dForce will be creating a vDF token, it is a receipt of DF staking token, where holders of DF token are able to deposit into staking contract to mint vDF. vDF can be used as general voting vehicle and staking assets and it is also a major vehicle for receiving ecosystem wide incentives.
Once DF staked into vDF, vDF is engineered such that fees from dForce Lending, dForce Trade and Synthetic Asset protocol will be periodically used to be purchase DF in the market and distribute to vDF holders.
DF tokens are utility token and governance tokens which allow:
- For lending protocol and yield markets
a. Participate in governance for listing new asset and determine key risk parameter
b. to receive fees from interest reserve of lending protocol as well as exit fee from yield market.
- For synthetic protocol,
a. To provide the system with collateral to generate synthetic assets
b. To participate in the providing liquidity for the synthetic assets
- For trading protocol,
a. Participate in governance for setting fee policies of the trading protocol as well as key risk parameters
b. to receive fee from trading
Specification of the Tokenomics
Staking Yield: Basic staking yield of 3%-20%. All vDF holders are able to earn the staking yield.
Yield Markets, a 0.1% exit fee will be charged and collected into fee account;
Trading Fee: a 0.1% trading fee in AMM (to be built) will be collected into fee account.
USDx, a 0.1% DF burn is built into the protocol, the burn is global, which will reduce DF’s total outstanding.
Synthetic asset trading fee: 0.1% is charged to give to DF token holders
Synthetic Asset ingredients : vDF is able to be used as collateral to mint synthetic assets in both the Genesis Pool and Synthetic Pool.
Lending Protocol Interest Reserve Capture: 20% of the lending interest reserve will be used to purchase DF and distributed to vDF holders.
Stablecoin Interest: Interest spread from core stablecoin (i.e xUSD, xEUR etc) will be used to purchase DF and distributed to vDF holders.
Franchise Fee Allocation: for projects that utilize our protocol, i.e to open up a NFT synthetic asset platform, of which % of token allocated to vDF token holders
vDF is also whitelisted as collateral to mint all synthetic assets with no fee or interest charges.