DEGO Protocol — Decentralized Finance with Sustainability

goodnuel (39)in #defi • 4 years ago (edited)

There's been a recent rave on the blockchain for the decentralized finance (DeFi).

The rapid growth and price boom of some tokens has led to a much more coverage and public view for the blockchain and cryptocurrency in general, as people have massively joined the movement.

The rave for the DeFi money.

Investors from around the wolrd are taping into this too.

All that are very healthy for the blockchain and it's goal for mass adoption.

The downside however is that, while this rapid return on investment are thrilling, chances are, you won't be getting in anyways.

Because, the competition is quite rife. You'd most probably miss out on the real gems, as the big guns try to battle you out.

It becomes a case of the richest, fastest, dev and those at the very top of the blockchain community. But all that does fall in line with the true blockchain ideology. A transparent and level playing field for everyone.

The exploration is worthwhile, but your funds, time and chances are limited, and you can never fully grasp all investment opportunities.

To solve this issue of whales always becoming the top winners, a solution has to be in place where the liquidity pool of tokens isn't at the mercy of the whales.

Dego

The mission of the DEGO DAO is to bootstrap the growth of the DeFi DAO ecosystem and drive the community toward maximizing decentralization.

Under the current system, the liquidity is derived using the Daily output per user = daily output of the mining pool * staked amount/total staked amount. This is completely in favour of the whales.

DEGO implements the use of a completely sustainable system that uses a Liquidity mining with algorithmic adjusted.*

This is in place with the view to a more set of deterministic algorithms for liquidity mining, convert the LP token staked by users into POWER(similar to the hashrate of Bitcoin mining), and getting earnings through them.

This way, Daily output per user = daily output of the mining pool * POWER / total POWER
POWER = staked LP token amount * coefficient of correspondence.

How it works

The calculation formula of POWER are:
1/ We divide users into three ranges according to their staked amount:
a) Worst range: users with the most staked amount
POWER=1staked amount
b) Best range: users with the intermediate staked amount
POWER=5staked amount
c) Common range: users with the smallest staked amount
POWER=3staked amount*

For example, User A staked 10 LP Tokens and is currently in the common range, then his POWER is 10 * 3 = 30 POWER
The numbers of the initial three ranges are, [10, 10, total number-20]

As the total number of users increases by 100 people, the worst range and the best range increase by 10 slots, up to a maximum of 50 people.

If the user staked less than three days, 10% of the earnings are deducted during withdrawal and transfer to the dividend pool.

DEGO puts a highly sustainable system of liquidity mining at the forefront.

This is done by the modular combination idea.

This idea combines a variety of elements to build an ecosystem, or a subsystem with a very specific function.

The subsystem is combined with other modules to create a new system with multiple functions and performance.

This gives birth to the perfect product with the 1+1>2 effect.

LEGO bricks are the best example and inspiration for those modules. Every brick is plain and ordinary, but it generates endless possibilities when putting together.

DEGO equals to LEGO in the DeFi world.

Each DeFi protocol as a brick, It could be the stable coin(DAI), flash Loans(Aave, Compound), DEX exchanges(Uniswap and Balancer), derivatives( Synthetix), insurances (Nexus Mutual).

DEGO is creating a new dapp to improve the value of the DeFi, create diversified investment portfolios and generate substantial financial returns for users, and become the entrance to the future of financial services.

DEGO presents a proper blockchain with transparency, equality and security.

Conclusion

DEGO is building a level playing surface for all crypto and Defi enthusiasts. This will give birth to solution for some of the most pressing issues on the blockchain. The issues of transparency, security and liquidity.

This way, everyone wins.

For more information about this project, using the following links..

Website: https://dego.finance/home
Telegram: https://t.me/dego_finance
Twitter: https://twitter.com/dego_finance
Medium: https://medium.com/@dego_finance
Discord: https://discord.com/invite/xJjSJrd
Github: https://github.com/dego-labs