# What is DAVOS Protocol?

By [Tikur](https://paragraph.com/@tikur) · 2023-06-17

cryptocurrency, blockchain, davos

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#### **_What is Davos?_**

Davos is a DeFi ecosystem that allows its users to easily borrow **_"DAVOS Stable Assets"_** by using their crypto asset to **_over-collateralize_**. In addition, users can earn by depositing their crypto assets on the Davos DEX, plus receive an equivalent derivative token when depositing which makes them stay liquid. 

Davos Protocol consists of a dual token model which are **_DAVOS_** and **_DGT_**.

The platform strives to provide stability and sustainability to its users which is also worth mentioning that it has been audited by 'Quantstamp' and 'Veridise'. 

#### **_How Does Davos Protocol Work?_**

The Davos protocol is relatively easy to navigate and provides different features. Users can borrow or earn using their crypto assets. 

*   **_Borrow_**
    

Users can deposit **_PoS (Proof-of-stake)_** tokens as collateral to borrow DAVOS Stable Assets. The PoS tokens can be **_Ethereum (ETH), Polygon (MATIC) or Avalanche (AVAX)_**.

*   **_Davos DEX_**
    

1\. Users can also choose **_Davos-Token_** pair and deposit onto the platform. 

2\. Davos Protocol runs diverse low-risk strategies to generate yield from the collateralized assets and redistribute it to DAVOS stakers and DEX liquidity providers.

3\. Then receive earnings up to 9% APY 

#### **_Closing Thoughts_**

In my opinion, Davos protocol has a very good potential to be right up there with the other great platforms but there is still a good amount of work to be done. According to the whitepaper, It has created a simple and sustainable way to generate a yield for its users which I find very awesome in these highly volatile times. I would also like to add that the platform's interface is really user-friendly as compared to some other platforms. 

**_So what are your thoughts on Davos Protocol?...... Let me know in the comment section._**

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##### **Disclaimer**

I am not a financial advisor. The information found here are for educational purposes and cite my personal opinion.

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*Originally published on [Tikur](https://paragraph.com/@tikur/what-is-davos-protocol)*