dForce V3 – the Grand Upgrade and Tokenomics Flywheel

We built out dForce into a protocol matrix achieved notable milestones this year by building the three protocols primitive; USX as the first pool-based native decentralized stablecoin, a general lending protocol, and a synthetic protocol. We also went multichain and deployed all key protocols across Ethereum, Arbitrum, Optimism and BSC.

The DeFi landscape shifted dramatically over the past year, with more Web3 primitives such as GameFi, SocialFi etc entering the horizon. dForce’s mission has always been about building the layer0 open network, first starting out as a DeFi protocol and now embracing the key Web3 and metaverse primitives.

As DeFi evolved into a complex multichain world, we needed to ensure dForce always stays on top of the game. We are going to go deeper into the unchartered waters by expanding the current existing dForce protocol. In V3, we are bringing a series of new features and tokenomics revamp that we would like to put up for community discussion and eventually for governance voting.

dForce currently has three major protocols, including decentralized stablecoin USX, general lending, and synthetic assets across Ethereum, Arbitrum, Optimism and BSC.

The following are the features to be introduced, on a higher level.

Protocol Features Highlights:

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  • Vaults: This feature has already been approved for launch, allowing for USX to be minted against single collateral, as an extension to the current pool model.
  • Bridge: Allows USX to seamlessly move across different chains, from Ethereum to layer 2 and further to other chains.
  • Direct Liquidity Provision: Allows USX to be directly mint and deposited into lending protocol or DEXs via flashmint. In turn, a deposit certificate will be used as collateral, and the minting is overcollateralized.
  • Protocol-Owned-Operator: Allows the protocol to own assets and borrow from our protocol, to fully generate organic borrowing.

In addition to the above protocol upgrades, we also propose to significantly revamp the tokenomics to further integrate our underlying protocol utility and ensure value accrual

Tokenomics Highlights

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In our Tokenomics 2.0 paper, we mainly discussed the DF staking and value accrual. In V3, we go further to bring more innovative primitives to our Tokenomics.

  • DF Staking: we plan to introduce hybrid staking, both free staking and locked-up staking. Majority of the value accruals will be given to stakers
  • Governance: Only the lockup stakers are able to participate in the governance voting and can delegate their votes to others.
  • Treasury-Back-Liquidity-Operation (TBLO): Treasury contract to mint USX and acquire DF and own DF/USX, USX/EUX liquidity in the market. Treasury is also able to mint USX and participate in the Direct Liquidity Provision in lending protocol or DEX.
  • Treasury-Bonded-Buyout (TBB): At a later stage, to launch a program to further purchase LP liquidity and other assets from holders in exchange for DF tokens.

We will dive deeper into these two important parts in the coming weeks ahead. Stay tuned!

1 Like

this is massive

probabaly the biggest upgrade of the past two years