Adaptive Velocity For DeFi Tokens Issued On The Elrond Network Via DAFI Protocol
The velocity of money is a measurement of the rate at which money is exchanged in an economy. In the blockchain space, the rate of token movements is often linked with their adoption.
To gain critical mass and achieve escape velocity DeFi projects often offer disproportionate incentives to early users, encouraging adoption growth significantly in an effort to achieve a sufficiently large community.
This is why we are happy to announce that DAFI Protocol will support DeFi projects building on the Elrond Network with the option to algorithmically adjust token incentives using synthetics that are tied to the underlying token’s usage.
“Algorithmically adjusting an entire economical model according to the velocity of its underlying denomination is perhaps one of the most creative uses of blockchain and synthetics. We’re happy to work with Dafi and provide this option for projects building on the Elrond Network.” said Beniamin Mincu, Elrond CEO.
Dafi protocol enables projects to complement their token economies with a logical model based on synthetic tokens which are issued and distributed according to a token’s real adoption. This can help projects at any stage to programmatically adjust their economic models according to usage and market cycles.
Through our collaboration, DeFi projects building on the Elrond Network can opt to use the Dafi Protocol and complement their economics with an algorithmic model where real adoption is factored in.
“Elrond’s ESDT tokens and the way they are integrated directly into their protocol is highly innovative and enables interesting models for deploying our synthetics. We look forward to supporting Elrond’s blooming DeFi ecosystem.” said Zain Rana, Dafi CEO.
The collaboration is important for the Elrond ecosystem because it enables projects building on our mainnet to access innovative models to programmatically adjust their token models to factor in important metrics such as adoption.
Elrond is the internet-scale blockchain, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 15,000 transactions per second (TPS), with 6-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
About DAFI protocol
DAFI uses synthetics pegged to different decentralized networks. Every blockchain, application, and cryptocurrency can create a flavor of a dToken to reward their early users, while still enhancing scarcity when demand is low. DAFI can reward a network even when demand declines, by issuing synthetics that will reward user’s later - instead of earlier. Join us on Telegram for updates.