We are pleased to introduce Booster Rewards for vDfyn pool. The Booster rewards trace their roots to the first Dfyn Governance Vote — DIP001 which was about getting the community to decide on allocating the fees earned by Dfyn before vDfyn was introduced.
Over 250 community members participated in the voting and the winning choice was to compound Dfyn in DFYN/USDC pool and distribute rewards to Dfyn stakers.
At the time of making the vote — we had roughly $600,000 worth of LP tokens of DFYN/USDC . After the vote, we slowly converted the entire LP pair to DFYN tokens. Around 800,000 DFYN tokens were acquired which will be used for boosting rewards of Dfyn stakers in the vDfyn pool.
As you may know, we recently launched vDfyn pool on Dfyn where community members can stake their $DFYN tokens and get vDfyn which is a yield-bearing asset and gets its yield from Dfyn exchange fees. As of now, almost 2 Million $DFYN tokens are staked in the vDfyn pool generating an organic, self-sustainable APR for Dfyn stakers.
The 800,000 $DFYN from the fees will be used to boost the staking rewards for the next 180 days. This means for the next 6 months, vDfyn holders will not only get the fees rewards but booster rewards as well. After adding the booster rewards, the APRs at the time of writing have shot up to 233%.
The emission schedule for the rewards will be as follows :
Start Date: 25 September 2021
End Date: 19 March 2022
Duration: 180 Days
Total Booster Rewards : 800,000 $DFYN
Booster Rewards per day: 4444.4 $DFYN per day
Booster Yield in 180 Days: 72% (APR)*
The yields are calculated with the assumption that the vDfyn vault has two million $DFYN tokens staked in it. The booster yield will go down as the number of Dfyn staked increases, for example, if vDfyn vault balance changes to four million $DFYN tokens — the booster yield will become half of what it is currently.
So in summary: For the next 180 days, we will be adding 4444.4 $DFYN tokens every day to the vDfyn contract. The $DFYN tokens are being added to create the extra booster yield for Dfyn stakers. They are being spread over six months to support long-term stakers. At present, nearly two million $DFYN tokens are staked in the contract — if this remains the same, the Dfyn stakers are going to receive an extra yield of 72% APY as booster rewards.
Dfyn is a multi-chain AMM DEX currently functional on the Polygon network. Dfyn nodes on various chains act as liquidity entry and exit points into the cross-chain liquidity super mesh that is being enabled by Router Protocol.
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