Yield Smoothing
Last updated
Last updated
Most, if not all, of the OHM forks approach token minting in a linear fashion which has hindered the longevity of these projects. As such, they will offer astronomical yields to begin with for a few weeks followed by a drastic reduction when it becomes apparent this level of return cannot be sustained. Or they will succumb to unrealistic expectations from users, keep yields high and fail.
But what if there was a better model for token minting? What if we used a blueprint for token minting that had already been laid out for us by the best digital asset out there… Bitcoin. The D3 Protocol presents the first ever OHM fork which has a minting cycle which decreases every 6 months reaching max supply in 5 years.
This ensures the mint rate of DEFI remains healthy, encourages healthy price appreciation over the long term and allows D3 Protocol to keep a sustainably high APY and returns for stakers as whilst APY will decrease, the token price should appreciate to offset this. This feature complements the [3.3.3.3] tokenomics previously outlined.
We’ve also taken inspiration from Satoshi and developed an automated yield halving algorithm that smooths out APY as the treasury grows and ensures sustainability of the D3 Protocol by managing inflation. We’ve found a totally unique way to manage rebase parameters to balance incentives with sustainability, rewarding stakers and ensuring long-term sustainability.
