When we started DefiDollar at ETH Hackmoney, our goal was to build a robust stablecoin index, protect users from volatility, and hedge their holding risk. We have had several occurrence since and we have been strategically thinking about DefiDollar’s future. Our aim is to build products that make DeFi simpler for everyone. This makes us go beyond the vision of just building out a Meta-Stablecoin Index.
DefiDollar advanced into DefiDollar Finance to bring this vision to reality and eventually aims to transition into a DAO.
In this update we are proud to reveal DefiDollar Finance with:
A Brand new website
New staking mechanism
Upgraded fee-sharing for DFD holders
Future product experiments
The new website: DefiDollar Finance
DefiDollar Finance will now comprise three products within its umbrella :
DUSD — The stablecoin Index
ibBTC — The Bitcoin Index
Opeth — Options backed smart collateral
In this past year, the team has successfully shipped 3 products and currently holds a cumulative TVL of ~$52 Million.
New staking mechanism
We have introduced a new staking mechanism that is better aligned with the protocol objectives i.e. to reduce flux and reward the long-term believers of the protocol.
The staking v2 will have the following two new parameters:
Unstaking Period: Once staked in order to withdraw and access your funds you will have to wait for a 7 day period. Once that period ends the withdrawal period starts.
Withdrawal Period: Upon completion of the staking period, users get a window to withdraw their assets from the vault. If they are unable to do so in the withdrawal period the funds will be staked again and the user needs to unstake once again.
Our staking contract is based on Alpha Finance Lab’s staking design. Hat-tip to them for introducing a neat mechanism.
Users can port their DFD staked in v1 vaults to v2 vaults. If you continue to stay in v1 you will not earn the protocol fee rewards. Withdrawal fee of 0.5% will not be charged when migrating the position.
Fee sharing to DFD Stakers
Currently, the protocol is earning income from ibBTC. (Refer the ibBTC dashboard for fee earned). This fee will be distributed to the DFD stakers. This will result in improved value accrual for DFD and will allow for a greater percentage of DFD to get locked in the DFD staking vault thereby reducing DFD in the free markets.
The accrued ibBTC fee will be distributed among the stakers that will be claimable at the end of every week. Users can let their shares accumulate and claim all at once at a later time.
Some members of Defidollar DAO are bootstrapping a new project — a perpetual futures exchange. More details on this in early September. In case there is a token for Opeth and Perpetuals projects, DFD stakers will receive an airdrop. An individual’s airdrop amount will be a function of the amount staked and the staking duration.
We plan to explore multiple such experiments in the future.