DefiDollar is on a multichain trajectory with the protocol primed to launch on the Binance Smart Chain with the DUSD Index and the Savings Account. This is a big milestone and will help the protocol attract :
- A wider user base & increased TVL fuelled by reduced gas fees boosting interactions with the protocol
- Catalysing awareness on a Layer 1 to onboard and curate a diversified community
Having deep liquidity on BSC DEX pools will be a great way to optimize for awareness and distribution for the DefiDollar community.
The current Balancer DFD/DUSD (Pool management - Balancer) is being incentivised with - 80k DFD per week.
This pool has seen lower volumes as compared to the other incentivised pools and thus the proposal to optimise returns on these inflation rewards by using them to seed the DEX Liquidity on BSC:
Period : 3 Months
Rewards: Total of 720k DFD for the 3 months
This redirection will allow DFD to have a wider distribution and bootstrap volumes ensuring in better price discovery and liquidity on BSC. With enough DFD circulation we can initialise the DFD staking and buyback eventually on BSC and this will be a step in that direction.
As this is an experiment in the multi chain realm, after the defined period ends these rewards will be revisited and can be allocated to a more strategic initiative.
1) DFD/BNB pool
With BNB being the ETH of BSC, a BNB pool may help in quicker bootstrapping of liquidity. A lot of new pools on BSC Dex’s are launched with a BNB pairing to maximize the network effects.
The downside here is that both the tokens in the pool can have fluctuating value and some community members expressed interest towards a different pairing detailed below.
2) DFD/BUSD pool
BUSD will be a component of the DefiDollar index on launch on BSC. It is one of the most liquid stabelcoins on BSC and the community has expressed interest of having this pair as it allows them to retain exposure to DFD while taking the other side in a Stablecoin.
We will soon be calling for the community to vote for [DIP-3] Allocating DFD liquidity mining rewards for BSC.
- Initialize a DFD/BNB pool
- Initialize a DFD/BUSD pool
- Continue with Balancer DFD/DUSD