Co-Founder of FortiFi | Ex-Kraken
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Co-Founder of FortiFi | Ex-Kraken
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DSTR is a liquidity incentive protocol that follows a novice and unique mechanism for Liquidity Provider incentives. Currently, projects may users look to acquire liquidity from liquid tokens such as AVAX, ETH, USDC, or USDT. This is one style of holder. Another group of investors is current liquidity providers in other LP positions. Some are current positions, some are dust from old positions.
Enter DSTR an incentive schematic for attracting current LPers to provide for a new token instead. DSTR has 3 main parts: Acquisition + weight assignment, Splitting, reforming + Balancing.
Acquisition and Weight Assignment involves reading LP and determining if it is a whitelisted contract address and determining how much AVAX is in the position. Splitting involves unpairing the LP and sending the non-AVAX portion to the Treasury. Reforming takes the AVAX and the new token and pairs them in the LP, excess AVAX is sent to the Treasury. LP receipt token is then distributed back to holders.
The DSTR protocol while simple in practice, the mechanism can be scaled and embedded within other tokenomic ecosystems. Below is the DSTR enhanced with dual-tier rewards, a simple tri-token system with an included xTOKEN, and the end LP being distributed via ecosystem NFT.]
The two tier approach for the DSTR protocol allows for a preferred LP pair to be rewarded for users to exchange for Token A / AVAX LPs. If the Treasury planned to use Platypus or JOE yield farming, they could reward JOE/AVAX or PTP/AVAX LPs for a boost in rewards. This is if the treasury wants to use vePTP or veJOE boosted farming.
Another reason to incentivize a pair like FEED/AVAX or EGG/AVAX is to attract a particular group of investors. The DSTR protocol then becomes easy for users to port from farmland to the new protocol if Chikn holders were a target audience.
Gitbook Link:
DSTR is a liquidity incentive protocol that follows a novice and unique mechanism for Liquidity Provider incentives. Currently, projects may users look to acquire liquidity from liquid tokens such as AVAX, ETH, USDC, or USDT. This is one style of holder. Another group of investors is current liquidity providers in other LP positions. Some are current positions, some are dust from old positions.
Enter DSTR an incentive schematic for attracting current LPers to provide for a new token instead. DSTR has 3 main parts: Acquisition + weight assignment, Splitting, reforming + Balancing.
Acquisition and Weight Assignment involves reading LP and determining if it is a whitelisted contract address and determining how much AVAX is in the position. Splitting involves unpairing the LP and sending the non-AVAX portion to the Treasury. Reforming takes the AVAX and the new token and pairs them in the LP, excess AVAX is sent to the Treasury. LP receipt token is then distributed back to holders.
The DSTR protocol while simple in practice, the mechanism can be scaled and embedded within other tokenomic ecosystems. Below is the DSTR enhanced with dual-tier rewards, a simple tri-token system with an included xTOKEN, and the end LP being distributed via ecosystem NFT.]
The two tier approach for the DSTR protocol allows for a preferred LP pair to be rewarded for users to exchange for Token A / AVAX LPs. If the Treasury planned to use Platypus or JOE yield farming, they could reward JOE/AVAX or PTP/AVAX LPs for a boost in rewards. This is if the treasury wants to use vePTP or veJOE boosted farming.
Another reason to incentivize a pair like FEED/AVAX or EGG/AVAX is to attract a particular group of investors. The DSTR protocol then becomes easy for users to port from farmland to the new protocol if Chikn holders were a target audience.
Gitbook Link:
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