What is Demodyfi?

Demodyfi is a decentralized finance platform with a vision to bring financial stability, liquidity, and accessibility to the mainstream.

It offers a following of financial primitives, the DMOD token backed by cross-chain assets such as Dot, a trustless staking derivative and a decentralized exchange to unleash liquidity to power more financial innovations. It is the go-to open platform for finance-oriented Dapps to deploy upon using smart contracts or built-in protocols with out-of-box cross-chain capabilities, security and financial optimizations.

What are the uses of DMOD TOKENs?

DMOD is designed to incentivize the token holders and create an innovative and sustainable funding model. $DMOD is the native token of Demodyfi Network.

It serves two key functions in the Demodyfi Network as a utility Token:

  • DMOD is a native fee token (e.g. fee for native transactions and smart contracts).

  • Fee discounts of up-to *10% to use the DemodyFI platform.

  • Staking Pool rewards — A part of the fees collected from the DemodyFI protocol will be used to buy DMOD tokens from the market. These tokens will be distributed to the DMOD token staking holders.

  • Trading fees — A part of the trading fees will be used to buy DMOD from the market and distributed to DMOD token staking holders.

  • Token burn — DMOD is a deflationary token, *2,5% of the fees collected will be used to buy DMOD tokens from the market and burned.

  • Liquidity POOL — Liquidity mining of DMOD tokens when you trade on Demodyfi.

  • Hold the tokens to get discounts, stake them to earn reward from the protocol.

  • Governance of the Network; As a governance token, DMOD tokens provide their holders voting right in Treasury governance, Council member election, referendum, network upgrade, risk management, and more, e.g., adjustment of key risk parameters, such as Stability fee, Liquidation Ratio, and Collateral Type.

Why is Demodyfi built on Moonbeam?

This unique combination of elements fills a strategic market gap, while allowing Moonbeam to address future developer needs as the Polkadot network grows over time.

By leveraging Moonbeam, Demodyfi can implement smart contract primitives capabilities more efficiently by integrating with other chains and get value from Polkadot-based network effects.

What problem is Demodyfi solving?

The Ethereum 1.0 network fees are skyrocketing and slow performances are often seen, which leaves end-users frustrated as witnessed during the Defi hype. Ethereum is congested and cost efficiency & scalability challenges are driving projects to build on other chains. Leading to emerge to other ecosystems in which these problems will solve. Polkadot can figure as the solution to this problem for Demodyfi by leveraging smart contract primitives and parachain interoperability.

The challenges posed by decentralized exchanges are as follows:

• Inadequate UI/UX experience.

• Congestion Ethereum network (high gas prices)

• complexity of advanced economic features.

• Insufficient decentralization.

• Liquidity Problem

There are several possibilities for Demodyfi to contribute to the issues mentioned in the issue section:

· Using moonbeam's Parachain SMC interoperability. Polkadot’s advanced substrate technology to create its own blockchain.

· Focused on market segmentation with all DeFi needs in one place.

· Collaborated decentralized liquidity pools, enabling cross-chain lending.

· Advanced price discovery.

· By achieving a parachain Demodyfi is able to bring in liquidity from other blockchains.

How is Multichain bridging applies to Demodyfi?

Thanks to our partners Moonbeam and Substrate, Demodyfi is enabling interoperability between chains, regardless of their features. Users will be able to trade multiple crypto assets from Demodyfi’s native decentralized exchange and use its convenient interface to manage their assets across multiple blockchain protocols.

Demodyfi is utilizing Substrate’s governance and treasury management capabilities along with Polkadot’s cross-chain messaging to create a decentralized sovereign wealth fund.

What can we expect from the platform?

“Simplicity is key” The Demodyfi system is designed to on-ramp both entry-level and advanced users. Throughout this context, we are able to respond to the actual preferences of the target audience by providing the same ease of use as centralized platforms. Connecting DeFi and our use case is the mission. Creating transparency between our use case and blockchain simplicity is our goal. We are able to do this by making the platform accessible for all user-segments with no super-advanced user interface, but with something which feels familiar to its user and space.

  • Create incentives by rewarding users for providing liquidity and creating circulation under the Demodyfi protocol.

  • Lower the threshold and make the network accessible to everyone, from basic to advanced.

  • Demodyfi believes in the redistribution of governance among its users.

Is there a Minimum Staking Amount?

Minimum Staking amounts vary depending on the specific crypto. Min. DMOD: 1

What is the Minimum Amount of time I can Stake?

following soon

Which Crypto Assets does Demodyfi currently support?

We are growing our services every day and look forward to constantly growing this list.

Users will be able to stake DMOD/USDT, DMOD/ETH, and many more like KSM and L-DOT or even Moonbeams GLMR in the near future.

Does Demodyfi have any KYC requirements?

Demodyfi is currently a fully decentralized application. Users have full control over their crypto, their private keys, and their identities.

What is a liquidity pool?

A liquidity pool is a collection of funds locked in a smart contract. In Demodyfi every trading pair has 2 pools, one for each token: users called liquidity providers (LP) add an equal value of two tokens into a pool. In exchange for providing funds, liquidity providers earn trading fees from the trades that happen in their pool, proportional to their share of the total liquidity.

Who are liquidity providers?

Liquidity providers can be anyone who can supply equal values of DMOD and another token to a Demodyfi pair contract. In return, they are given tokens from the exchange contract which can be used to withdraw their proportion of the liquidity pool at any time. Whenever someone trades on Demodyfi, the trader pays a 0.3% fee in DMOD which is instantly burned. Once a day, a % of the burned DMOD is re-minted and distributed to liquidity providers. This percentage starts at *% and goes down to *% linearly over the course of 5 years.

Are there incentives for liquidity providers on Demodyfi?

Yes, there is an incentive program that will reward liquidity providers on Demodyfi for the next 5 years. About * DMOD are allocated daily, and after a vesting period, liquidity providers will be able to claim their DMOD. You can learn more here.

To stake in this Pool you must have DMOD tokens. You can get DMOD tokens by trading on PancakeSwap and Uniswap.

What is Polkadot?

Polkadot is a platform that allows diverse blockchains to transfer messages, including value, in a trust-free fashion; sharing their unique features while pooling their security. In brief, Polkadot is a scalable, heterogeneous, multi-chain technology.

Polkadot is heterogeneous because it is entirely flexible and makes no assumptions about the nature or structure of the chains in the network. Even non-blockchain systems or data structures can become parachains if they fulfill a set of criteria.

Polkadot may be considered equivalent to a set of independent chains (e.g. a set containing Ethereum, Ethereum Classic, Namecoin and Bitcoin) except with important additions: pooled security and trust-free interchain transactability.

Unlike previous blockchain implementations that provide a single chain of varying degrees of generality, Polkadot provides a Relay Chain upon which a large number of verifiable data structures may be hosted. We call these data-structures “parallelized” chains or parachains. Polkadot provides a networking and consensus layer that allows blockchain developers to focus on creating a state machine with unique features, such as formal verification or anonymity.

Polkadot consists of many parachains with potentially differing characteristics. Transactions can be spread out across the chains, allowing many more transactions to be processed in the same period of time. Polkadot ensures that the security of all blockchains in the network is robust and that any dealings between them are faithfully executed. All parachains share security and state, meaning if one chain has a message reverted, all chains get reverted. It is also possible for independent chains with their own validators to be linked to Polkadot via bridges, thereby foregoing Polkadot’s shared state and security system. These chains can benefit from Polkadot’s interoperability without being hosted on the platform, examples of these would be Bitcoin and Ethereum.

Learn more about them here.

What is Web3 foundation?

Web3 Foundation is a Swiss Stiftung established under Article 80 et seqq. of the Swiss Civil Code. The Web3 Foundation was founded by Dr. Gavin Wood and has as its focus the development, deployment and maintenance of “Web3”. Web3 Foundation promotes the development of innovative technologies and applications in the field of cryptographically-enabled decentralised software protocols.

Learn more about them here.

What is Parity Substrate?

Parity Substrate is a blockchain development framework with many cool features like upgradable blockchains, modular architecture, customizable block execution logic, and hot-swappable consensus.

Learn more about them here.

Last updated