DEGO FINANCE: TOWARDS A SUSTAINABLE LIQUIDITY MINING
DEGO Finance is a liquidity mining DeFi farming platform where people can deposit assets and receive rewards. You may mark it as just another parody at first sight, citing the food token-themed protocols. After all, for rewarding liquidity suppliers, the platform offers a different and unique strategy, one that makes a more decentralized and sustainable ecosystem. Dego finance labels it as "algorithmic-adjusted liquidity mining".
Some of the common DeFi farming protocols implement a template that rewards whales, such as SushiSwap or SashimiSwap. Whales can receive large parts of liquidity bonuses quickly, which they normally dump on the market. This can have a huge negative effect on their DeFi policy for smaller shrimp farmers. In addition, due to high transaction costs, smaller investors do not transfer their funds around quickly. All in all, the trend has developed various DeFi protocols that in the longer term don't provide sustainable ecosystems or tokenomics.
DEGO'S SUSTAINABLE APPROACH
For liquidity mining, the platform utilizes a set of deterministic algorithms. When a user places LP tokens on the network, they are converted to POWER to decide the amount of rewards they will earn. In Bitcoin mining, you could compare POWER to hashrate. The formula places less emphasis on the amount at stake, and more on the total number of participants. This is why a forthcoming referral service is also available for Dego Finance.
It is expensive to hunt DeFi gems. However, It can be valuable to be an early investor, but it is difficult to catch the correct timing and you always risk being a swindle for the project. By following an unique system, Dego minimizes this risk, where every DeFi protocol (Aave, Uniswap, Yearn etc ...) is a lego brick in its ecosystem. As a consequence, a dynamic investment portfolio for its consumers is provided by the platform.
In pursuance of its sustainability quest, the DEGO governance token has a low inflation and benefit sharing model in way to extend to the sustainability architecture. 1% is lost completely by burning on each transfer, and 1% is added to the dividend pool on each transfer. The platform is forward minded and the emerging industry pattern surrounding crypto collectibles and art has been adopted. Token holders can invest their DEGO tokens to generate specific non-fungible tokens that they can exchange for additional income streams on OpenSea.
LIQUIDITY MINING
Also for limited-capital owners, a user-friendly and fully prepared-to-use Dapp is necessary to fix that problem, so that it can shape a more sustainable DeFi ecosystem. That's why DEGO enables algorithmic changes for liquidity mining.Through liquidity mining, DEGO initiates a new age for DeFi. The issue we encountered in previous DEFI mining is that the whales are able to grab the most mining rewards. However, DEGO comes up with a creative solution for that challenge.
For instance, in the more conventional mining method
Daily output per user = daily output of the mining pool * staked amount/total staked amount
With this method, the whales gets the most mining rewards or bonuses. DEGO has implemented liquidity mining with algorithmic changes to solve this problem. In DEGO, they utilized deterministic algorithms for liquidity mining, translating into POWER the LP tokens staked by users and obtaining earnings by that amount.
Daily output per user = daily output of the mining pool * POWER / total POWER
POWER = staked LP token amount * coefficient of correspondence
According to their stake number, they split users into three phases:
1st Phase: users with the most amount involved
POWER=1 * Sum staked
2nd Phase: users of the staked intermediate number
POWER=5 * Sum staked
3rd Phase: users with the smallest amount at stake
POWER=3 * Sum staked
If the amount of users grows by 100 participants, up to a limit of 50 people, so the worst range and even the best range increases by 10 slots.
And another relevant issue is that 10 percent of the earnings will be deducted during withdrawal and move to the dividend pool if the customer has staked less than three days.
DETAILS ABOUT DEGO'S TOKEN
ERC 20 TOKEN
DEGO Financ Token - DEGO
Smart Contract Address: 0x88ef27e69108b2633f8e1c184cc37940a075cc02
Total Supply 21m only
Out of This 16m is allocated for mining
Halvening Period : 1 week
FURTHER INFORMATION ABOUT DEGO
Website: https://Dego.finance
Telegram:
https://link.medium.com/AdXTJGkCjab
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ETH Wallet Address: 0x3C7344E23143e993265d39Fa27117973fB22eA88