Plow Finance uses PFI, an innovative smart contract that redistributes fees generated on the platform to existing token holders automatically. The smart contract applies a 1% fee for every transaction on the platform and splits the yields evenly among all PFI token holders.
The distribution is conducted in an instantaneous manner upon the successful completion of each transaction. This mechanism is specifically developed to ensure equitable yield earning in a truly decentralised approach that upholds the tenets of DeFi.
Most importantly, the smart contract is designed in such a way that it can detect addresses belonging to exchange wallets and liquidity pools and bypass them during the distribution. This ensures that all the fees generated end up in the addresses of token holders only. This ingenious invention enables PFI holders to earn much higher yield as compared to other platforms as distribution is calculated as a percentage of one’s holdings.
The automation enabled by the PFI smart contract means that there is no central party or team responsible for awarding the fees or an interface that holders use to claim their earnings. All that is required is for one to hold PFI tokens and the yields are deposited automatically in their wallets.
Users can further leverage their PFI tokens to earn additional yield from other DeFi platforms without compromising their investment on the Plow Finance platform. This dual yield capability is an additional bonus for PFI token holders as they can earn from third party lending, yield farming or liquidity mining through other smart contracts. This way, Plow Finance epitomises passive income generation capacity in the DeFi sector.