DForce dives into the revamped tokenomics which aligns DF token value accrual more closely with protocol adoption and TVL growth.
Let’s start from introducing the new staking module, where DF holders don’t need to rely on providing liquidity and interacting with our core protocol utility to earn DF yields. The staking will capture all value accrual, including all fees, for DF stakers.
There are three parts related to the flywheel upgrade:
- DF Staking. DF staking will be introduced to provide value accrual for DF holders, capturing all fee incomes across the protocol, as well as PDLP and PCO, on top of systematic DF staking yields. They propose to introduce a hybrid staking model for DF, a combination of staking with and without lock-up periods.
- Treasury-Active-Liquidity-Operation (TALO). The protocol will utilize idle Treasury assets to mint USX within its collateral limit, acquire DF liquidity from the market, and add purchased DF into DF/USX pair to own the liquidity. They also plan to acquire and ultimately own liquidity for other major pairs including USX/USDC, USX/EUX, etc. When the protocol owns majority of the liquidity, there will be no need for liquidity mining incentives for these pairs.
- Treasury-Bonding-Buyout (TBB). At a later stage, they will launch a program to further purchase LP liquidity and other assets held by the market through the sale of DF token with a discount.
dForce is an integrated and interoperable platform of opening finance protocols, covering lending, assets and trading.