Author: Nancy, PANews

In the crypto bear market, all kinds of assets have depreciated significantly, and investors have started the battle to protect their "money bags". In the recent Meme season, compared with most Memecoins that went to zero overnight and Rug in the middle, JayPeggers, an alternative NFT liquidity solution, attracted market attention with the concept of "only rising but not falling" and "tax saving on investment losses", but the project ultimately had low participation due to reasons such as niche concepts and no growth mechanism.

Recently, PANews discovered that an upgraded version of JayPeggers has appeared in the DeFi market. In addition to focusing on "only rising but not falling", Poop also proposed an innovative mechanism of "garbage coin recycling" and wants to become a "scavenger" in the DeFi field.

Can Shitcoin also recover its value?

In the movie "The Richest Man in Xihong City", Wang Duoyu randomly invested in stocks of sunset industries and ended up making 100 million yuan. The unfinished buildings of Zhuang Qiang and Dacongmingtun were transformed into school district houses and made 1 billion yuan. Wang Duoyu spent 10 million to play football with Hengtai and received a donation of 100 million yuan.

But in the real world, the story of "crow turning into phoenix" of junk assets is rarely performed. Especially in the crypto bear market, a large number of projects began to show their true colors after the liquidity feast came to an end, with their actual values ​​greatly reduced and investors' assets severely reduced. However, these investment targets have a long payback cycle, and it is still unclear whether they can survive the long bear market.

There is a famous saying on Wall Street: "Cut the losses and let the profits run." The Shitcoin Recycle function launched by the DeFi protocol Poop fully utilizes the last remaining heat of these assets by "recycling" the crypto assets with low liquidity or even returning to zero in the hands of these investors. After all, the chances of these long-tail, illiquid assets returning in value are slim to none.

According to official documents, the Shitcoin Recycle feature allows users to burn any type of tokens and get $POOP in return through Swap, and now supports more than 100 crypto assets. When the liquidity of a Shitcoin ≥ the required minimum liquidity, the Recycle protocol will convert the Shitcoin into L1 Coin through a smart router, and then use L1 Coin to buy $POOP; when the liquidity of a Shitcoin < the required minimum liquidity, the user needs to pay the L1 coin fee (the fee is the required minimum liquidity 0.001 BNB), and then the Recycle protocol will recycle these Shitcoins, and the user will get $POOP in return.

Of course, users can also use Layer1 tokens (such as BNB and ETH, etc.) directly through Poop to purchase $POOP. As the core of Poop's operating model, $POOP uses an over-collateralized elastic supply mechanism to ensure that $POOP has stable liquidity support, thereby ensuring that $POOP will only rise but not fall compared with the price of Layer 1.

Specifically, the minting and burning of $POOP are supported by the top-up and withdrawal of the Backing Vault composed of L1 tokens. When $POOP is bought or sold, the vault will charge a certain fee from each transaction to ensure 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 there will be in the vault, and the faster the price of $POOP will rise. Even if users sell $POOP, these tokens will be burned directly, and the value of $POOP can still be increased. In addition, Poop also supports users to stake $POOP to obtain rewards.

Poop charges 10% as a handling fee for users’ minting $POOP or burning Shitcoin, of which 60% goes to the Poop treasury, 10% is used for referral rewards, 18% is used for incentive plans (8% LP staking rewards + 10% futures allocation), 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 for minting and all flow into the treasury, and 0.1 BNB will be used for taxes, of which 60% is used to support the treasury, and the rest goes to the development fund. In other words, the treasury has increased its collateral by 0.96 BNB, and this value exceeds the minting value of $POOP of 0.9 BNB, thus ensuring the increase in the POOP/BNB price. Conversely, the destruction mechanism is also the same.

Comes with Meme gameplay, which will be expanded to markets such as Ethereum in the future

With entertainment elements and network effects, Meme has evolved into an important cultural expression and brought crypto assets to a wider group of people. Poop also deliberately incorporated Meme elements into its design. In addition to its absurd and funny appearance, it is easier for users to accept it and also attempts to resonate emotionally with investors.

In fact, the value of a meme depends largely on its degree of spread. In order to increase early spread and achieve a cold start for the product, Poop launched a referral program with an incentive mechanism.

When a user becomes a recommender, the invited user will receive 10% of the income after conducting any buying and selling operations through Poop, and all rewards will be automatically sent to the user's address in the form of Layer1 tokens. For example, after the invited user purchases $POOP worth 10 BNB through the Poop platform, a profit of 1 BNB will be generated, and the recommender will receive a reward of 0.1 BNB.

It is worth mentioning that compared with high FDV VC platform projects, $POOP has no pre-sale and no investors. It will be sold for a limited time at 20:00 on June 28th, Beijing time, and will be publicly sold at 21:00. This fair approach 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, and has been audited by the security agency Peckshield. According to Poop's plan, after BNB Chain, it will also cover more assets and user groups on Ethereum, Arbitrum, Optimism, zkSync and Polygon.

Taken as a whole, mathematics, code, culture and solid liquidity are the elements that Poop needs to create a new paradigm of encryption. It will take time to verify whether Poop can enable Shitcoin to realize its "value" again and create a Meme effect that continues to spread.