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# PICA Use Cases

Picasso was born on Kusama. The vision was to introduce the world to cross-ecosystem IBC, and build a flourishing ecosystem within the Polkadot ecosystem. However, whilst on this journey to bring IBC to multiple ecosystems, [Composable Cosmos](../composable-cosmos.md) was launched, to facilitate the flow of assets beyond the Polkadot verse.
Picasso and PICA powers the IBC Hub, as they are positioned to be the network and native token for cross-ecosystem-IBC transfer activity. The vision is to support cross-chain interaction and execution on MANTIS to abstract the UX of having to individually navigate between dApps and chains in a secure manner.

And so, PICA was born a natively cross-chain token. Powering multiple chains. Additional value will accrue to the token based on the success of IBC's ongoing cross-pollination efforts. PICA is the native token of [Picasso](../picasso-parachain-overview.md) and [Composable Cosmos](../composable-cosmos.md).
PICA serves as a natively cross-chain token. Powering multiple chains. Value is accrued to stakers via revenue distribution based on the success of IBC's ongoing cross-pollination efforts and the Generalized Restaking layer. PICA is the native token of [Picasso](../picasso-parachain-overview.md) and [Composable Cosmos](../composable-cosmos.md).

A concerted effort has been made to ensure that the PICA token holds as much utility as possible by incorporating various value accrual methods and governance features. While the PICA token provides rewards for participating within the ecosystem, it is also fundamental for the operation of collators, validators, oracles, and other cross-ecosystem strategies.
A concerted effort has been made to ensure that the PICA token holds as much utility as possible by incorporating various value accrual methods and governance features. While the PICA token provides rewards for participating within the ecosystem, it is also fundamental for the operation of collators, validators, oracles, and other cross-ecosystem infrastructure operators.

## What is $PICA used for?
A summary of PICA use cases is as follows:

- Collator staking on Picasso
- Apollo staking
- Revenue sharing for:
- Bridging activity
- AVS activity
- Liquid staking DOT
- Validator Staking
- Liquid staking revenue (coming soon)
- Bridging revenue (coming soon)
- Collator staking
- Apollo staking

## Tri-staking token model

Within the Picasso ecosystem there are multiple staking avenues that can be utilized to earn yield in PICA. This tri-staking model strengthens the security of the network while maintaining liquidity and distributing maximum value back to Picasso token holders.

### Composable Cosmos staking
PICA is used to secure the [Composable Cosmos chain](../composable-cosmos.md). This is the first instance of a token being utilized for validation within both the Kusama and Cosmos ecosystems and highlights the critical role PICA plays within cross-ecosystem communication.

#### Bridging Fees Distribution
A percentage of the bridging fees generated by each new IBC connection involving Picasso will be allocated to [stakers of PICA on Composable Cosmos](/docs/docs/user-guides/composable-cosmos-staking.md). At present, stakers receive rewards from the Polkadot-Cosmos IBC connection.

With the introduction of Solana and Ethereum IBC connections in Q1 of 2024, 20% of the bridging fees from these connections will be distributed to PICA stakers.

#### AVS Payment Distribution
The Generalized Restaking Layer will secure the launches and activity of various Actively Validated Services (AVS) enhancing revenue generation for PICA stakers. A portion of the revenue, specifically 20%, will be directed towards PICA stakers. The initial AVS to be launched will be the Guest blockchain on Solana, which facilitates the Solana IBC connection.

#### Polkadot Liquid Staking
Composable launched Liquid Staked DOT (LSDOT) on [trustless.zone](https://app.trustless.zone/stake/), a liquid staked derivative for Polkadot's native token. Revenue from this activity will flow to PICA, providing yield emissions from liquid staking, but only while stakings are locked. The value accrual for liquid staking is a 1% fee + 75% of 10% of the yield generated.

:::tip
Follow [this guide](https://docs.composable.finance/user-guides/composable-cosmos-staking) to stake PICA on Composable Cosmos and earn rewards through various protocol revenue streams.
:::

### Oracle staking​
Apollo is a permissionless, MEV-resistant oracle solution. Anyone can run an oracle node on Picasso by providing stake in PICA.

### Collator staking​
25% of fees on Picasso are distributed to collators, with the remaining 75% going directly to the community-governed treasury. Collators on Picasso are required to put down a stake to produce blocks on our parachain, as with most proof of stake networks.

### Composable Cosmos staking
PICA is also used to secure the Composable Cosmos chain. This is the first instance of a token being utilized for validation within both the Kusama and Cosmos ecosystems and highlights the critical role PICA plays within cross-ecosystem communication. The Delegation Program sources 1bn PICA tokens from the Picasso Treasury to validators to ensure a robust and secure network while aiming to provide a ~10% APR in PICA with the initial reward pool.

A percentage of the bridging fees generated by each new IBC connection involving Picasso will be allocated to [stakers of PICA on Composable Cosmos](/docs/docs/user-guides/composable-cosmos-staking.md). At present, stakers receive rewards from the Polkadot-Cosmos IBC connection. With the introduction of Solana and Ethereum IBC connections in Q1 of 2024, 20% of the bridging fees from these connections will be distributed to PICA stakers. Additionally, distribution of fees from Polkadot Liquid Staking is also planned for these stakers.
25% of fees on Picasso are distributed to collators, with the remaining 75% going directly to the community-governed treasury. Collators on Picasso are required to put down a stake to produce blocks on [Picasso](../picasso-parachain-overview.md), as with most proof of stake networks.

## Polkadot Liquid Staking
Composable launched Liquid Staked DOT (LSDOT) on [trustless.zone](https://app.trustless.zone/stake/), a liquid staked token for Polkadot's native token. Revenue from this activity will flow to PICA, providing yield emissions from liquid staking, but only while stakings are locked. The value accrual for liquid staking is a 1% fee + 75% of 10% of the yield generated.


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## The first cross-ecosystem token
As Picasso plays a pivotal role in both our Kusama and Cosmos strategies, PICA will be utilized across both ecosystems as we continue to explore new use cases and integrations.
As Picasso plays a pivotal role on Cosmos and Kusama, PICA will be utilized across both ecosystems as new use cases and integrations are established.

### Gas (network usage)​
The PICA token is uniquely positioned as the gas token at the center of Picasso, powering Composable’s efforts to enhance blockchain interoperability. PICA will also act as the gas token for the CosmWasm dApps deployed on the `ccw-vm` on Picasso. Notably, in order to further support users from other ecosystems Picasso offers a feature called “bring your own gas” (BYOG), which allows users to pay their gas fee in any supported tokens.
The PICA token is uniquely positioned as the gas token at the center of Picasso, powering Composable’s efforts to enhance blockchain interoperability. PICA will also act as the gas token for the CosmWasm dApps deployed on the `ccw-vm` on Picasso.

All fees may change dynamically depending on network load and pool or protocol fee formulas. The most fundamental factor for gas fees is the computational resources it consumes which is represented as the transaction's "weight". The weight of a transaction is converted into an appropriate amount of PICA by the polynomial formula which changes dynamically depending on the target load of the network. This means as the usage of the chain increases towards maximum capacity, the price of a unit of weight increases as well.

### Primary pairing on Pablo​

Pablo is the native DEX of the Picasso ecosystem and is integrated directly into the runtime of our parachain as a pallet. As such, a primary trading pair on Pablo will be PICA. You can also expect various liquidity incentives with 15% of PICA’s supply being allocated towards liquidity programs.

### Powering advancements in the Cosmos
New use cases will continue to be established as we move forward with HRMP channel openings and expansion into and beyond the Cosmos.

## Governance

Picasso is waging war on centralization with a vision of a seamlessly interoperable, trustless future for DeFi. As such the PICA token will play an important role in helping to realize this vision, as governance is powered by phase 2 of Picasso's [OpenGov](./governance.md).
In pursuit of a trustless and interoperable vision, PICA plays a crucial role, as [governance on Picasso](../picasso/governance.md) is operating OpenGov phase 2.

As PICA also serves as the native token of Composable Cosmos, it is required for governance of [Composable Cosmos](../composable-cosmos.md) aswell.
Additionally, as PICA serves as the native token of Composable Cosmos, it is essential for governance on the [Composable Cosmos](../composable-cosmos.md) chain as well.

## Where is PICA available?

Since its launch, the PICA token has been made available across a number of different blockchain ecosystems thanks to Composable IBC. Therefore, PICA can be acquired on Composable’s own [Pablo DEX](https://app.pablo.finance/) on Picasso and the [Osmosis DEX](https://app.osmosis.zone/).
Since its launch, the PICA token is available on Composable’s own [Pablo DEX](https://app.pablo.finance/) on Picasso and the [Osmosis DEX](https://app.osmosis.zone/).

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