The DefiDollar team is proposing a DFD vault hereby referred to as the Interest-Bearing DFD (ibDFD) which is similar to the ibDUSD savings product. It also introduces protocol fee sharing and liquidity mining incentives for staked DFD.
- Users will deposit DFD tokens and get interest-bearing DFD (ibDFD) which are interest-bearing versions of DFD and can be transferred freely.
- This vault will have income sharing alongside ibDUSD i.e. it will receive a portion of yield (denominated in $DUSD) being generated from the underlying integrations with curve and the Yearn yUSD vault. We propose 50:50 revenue sharing to start with; open to be changed by governance in the future.
- The accrued $DUSD will be utilized to purchase DFD from the uniswap DFD/DUSD pool.
- This vault also receives a fixed weekly DFD emission that will be claimed in a pro-rated manner every time
harvestis called on the vault. I propose to start with at least 20K DFD weekly emissions *(actual amount may vary depending on the allocation to other incentivized pools - tbd later).
- A user will be able to redeem their ibDFD for more DFD tokens that they deposited, as a result of protocol fee sharing and liquidity mining incentives baked in.
- The vault will have a 0.5% exit load to prevent front-running attacker vectors. This fee will accrue to other ibDFD holders.
So basically this vault acts as a DFD buyback machine.
A. The vault is a precursor to a full-fledged stability module that will come later. In a nutshell, staked DFD while bear the peg failure risk and hence get a share of protocol income + DFD emissions - Very similar to synthetix staking.
B. Procotol earns income from the following sources:
- Trading fees generated on the integrated y curve pool.
- The yield from the yUSD Peak
- DUSD redeem fee — 0.1%