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title: The case for strong pETHOS and pERR pod adoption

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**The case for strong pETHOS and pERR pod adoption**

The pETHOS and pERR pods are utilities for Ethereans $OS and $ERR holders, respectively, on Peapods Finance.

Peapods introduced a new "volatility farming" primitive that generates real yield from crypto's only certainty (volatility). The Peapods design also makes it possible for single asset-depositors (who only 'wrap' to the pod and don't supply liquidity with a paired asset) to share in the volatility farming yield.

The pETHOS and pERR pods present multi-faceted opportunities for supporters of these Ethereans ecosystem projects to benefit both themselves and the projects:

1. *Real yield without exposure to impermanent loss*. Those who wrap into the pods - or purchase the $pETHOS or $pERR pod tokens directly, which may be a more efficient path depending on price and size - will be earning real yield on a single-sided asset, which is a novel feature in DeFi and a great option for token holders.
2. *Signal of conviction*. Since it will not be immedidate for the earned yield to surpass the wrap/unwrap or buy/sell fees to enter and exit the position (yet once this does happen, pETHOS and pERR participants will be earning free and clear real yield on a single-sided asset; e.g. see this MOG POD illustration: https://x.com/curvethots/status/1760399730746786021), podders are demonstrating a form of committment to the token, and these pods may be considered relatively "sticky" homes for $OS and $ERR. Thus, increasingly large pod TVLs are signals of project strength to outside potential investors. And any exits from the pods generate fees for remaining pod holders, further rewarding their conviction.
3. *Awareness magnifier*. The initial pod launches brought fresh waves of co-marketing for the projects. But strong adoption of the pod with high TVL and high APR from combined volatility farming and entry and exit fees would bring additional eyes. For example see this illustration of the success of the pBASED pod, which has been embraced by the PepeCoin (OG) community: https://x.com/PeapodsFinance/status/1760119909542138317
4. *Further adoption across DeFi*. Strong pod adoption will lead other DeFi protocols to take notice of the $OS and $ERR tokens and communities, leading to adoption cascades. Meanwhile, the $pETHOS and $pERR tokens themselves are fully composable, so they represents attractive targets for other DeFi protocols in Lego fashion. For example, holders could borrow stablecoins or $ETH against their yield-bearing $pETHOS and/or $pERR positions.
5. *A high-yield opportunity for LPers*. Some pod participants may choose to pair their $pETHOS or $pERR with $pOHM and stake the resulting spETHOS or spERR LP tokens on Peapods. This LP is the engine that generates the volatility farming revenue for the pods. While needing to consider the potential effects of impermanent loss (which can be used as a tool rather than feared) on their position, LPers are rewarded with deflationary (and arguably undervalued) $PEAS rewards, in addition to the growth of their interest-bearing $pETHOS/ $pERR and $pOHM positions.
6. *Ethereans tech demonstration and novel project revenue stream*. The $pERR pod has a 2.5% partner fee, which is currently directed to a wallet owned by the pod creator 0x7d54. The $pETHOS pod has a 5% partner fee which is currently directed to the $pERR contract as a result of a small mistake on deployment (thankfully, the funds can be periodicaly rescued and directed elsewhere by the Peapods team multisig; note that this function does not represent a rug risk as only non-pod tokens sent to the contract addresses can be rescued in this fashion). Once pod deployment costs are recouped, these fees will be shared equally with the ERROR 404 and Ethereans projects using EthereansOS Organizations tech. Thus, success of these pods will simultaneously serve as sandbox demonstrations for the value of EthereansOS tech to a wide audience and directly benefit the projects in perpetuity.
7. *Team support of the pods and further utility potential*. The Ethereans and ERROR 404 meme coin teams have repeatedly expressed their strong support for the pETHOS and pERR pods, and Ethereans is actively building on top of and with Peapods Finance. The ERROR 404 dev wrapped a substantial amount of the project's treasury to the pERR pod as a show of support and to incentivize wider adoption, and EthereansOS team members wrapped their personal holdings into the pETHOS pod. Team support of pods is a major signal of ultimate pod success, along with strong community adoption. Further structural incentives from the teams for the pods and holders of the pETHOS and pERR tokens are likely in store, given these signals (e.g. with the pTKNs possibly having more utlity or weight [including for airdrops] in the ecosystems than the naked tokens, with likely even extra weight for LP providers). Since earlier pod wrappers receive yield from all subsequent adoption waves and share the volatility farming yield for longer, being at the leading edge of adoption is something to consider.

Peapods Finance site with link to app and docs: https://peapods.finance/

Introduction to Peapods Finance: https://x.com/0x7d54/status/1748356483627044971

pERR pod launch announcement: https://x.com/0x7d54/status/1757843065073479928

EthereansOS project-level support for pERR pod: https://x.com/ethereansOS/status/1759076468511133816

ERROR 404 project-level support for pERR pod: https://x.com/err404meme/status/1758223475075125480

Peapods project-level appreciation for ERROR 404 project support of the pERR pod: https://x.com/PeapodsFinance/status/1758604900257484813

pETHOS pod launch announcement: https://x.com/0x7d54/status/1759413328214966531

EthereansOS project-level support for pETHOS pod: https://x.com/ethereansOS/status/1759670093343285604

EthereansOS team member support for pETHOS pod: https://x.com/jpn_memelord/status/1759670572412191079

Primer on impermanent loss (only relevant for those considering providing LP): https://academy.binance.com/en/articles/impermanent-loss-explained

There is always smart contract risk in DeFi. For their v2 release, the Peapods Finance team sought review of their smart contracts in multiple forms, including two completed audits, a bug bounty program, and independent code reviews by security experts. Here is the detailed audit report from Yearn Finance's yAudit, a premier auditing organization: https://reports.yaudit.dev/reports/01-2024-Peapods/