Such a long and boring title… but such an important element of our protocol. Anystake will allow external partners to stake their tokens and have their stakers receive DFT tokens.
When we distribute our tokens, how do we, as a community, also get benefit from these partners?
A Primer on the AnyStake protocol
Let’s look again at AnyStake features to better understand the protocol: Typical farming solutions propose users to stake LP tokens in exchange for rewards. These rewards tokens are minted or distributed to stakers in exchange for securing liquidity, and taking a risk on Impermanent Losses.
This model is great, and is the foundation of DeFi (Decentralized Finance), but is also limiting, and Impermanent Losses (IL) can quickly make users lose benefits of a token price increase.
AnyStake proposes an additional way of generating VALUE for a protocol, while removing the IL risk for users. Do do so, we reworked the farming token model and introduced the following features:
- Ability to stake “any” token (well not “any”), assuming these tokens will have to be vetted by the admins (no risk of hurting the protocol) and validated by the community.
- Small fee on withdrawals, used as to buyback DFT , to reward loyal stakers, and to alleviate price impact on exits.
- “Preferred Pools”, only opened to stakers who are staking (locking) DFT in the pool pid[0].
These preferred pools are the cornerstone of our Partnership model, as new projects holders will have to purchase a small amount of DFT and stake it to be able to stake their token and earn rewards in return. For these stakers, there’s no entry fee, as the staked DFT can be taken back anytime they want to exit.
AnyStake Partners Protocol Model
To be able to be listed on the Anystake protocol, partners will have to comply with 2 conditions. None of these conditions will result in a fee or payment.
- The Partner pool is a “Preferred Pool” (meaning their stakers need to stake some DFT to be able to stake their native token).
- The project admins will have to create some DFT_ETH liquidity and lock the LP tokens into a time based contract for a short period (weeks).
After the period, the project admins can decide to remove this liquidity if they want to (it’s not a fee).
The Benefits of the Partner Model
We want this model to create a win-win opportunity with our partners.
A. Their users get a chance to stake their token and earn DFT tokens.
B. In return, our DFT liquidity increases and new entrants also purchase tokens to enter, driving the price of the DFT token up and creating more holders, thus more decentralization.
— The Defiat Team
