Understanding minting

Minting is the secondary strategy for accruing value from the D3 Protocol. Minting is the mechanism which enables the D3 Protocol to acquire its own liquidity, as well as reserve assets. This is done by offering discounts on mints that distribute DEFI at a discounted price over a predefined vesting period. On our website mints are quoted with their terms;

  • The price discount for DEFI when minting versus the current DEFI fair market value

  • The amount of DEFI tokens the buyer will be entitled to

  • The maximum available DEFI that can be minted at that current time

  • The vesting terms after which DEFI tokens can be claimed

Things to be aware of when minting

All mints are vested for 5-days. After the vesting period you can claim your minted DEFI and auto-stake them. It is also important to note that [] taxes only apply to buying and selling DEFI on the open market. These taxes are not applied when minting DEFI, offering an immediate 12% upside on minting DEFI.

Furthermore, minting offers DEFI at a discount. As we are operating in a free market, price discovery in secondary markets means that mint discounts can be hard to predict. As such, this is an active investing strategy that should be monitored to minimize risk. For the less experienced investor, it may be easier to consider simply buying and staking DEFI alone.

Why minting is important

Minting is vital to the D3 Protocol ecosystem, as it enables the protocol to acquire liquidity. This is known as Protocol Controlled Value (PCV) and is the amount of LP that the treasury owns. The higher the PCV the more robust the protocol, by ensuring sufficient trading liquidity, and compounding the treasury through LP fees.

Initial mints available include BUSD, CCF, and DEFI-BUSD LP with varying dynamic rates of discount to incentivise minting. All options for mints can be found on the D3 Protocol website, with new mints for other assets available over time. Through acquiring these additional assets into the treasury, DEFI will establish itself as the decentralized reserve currency for DeFi 3.0.

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