LANA Finance — 1st algorithmic stablecoin with collaterals on SOLANA

Crypto users have witnessed a crazy time last year when blockchain projects, either good or evil, bloomed, leading to a highly volatile crypto market recently. The fluctuating situation would make investors feel uneasy as their investments may experience incredibly huge marginal gains and losses. Thus, LANA finance is developed to bring a safe and sound solution for crypto investors, even in undesirable market situations.

LANA finance is the first system built around $LANA — an algorithmic stablecoin pegged to SOL, the official token of the Solana blockchain. Similar to other available stablecoin projects, the algorithm behind LANA acts as a central bank influencing the token supply with open market operations. In detail, the algorithm raises the $LANA supply by providing funds to the market in an expansionary scenario and reduces the circulating amount of $LANA in the event of inflation. Hence, the peg 1:1 between $LANA and $SOL remains balanced. An algorithmic stablecoin is a true and fair representation of decentralization as the code automatically and dynamically influences the supply and demand of the protocol’s token.

Originally, stablecoins (like the widely-known USDT, USDC, BUSD, etc.,) were pegged with strong fiat currencies, mainly the US dollar; however, stablecoin projects have recently been evolving when choosing to peg their tokens to platform tokens (Fantom $FTM, Cronos $CRO,…). LANA is pegged with Solana $SOL as the development team believes Solana will soon become a big player in the crypto world and has chosen to attribute to the richness of the Solana ecosystem. Being the first algorithm stablecoin born and pegged on Solana, LANA aims to provide value to and derive value from the blockchain, offering a new asset to $SOL. Adopting the original idea of its predecessors, LANA is a multi-token protocol with the assembly of three tokens:
- LANA ($LANA);
- LANA Shares ($LSHARE);
- LANA Bonds ($LBOND).

What differentiates LANA from other projects is that LANA is the first ever algorithmic stable DeFi protocol with collaterals on any blockchain. Primary components of the protocol include:
- Treasury: Acts as a central bank intervening and balancing the LANA-SOL peg
- Boardroom: Pays out $LANA for $LSHARE stakers
- Share pools: Provide $LSHARE
- DAO fund: Conducts buybacks and acts as a reserve to help maintain the peg
- Insurance fund: Acts as the backed asset (or the collaterals) for $LANA.

The protocol works around the main token $LANA. When $LANA is over-pegged (meaning an expansionary scenario), the algorithm works to reduce the $LANA price by allowing the treasury to mint more $LANA at a specific percentage of supply in eight-hour blocks (epochs). The allocation of this supply is as follows:
- DAO fund: 20%
- Insurance fund: 20%
- Development and marketing fund: 10%
- Boardroom: 50%

Tokenomics and Distribution:

$LANA:
Initial supply: 10,000 $LANA (8000 $LANA for seeding pools reward, 1000 for marketing and 1000 for operating), distributed in 12 weeks through seeding pools.
(50 LANA/day in the first 2 days. The reward distribution later will be modified to maximise the benefit for stakers during the fair launch)

$LSHARE:
Total supply: 100,000 $LSHARE, vested linearly over 36 months.
Allocation:
Development fund: 10% (equivalent to 10,000 $LSHARE)
DAO fund: 10% (equivalent to 10,000 $LSHARE)
Insurance fund: 10% (equivalent to 10,000 $LSHARE)
Share pool incentives: 70% (equivalent to 70,000 $LSHARE)

Roadmap

As $LANA aims to become the primary utility token of the Solana ecosystem, LANA finance is not merely a DeFi protocol, but it will be developed as an ecosystem running around $LANA. In order to increase the use case of $LANA, the ecosystem will contain DeFi solutions, NFT marketplace, GameFi and MetaVerse applications. LANA Finance will officially be launched and LANA tokens will be issued on Feb 17, 2022.

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LANA Finance — A safe and sound solution for crypto investors

LANA finance is a Solana-based ecosystem developed around $LANA — the first ever algorithmic stablecoin pegged with SOL — to provide professional solutions for crypto enthusiasts and investors.

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