Why It Works

An auto-investing treasury

Through the [] buy and sell taxes on DEFI, and mints of multiple DeFi 3.0 tokens, the treasury acquires a basket of yield bearing tokens, receiving reflections and dividends as well as any future token price appreciation, further growing the treasury and backing the price of DEFI, whilst giving stakers exposure to a diversified basket of DeFi 3.0 assets.

This immediately positions DEFI as the cross-chain decentralized index for the entire DeFi 3.0 ecosystem. This has multiple benefits, including a diversified, hedged and risk adjusted portfolio that is optimized both for profit and market volatility, further building the treasury, liquidity and resilience of the D3 Protocol.

Treasury allocation

Initially, the D3 Protocol will reserve 20% of the treasury for operating costs. This will enable us to build a world class team and execute our growth strategy to the highest standards whilst ensuring D3 Protocol evolves into a sustainable, dominant market force for years to come.

The remaining 80% of the treasury is used to back DEFI and provide staking yields, and is hedged across BUSD and other crypto native assets to ensure sustainability in the face of market volatility. Specifically, we will invest in other credible, audited cross-chain DeFi 3.0 projects, which gives exposure to the native tokens and the benefits of their reflections and/or farming strategies.

A first in the world of DeFi

Whilst most other OHM forks build a large treasury, and then try to work out what to do with it to generate returns, D3 Protocol has addressed this issue from day one. The treasury auto-invests into DeFi 3.0 yield bearing assets through DEFI transaction taxes and mints. These assets then immediately start generating returns for the treasury through reflections and dividends.

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