dAMM Finance
  • Introduction
    • Abstract
    • The Space
    • The Issues
  • The dAMM Protocol
    • What is dAMM?
    • Understanding dAMM Pools
    • Supply APY
    • Token Borrowers
  • dAMM Token
    • dAMM Utility
    • bdAMM
    • Boosted Pools
    • Governance
  • Interest Rate Model
    • Utilization Rate
    • Borrowing rates
    • Supplier Rates
  • Conclusion
    • Roadmap
    • Future Goals of the Protocol
    • Summary
    • Contract Addresses
  • Security Audit:
    • Dedaub Security Audit of dAMM Finance
  • References
    • [1] Market Making Proposal 1
    • [2] Market Making Proposal 2
    • [3] Notable Recent Exploit
    • [4] Impermanent Loss in Uniswap V3
    • [5] How Liquidity Provider (LP) Tokens Work
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  1. dAMM Token

bdAMM

With the benefit of hindsight, we believe that liquidity mining has been an unsustainable tool for protocols to rent liquidity from their users. The most valuable users of a protocol are incentivized to farm rewards and immediately sell the tokens they mine.

As a result we wanted to build a token distribution mechanism that:

  • Rewards our most active borrowers and lenders

  • Creates positive value for the protocol as a whole

As such, dAMM tokens will be distributed through a new mechanism we call, “Liquidity Bonding.” Liquidity Mining on dAMM does not pay out in the form of dAMM directly, but rather bdAMM. bdAMM can be redeemed 1:1 with dAMM, at a discount to the market price of dAMM.

  • 75% of capital generated from bdAMM sales is restaked into dAMM Pools

  • 25% is staked in the public insurance pool.

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Last updated 2 years ago