# Introduction Welcome to the Poison Finance Docs ## What is Poison Finance? Poison Finance is a Decentralized Multi-chain Synthetic Assets (Potions) issuance protocol built on Arbitrum, Binance Smart Chain, and soon Ethereum mainnet and more. Synthetic Potions (pTokens) are collateralized primarily by stablecoins like BUSD, USDT, USDC, DAI, and FRAX which, when locked in the Vault Contract, enable the issuance of Potions. Synthetic Potions mimic the price behavior of real-world assets like stocks, commodities, and ETFs - giving traders anywhere in the world open access to price exposure without the implications of owning or trading real assets. The minting of Potions is decentralized and is handled by users of the protocol alone. Poison Finance ensures that there is always sufficient collateral within the protocol to cover Potion value. The Poison Token (POI$ON) is minted by the protocol according to its vesting schedule and distributed as an award to support conduct that secures the ecosystem. Poison Protocol ensures liquid Potion markets by rewarding POI$ON to users who stake LPs obtained through providing liquidity to decentralized exchanges. Moreover, POI$ON is valuable as it can be staked to receive voting privileges and to earn a share of the protocol's Vault withdrawal and liquidation fees by wrapping it into iPOISON. Poison is a project developed and steered by its community. Its markets are maintained by its own users through POI$ON incentives, and the protocol evolves with new ideas through democratic governance. # Mission Our mission is simple - to Poison finance in the best way possible! Stable and decentralized digital synthetic assets have immense **potential to democratize** finance and bring fairness to parts of the world that don’t have access to quality, low-volatility assets. The potential market for collateralized synthetic assets is enormous. It is imperative we continue moving the synthetic assets sector forward! Poison Finance is on a mission to democratize finance for **ALL.** We propose that in order to achieve 100% compliance with our objectives, promote a healthy ecosystem, and maximize profits, we need to optimize along six main features of the synthetic asset system: * Stability * Transparency * Decentralization * Scalability * Security * Adaptability Let’s take a look at a few existing (and past) synthetic asset systems: **Synthetix** is a widely adopted decentralized, over-collateralized synthetics issuance protocol. It is stable and (somewhat) decentralized, but difficult to scale due to its over-collateralization model. Synthetics is not capital efficient and is also prone to administrative over-sight. Faced with regulatory scrutiny it had to delist and stop trading all collateralized commodities, stocks, and ETFs. **Mirror** was a collateralized synthetics issuance protocol on Terra blockchain. It looked decentralized, but when Terra's stablecoin UST collapsed, the true nature of reliance on closed ecosystems was revealed. Though at one point it produced over $1 million in protocol fees alone, Mirror imploded from within. In the end, the Oracle stoped reporting price feeds and the music stopped. Moreover, due to the closed nature of the protocol, there was zero transparency or accountability for user funds. **FTX** was a centralized crypto and derivatives exchange that at one point tried to monetize synthetic assets, but under the guise of being a reputable and regulated entity. As fate would have it, not only would FTX fail to monetize synthetic assets in any meaningful way, but it would also fail entirely - with its founder and CEO behind bars for mismanagement of user funds. **How is Poi$on different?** 1. Stable - Due to its multi-chain nature and its collateral variety of different stablecoins, volatile assets, and interest bearing tokens, it maintains no dependence on any one asset. 2. Transparent - All collateral **on chain** is not used for any other purpose**,** the protocol is immutable. Contract is the law! 3. Decentralized - From the start there is no central governing authority. The code is delivered before the commencement of the protocol. There is no owner, no founders, and no team tokens. All functions of the protocol are undertaken by users in the name of profit only! 4. Scalable - Due to the protocol's multi-chain nature, we will be able to achieve not only lower collateralization ratios but also greater capital efficiency. 5. Secured through code immutability and decentralization. 6. Adaptability - The protocol has the ability to move to the most profitable markets in the blink of an eye, even across chain. No dependence on one oracle protocol. Now lets grade the protocols:
FeaturePOI$ONSNXMirrorFTX
StabilityAFFF
TransparencyAFFF
DecentralizationAFFF
ScalabilityAFFF
SecurityAFFF
AdaptabilityAFFF
**Let's POI$ON Finance!** # User Roles While you can find these roles in Discord as well, they primarily describe how users interact with the protocol. ## Protocol Participants In Poison Ecosystem, users act in one or more of the following roles: * Trader - Uncle * Minter & Shorter - Cook * Liquidity Provider - Wizard * Staker - King * Liquidator - Shark There are other special auxiliary agents that are required for Poison contracts - Oracle ### **Uncle** The Uncle engages in buying and selling pTokens on decentralized exchanges and benefits from price exposure via pTokens. ### **Cook** The Cook is a user who enters into a collateralized debt position (CDP) in order to obtain newly minted pTokens by depositing collateral into the Vault. ### Wizard The Wizard provides liquidity to decentralized exchanges by pairing pTokens and the trading token such as USDC or ETH and receiving an LP (Uniswap) or SLP (Sushiswap) tokens in return. Certain LP and SLP tokens may be staked in the Brew tab to earn yield in the form of POI$ON. ### King The King is a user who stakes either pTokens, iPOISON, or LP/SLP tokens in the Brew tab to earn yield in the form of POI$ON. ### Shark The Shark is an experienced smart contract sleuth that hunts for Potion vaults with low collateral ratios so that they can be liquidated for a hefty discount. **All printing brrrrr.** # FAQ Get your poisonous questions answered here.
What is Poison Finance? Poison Finance protocol is a system of decentralized, trust-less smart contracts deployed on Arbitrum and Binance Smart Chain.
What are Synthetic Assets (Potions/pTokens)? The point of Synthetic Potions is to imitate the value patterns of real-world, exchange-traded, underlying assets like stocks, commodities, and ETFs. Although Potions closely represent the price movements of underlying assets, users are not afforded any rights of the underlying companies, commodities, or ETFs.
Do I have to go through a KYC/AML process? Poison Finance protocol is a collection of smart contracts deployed on Arbitrum and Binance Smart Chain and have no owner. All actions are undertaken by the users of the protocol. As long as you have one of the supported tokens to use as collateral in Potion vaults, you are able to perform all functions available on the Poison Finance smart contracts. Please use due diligence and consult your local laws before using this software.
How do price feeds get their data? Poison Finance uses two primary oracle providers for price feeds - [Chainlink](https://chain.link/) and [Pyth](https://pyth.network/). Price Feeds are aggregated from many data sources by a decentralized set of independent node operators.
Is Poison Finance audited? Yes, the primary vault contract has been audited by Solidity Finance. You can read the audit [here](https://solidity.finance/audits/PotionVault/).
Why can't I withdraw, mint, or close my vault? pTokens may only be minted and burned during New York Stock Exchange hours (9:30am - 5pm EST). This is to prevent too great of price discrepancy during market close.
# How to Use {% hint style="info" %} This section is being brewed! {% endhint %} # Synthetic Potions Synthetic Potions are ERC-20 standard tokens that track the prices of real stocks, commodities, ETFs, and other assets. ## Potions (pTokens) pTokens are ERC-20 and BEP-20 compatible tokens. As such can be traded or swapped on any decentralized or centralized exchange. pTokens possess the following properties: #### Name & Symbol Describes the underlying real-world Stock the pToken is supposed to track. Apple, Google, Microsoft, Tesla, Meta and more. #### Minimum Collateral Ratio A Vault that mints the pToken cannot have a collateral ratio below this value, otherwise it will be subject to liquidation. pGOLD and pSLVR have a liquidation ratio of 130%, while all other pTokens have a liquidation ratio of 150%. If your Vault's ratio falls below these values, your collateral is at risk of liquidation. #### Price pTokens are designed to be as decentralized as possible. Poison protocol gets underline stock prices from Chainlink decentralized price oracles . Oracle Prices are used exclusively for determining collateral ratio of the Vault and do not affect pToken trading prices on decentralized or centralized exchanges. #### Liquidation Discount Rate For a VAULT subject to liquidation, describes the discount for which its collateral can be purchased. ## Vaults New tokens for a listed pToken can be minted by opening a vault with any [supported collateral token](/appendix/supported-collateral-tokens). The vault is essentially a short position against the price movement of the reflected asset, if the price of the asset rises, minters of the pToken would be pressured to deposit more collateral to maintain the collateral ratio. ### Collateral Ratio The collateral ratio (Cratio) is simply the ratio of the value of a Vault's locked collateral to the value of its current minted tokens. `cRatio = collateral / pToken amount * pToken price` As a general rule a vault should always maintain Cratio above 150%, except for pGOLD and pSLVR, which have a minimum ratio of 130%. ### Vault Operations Only one operation per block is allowed. The exception to this is that when closing a vault while holding sufficient pTokens, any pTokens are burned and collateral is withdrawn automatically. In this way you can combine the Burn and Withdraw transactions. #### Opening a Vault Users are allowed to set the initial Cratio for their Vaults as long as it meets or exceeds the mandated minimum collateral ratio (minCratio). Poison protocol calculates maximum amount (maxAmount) of pTokens that can be minted and issues pTokens up to maxAmount. `maxAmount = collateral / minCration * 100 / pToken price` #### Deposit With an existing Vault, the user can deposit additional collateral to raise its effective Cratio. #### Withdraw The user can withdraw collateral against the Vault to adjust the value of their Vault's effective Cratio. The user can only withdraw up to maxAmount that is needed to maintain the Vault's effective Cratio above the minCratio. `maxAmount = (collateral / minCratio * 100) - (pToken amount * pToken price) * minCratio / 100` #### Mint The user can also mint pToken against the Vault to adjust the value of their Vault's effective Cratio. The user can only mint up to maxAmount that is needed to maintain the Vault's effective Cratio above the minCratio. `maxAmount = (collateral / minCratio * 100) - (pToken amount * pToken price) / pToken price` #### Burn In addition to deposit operation, with an existing Vault, the user can burn pTokens to raise its effective Cratio. #### Close If a user wishes to collect all their collateral from the Vault, they must close their position by returning the outstanding balance of minted pTokens, which the protocol will burn. The user will be then be able to withdraw their locked collateral. If you hold all minted pTokens, Closing the vault will automatically burn all pTokens and withdraw collateral. #### Liquidate A Vault can be liquidated when it falls below the minimum collateral ratio. At this time, if the owner does not quickly act and deposit more collateral or burn pTokens to deleverage their position, other users may purchase their Vault's collateral at a discount, by burning outstanding balance of minted pTokens. ### Protocol Fee The Poison protocol fee is charged whenever a withdrawal from a Vault is made (including closing the Vault). Also the fee is charged during liquidation. This fee is then converted into POI$ON half burned and the rest is distributed as LP rewards through Master Castle. Currently closing a vault is a 1% fee, while liquidations generate a 2% fee. # Potion Peg pTokens are soft pegged to the oracle price, which means that the Poison protocol does not directly rely on price oracles to determine the trading prices of pTokens. Instead, Poison relies on a combination of the minting liquidation process, arbitrageurs, and governance changes to keep pToken prices close to oracle prices. **Minting Liquidation** As the price of an asset XXX rises on the MARKET, minted pXXX may fall below the minimum collateral ratio (MCR) and trigger a liquidation event. When that happens, the Poison protocol will automatically sell collateral to buy pXXX until the collateral ratio reaches the MCR again. This buying pressure created for pXXX will drive prices higher and will help the price of pXXX converge with the price on the MARKET. **Arbitrageurs** If the price of XXX on the MARKET were $1000, but the price of pXXX on Poison were $900, an arbitrageur would buy the asset with the assumption that in the near future, with enough buying pressure, the pXXX price would eventually converge to the MARKET price of $1000. At that point, the arbitrageur would then sell pXXX at $1000, taking a profit of $100 per share. Similarly, if the price of XXX on the MARKET were $1000, but the price of pXXX on Poison were $1100, an arbitrageur would provide collateral, mint the pXXX asset, and sell it at $1100 with the assumption that in the near future, with enough selling pressure, the pXXX price would eventually converge to the MARKET price of $1000. At that point, the arbitrageur would then repurchase pXXX at $1000 and then burn it to regain their collateral, taking a profit of $100 per share.\ \ You can also find arbitrage bots in our Discord to keep tabs on price differences. **Governance And Magic ....** # Poison Token (POI$ON)
The Poison Token (POI$ON) is Poison Protocol's multichain governance utility and rewards token. It must be staked to vote on active polls and will be required as a deposit for making new governance polls (official governance is not yet active) . POI$ON is provided as an incentive for users to farm rewards by staking LP tokens **-** minted by providing liquidity for POI$ON and Potions. Yield is paid to the users from POI$ON that are newly minted in the MasterCastle through annual inflation, which gradually increases the total supply of POI$ON until the end of 4th year. {% hint style="warning" %} Because of the importance of POI$ON Token for Poison.Finance ecosystem it is imperative to ensure a certain degree of decentralization. As a consequence of that there will not be any team tokens issued, after the Private sale ends developers will not have any special control over token minting or distribution. {% endhint %} ## Staking Rewards {% hint style="info" %} This section discusses staking rewards for POI$ON tokens, which come from trading fees. Staking LP tokens also generates POI$ON rewards, which come directly from new POI$ON tokens created every block. {% endhint %} ### From Protocol Fees Currently protocol fees generated from vault closures and liquidations are used to buy back POISON from the market, which is then placed in the iPOISON contract, causing the ratio of POISON to iPOISON to increase. This system is similar to the SUSHI/xSUSHI reward system of Sushiswap. Eventually, POI$ON token stakers will receive USDC token rewards every block, which are generated from protocol fees from Vault withdrawals. The protocol fees will be collected from Vault collateral and are sold for USDC. The USDC tokens are then distributed as rewards to POI$ON stakers in proportion to the percentage of total stake generating so called "Real Yield" for POISON stakers based on protocol fee generation. ### From Poll Creation Fees Whenever a new governance poll is created, an initial deposit of POI$ON tokens must be paid. If the poll does not reach voting quorum, this deposit is distributed to all POI$ON stakers proportionately. # Tokenomics ### The tokenomics of **POI$ON** can be broken down as follows * **Ticker: POI$ON** * **Contract address:** See the [Contract List](/smart-contracts/contract-list) * **Chain:** Arbitrum, BSC, and others * **Total Supply: 10,610,000** **POI$ON** * **Initial Supply**: 2,250,000 * There will be 3 **POI$ON** minted per Ethereum Block for the first 1 month and 1 **POI$ON** tokens minted per block afterwards for 4 years. Minting will be split between 3 chains Ethereum, Bsc, Arbitrum. ### Uniswap Liquidity * **Ticker: POI$ON** * **Contract address:** 0xa74eceae9c7670b019e0890881598b4c398d1c01 * **Chain:** Arbitrum * **Supply:** 750,000 * **Listing Price:** $0.04 ## **POI$ON Token Supply** There will be a total of **10,660,000** **POI$ON** to be brewed over 4 years. After that MasterCastle will stop minting new **POI$ON** and only store them for distribution. ### Cumulative Distribution Schedule (in millions) | ​ | LGE | Y1 | Y2 | Y3 | Y4 | | -------------------------------- | -------- | -------- | -------- | -------- | --------- | | Private Sale | 0.5 | 0 | 0 | 0 | 0 | | Public Sale (ILO) | 1 | 0 | 0 | 0 | 0 | | Uniswap Liquidity | 0.75 | 0 | 0 | 0 | 0 | | pToken and **POI$ON** LP staking | **0** | 3.01 | 2.6 | 1.9 | 0.9 | | **Token supply** | **2.25** | **5.26** | **7.86** | **8.76** | **10.66** | | Annual inflation (%) | - | 42% | 27.08% | 21.29% | 17.77% | Total of 2.25**M** tokens will be available at Liquidity Generation Event. The distribution of these tokens will be made as below. For more info on these token sales, please see the [public and private sale](/appendix/public-and-private-sale-info) info. * **Strategic sale**: 23% (0.5M) tokens will be allocated for Private Sale. Because of the initial investment these tokens are the same as public price for strategic investors who will help with the initial growth of the project. Funds transferred to the developer fund will be used for development of the system, advertising and marketing, airdrops, sponsoring new information websites for the ecosystem. * **Public Sale**: 44% (1M) tokens will be allocated for public sale. All funds going to Uniswap Liquidity. * **Uniswap Liquidity**: 33.5% (0.75M) At the end of Public Sale will be used for Liquidity Generation on Uniswap. Total supply of **POI$ON** tokens will increase for 4 years due to inflation, until the total token supply becomes **10.66M**. The distribution structure at the end of year 4 will look like the below: * **Strategic Sale**: 4% (0.5M) tokens will be allocated for Private Sale. Because of the initial investment these tokens are the same as public price for strategic investors who will help with the initial growth of the project. Funds transferred to the developer fund will be used for development of the system, advertising and marketing, airdrops, sponsoring new information websites for the ecosystem. * **Public Sale**: 8% (1M) tokens will be allocated for public sale. All funds going to Uniswap Liquidity. * **Uniswap Liquidity**: 6% (0.75) tokens will be allocated for public sale. All funds going to Uniswap liquidity. * **Potion and POI$ON LP Staking:** 82% (10.36M) minted over 4 years. Distributed **ONLY** as an award to support conduct that secures the ecosystem. # Multichain Access Poison Protocol is a multi-chain DeFi protocol, meaning that it interact with other decentralized applications across multiple blockchains as well as by accessed by users on various networks. All Poison Finance tokens are compatible. [Multichain](https://multichain.org/) provides web interface to transfer tokens between different blockchains. Starting off with Arbitrum, BSC, and Ethereum, we will eventually move to incorporate other chains. # Contract List This page contains any and all contract address in the Poison Finance ecosystem. {% hint style="info" %} Please use the tabs below to select the chain you wish to view contracts for. {% endhint %} {% tabs %} {% tab title="Arbitrum" %} ## Protocol Contracts These are the contract addresses for all smart contracts providing protocol functionality such as vaults, staking, and deployment.
NameContract
Potion Vaults (Minting pTokens)0xd5e31fc5f4a009A49312C20742DF187b35975528
Master Castle (Brew Staking)0x1b1Eb8CCC251deb3abD971B12bD8f34ac2A9a608
Poison Deployer (Developer Contract)0xA48174ed840010FBD9AA3fd8BDB6F38834258c88
## Token Contracts These are the contract addresses of all tokens in the Poison Finance ecosystem.
NameContract
POI$ON0x31C91D8Fb96BfF40955DD2dbc909B36E8b104Dde
iPOI$ON0xDA016d31f2B52C73D7c1956E955ae8A507b305bB
pGOLD0xF602A45812040D90B202355bdc05438918CD3FE3
pSLVR0x867B1Cd06039Eb70385788a048B57F6d4fDC5Dbb
pOIL0xb816688E4B70C9076BD87d45b5309F205ec2cf5f
pTSLA0x8DCD3393a6e48E898A60e05baeC0d568df128F89
pAMZN0xE656165d39419C03D588515c835d109E19221e1E
pAAPL0xf8f636BB3Be1fEEB979E1ea281389b49CF3a6853
pGOOG0x50dCCF0C594a0d7D09a09358bC570bB61b3A603f
pMSFT0xF7D639B461465537eAa94Ef6d5A67c967384933d
## Trading Pair Contracts
NameContract
POISON/USDC0xa74eceae9c7670b019e0890881598b4c398d1c01
pGOLD/USDC0xB5d8DF1D117C4E92dD481FD3E4c1C5857767f9fe
pSLVR/USDC0x5f586464c9DF5cA0C685798B4Fa092136f087BEc
pOIL/USDC0xb63E561193FAbD5482761c7aCC0711D7B784f845
pTSLA/USDC0x00468cd187492080C66A96F28581881fC306f851
pAMZN0x9B915D6eA56a7aBf03A96615AC76dFF2fD9dd60c
pAAPL0x410B7C383a0dF3c56C63E44b2e4Cb752A1350b32
pGOOG/USDC0xAc06479f13B6a4960a09B70Fe74e8e099c4e19FC
pMSFT/USDC0xE355431B99378326B041f1AB5858d50460662584
{% endtab %} {% tab title="Binance Smart Chain" %} ## Protocol Contracts These are the contract addresses for all smart contracts providing protocol functionality such as vaults, staking, and deployment.
NameContract
Potion Vaults (Minting pTokens)0xd5e31fc5f4a009A49312C20742DF187b35975528
Master Castle (Brew Staking)0xea6020439A9b1e6F0949e099233d052Aefef207f
Poison Deployer (Developer Contract)0xA48174ed840010FBD9AA3fd8BDB6F38834258c88
## ## Token Contracts These are the contract addresses of all tokens in the Poison Finance ecosystem.
NameContract
POI$ON0x31C91D8Fb96BfF40955DD2dbc909B36E8b104Dde
POI$ON/USDC (Uniswap)0x0F0dAB368230F0FC657496D5994361B971b69e44
iPOI$ON0x04fCB69aa48f9151741A5D238b5c3cDb2A788e05
pGOLD0xF602A45812040D90B202355bdc05438918CD3FE3
pSLVR0x2e8eC04c3eaB2B19B48035afa7e703E6219481F8
pOIL0x92dF0C32eeD91506E2609CD44f5aDF1A677547b4
pTSLA0x8DCD3393a6e48E898A60e05baeC0d568df128F89
pAMZN0xE656165d39419C03D588515c835d109E19221e1E
pAAPL0xf8f636BB3Be1fEEB979E1ea281389b49CF3a6853
pGOOG0x50dCCF0C594a0d7D09a09358bC570bB61b3A603f
pMSFT0xF7D639B461465537eAa94Ef6d5A67c967384933d
pCOIN
pMETA
{% endtab %} {% endtabs %} # Potion Vault The Potion Vault contract is the heart of Poison Finance - allowing users to mint new pTokens. {% hint style="info" %} This contract has been audited by Solidity Finance. You can view the audit [here](https://solidity.finance/audits/PotionVault/). {% endhint %} The PotionVault is the main Poison.Finance contract, it implements the logic for Vault, through which users can mint new pTokens against their [supported collateral tokens](/appendix/supported-collateral-tokens). Current prices of minted pTokens are provided by Chainlink Price Oracles and determine the Cratio of each Vault. The PotionVault Contract also contains the logic for liquidating Vaults with Cratios below the minimum for their minted pTokens. ``` interface IPotionVault { function open(uint collateral, uint amount, uint id, uint synid) external; function close(uint id) external; function deposit(uint id, uint collateral) external; function withdraw(uint id, uint amount) external; function burn(uint id, uint amount) external; function mint(uint id, uint amount) external; function liquidate(uint id, address account, uint amount) external; } ``` # Information and Social Links * Telegram - * Discord - * Twitter - * Medium - * Website - * Crew3 - [https://crew3.xyz/c/poisonfinance/](https://crew3.xyz/c/poisonfinance/invite/PEda9hydhmeDoQT19C70g) * DeFiLlama - * CoinMarketCap - * CoinGecko - * Dexscreener - * DexTools - # Supported Collateral Tokens This page shows all of the currently supported collateral tokens for Vaults on various chains. {% hint style="info" %} Please use the tabs below to select the chain you wish to view contracts for. {% endhint %} {% tabs %} {% tab title="Arbitrum" %} * USDC * USDT * DAI * FRAX {% endtab %} {% tab title="Binance Smart Chain" %} * USDC * USDT * DAI * FRAX {% endtab %} {% endtabs %} # Public and Private Sale Info {% hint style="info" %} The Private and Public Sales are now over. Please purchase POISON from the open market. {% endhint %} ### Private Sale * **Ticker: POI$ON** * **Contract address:** 0x10a34a54918d9b5c5d0efb82357f12adffa07a1c * **Chain:** Ethereum, Arbitrum * **Start:** 12/15/2022 * **Supply:** 500,000 * **Price:** $0.02 ### Public Sale ILO * **Ticker: POI$ON** * **Contract address:** 0x10a34a54918d9b5c5d0efb82357f12adffa07a1c * **Chain:** Arbitrum * **Start:** 12/30/2022 * **Supply:** 1**,**000,000 * **Price:** $0.03