidity based on the future earning potential of the deposited capital.

When claiming yield upfront through Portals, a user's deposit is effectively "soft-locked" until the accrued yield matches the amount withdrawn. Similarly, in Possum Core staking, users can choose a commitment period of up to one year to earn Core Fragments (voting power). While funds are not permanently trapped, the "soft-lock" means that withdrawing before the commitment period ends results in forfeiting a portion of the rewards. This encourages long-term alignment between the users and the protocol.

TopCut Finance utilizes a unique vault-backed model rather than a traditional "bet and lose" system. A vault of capital backs the PSM token, and users provide sentiment signals which the vault uses to manage its capital. Holders can convert their PSM for ETH directly from the vault, which establishes a floor price for the asset. This mechanism allows participants to engage in market sentiment tracking without the risk of losing their initial principal investment.

PSM has a fixed total supply of 10 billion tokens. It can be acquired through centralized exchanges like LBank or via decentralized liquidity pools on the Arbitrum network. A unique deflationary aspect of the tokenomics is that when users convert PSM for ETH through the TopCut Vault, those PSM tokens are permanently held in the vault, effectively removing them from circulation. Users can manage their PSM by adding the contract address to their preferred blockchain wallet on either Ethereum or Arbitrum.