# Demodyfi " the AMM DEX on MOONBEAM
Demodyfi stands for "thinking differently and diverging from the way we currently think and act throughout traditional finance.
## Narritive
Our mission is to accelerate mass adoption of digital assets by connecting traditional and decentralized finance. Our project is a next-generation blockchain DEX called Demodyfi. The solution is to build an infrastructure that allows you to take control of your assets, combined with ease of access in UI /UX.
Although inspired by the current DEX's on the market, Demodyfi is a decentralized financial platform with a vision to bring financial stability, liquidity and accessibility into the mainstream. It is the go-to open platform for finance-oriented dApps to implement on with smart contracts or integrated protocols with out-of-box cross-chain capabilities, security and financial optimizations.
We want to share our passion and create value by improving and innovating monetary products in a decentralized way using blockchain. We also conclude that the economy should be decentralized yet rational and that this would have a social impact. In addition, we share Polkadot's values of technological agnosticism, interoperability, and cross-chain collaboration. "Demodyfi aims to become a key building block supporting the new user-centric, crisis-resilient financial ecosystem."
# Project overview
DEFI represents a paradigm shift in the very idea of economic organizations, offering complete transparency, total token holder control, unprecedented flexibility and autonomous governance.
**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 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.
# Problems
This paper introduces a Substrate-based engine on the Polkadot network and will elaborate on the decentralized protocol that enables cross-chain financial stability and liquidity on Polkadot.
## **Issues**
Despite the offer and popularity of several exchanges in the market, there is still plenty of room for growth. Crypto consumers prefer centralized exchanges in part because of their convenience and ease of use, while still being mindful of the risk to their wallets. Based on research by Prof. Philipp Sander, decentralized exchanges still have a long way to go when it comes to ease of access for novice and advanced consumers. The current range of decentralized exchanges shows that complexity is still a big issue. However, some of them are simply not properly decentralized and have also been hacked. An exchange cannot be positioned as decentralized if it can lose or freeze customer funds.
Ethereum network fees have skyrocketed and performance is often slow, frustrating end-users as seen during the Defi hype. Ethereum is congested and cost efficiency & scalability challenges are driving projects to build other chains.
```
The challenges
• Inadequate UI/UX experience.
• Congestion Ethereum network (high gas prices)
• complexity of advanced economic features.
• Insufficient decentralization.
• Liquidity Problem
Users are increasingly demanding;
• Cost reduction in transactions
• Ultra-fast swaps
• Simple, User-friendly UI/UX
• Buy and move assets between blockchains
```
## **Cope with the issue context and solution**
There are several ways for Demodyfi to contribute to the issues mentioned in the issue section.
* Leveraging Polkadot's advanced substrate technology and Moonbeam's Parachain interoperability.
* Focused on market segmentation with all DeFi needs in one place.
* Collaborated decentralized liquidity pools enabling NFT cross-chain lending.
* Advanced Price Discovery (Oracle).
* By leveraging Moonbeam's parachain capabilities, Demodyfi is able to bring in liquidity from substrate-based blockchains, not just Ethereum-based chains.
```
Future plans:
• Integrate stable coin DUSD in the near future.
• Integrate unsecured DOT loans.
```
# Technical Architecture
By building Demodyfi on Moonbeam, the project is able to leverage Moonbeam's underlying infrastructure, including the collators, connectivity to the Polkadot relay chain, integrations with other Polkadot-based chains to bring assets into the network, and more. This dramatically simplifies the implementation of Demodyfi on Polkadot compared to a native parachain-based implementation. However, Demodyfi aspires to use a future parachain-based implementation should we want to scale even more.
Demodyfi composes functionality from Polkadot parachains using Moonbeam as a lightweight integration layer that aggregates network services before presenting them to the end user. Users will be able to trade multiple crypto assets from Demodyfi's native decentralized exchange and use the convenient interface to manage their assets across multiple chains non-custodial, using the Metamask and Polkadot.js extension wallets.
The primary goal is to incentivize user behavior over a predefined period of time by leveraging the specific functionality of Polkadot Parachains while reaching users and assets on other Chains. In addition to this goal is to create a deflationary asset DMOD that is the bridge to the defi space to provide financial access and services while still being in control of your assets. With these goals in mind, we want to enable lower transaction fees, faster confirmations, more efficient liquidity, and the provision of key features such as flash swapping at a scalable level.
Additional, we believe that proper decentralization and interoperability is achieved through a parachain in Polkadot that brings in liquidity from other parachains, and also through the bridge protocol that connects directly to other blockchains like Ethereum. Consequently, traders have two different mechanisms to bring in liquidity. Thanks to Polkadot's ability to bridge blockchains, shards will also be able to interact with Demodyfi's financial protocol and crypto assets on external networks like Ethereum.
# Demodyfi Protocol
The Demodyfi protocol supports the value interoperability between different parachains, allowing the tokens on the Polkadot chain to be quickly traded and circulated. The protocol is integrating and combining communication between different blockchains:
`Ethereum Compatibility = “blockchains on parachains Architecture.”`
The protocol utilizes Moonbeam’s parachain smart contract interoperability while the Substrate framework serves as a fundamental layer. Combining this makes it potential to build on Polkadot, furthermore make it compatible with the EVM, and to deploy EVM-based bytecode compiled from Solidity using tools available from the Ethereum stack.
We share Polkadot’s values of technological agnosticism, interoperability, and cross-chain collaboration. With the help of our partners like 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 aims to become a key building block supporting the new, crisis-resilient financial ecosystem.”
### Demodyfi Fundamental layer
By building on Moonbeam, Polkadot and Substrate lay the groundwork for new forms of social organization and decision-making. Demodyfi leverages Substrate's governance and treasury management capabilities along with Polkadot's cross-chain messaging to create a decentralized sovereign wealth fund. The goal for this is to fund and secure a parachain slot and drive further development.
Result, Demodyfi is able to build a next-generation DEX that extends its DeFi product line into a single-source, cross-chain market. The ability to do both pools and cross-chain swaps, powered by the Polkadot ecosystem, which can provide higher throughput for faster and cheaper transactions while remaining connected to the Ethereum Network and other blockchains for liquidity.
### Add Value
A Demodyfi deployment adds significant value to it's end user utility to both Moonbeam and Polkadot. It provides useful DeFi services for investors looking to create investment portfolios consisting of Polkadot-native assets and who are looking for yield on those portfolios. It also provides trading and arbitrage opportunities for traders that will earn fees by helping keep portfolios balanced. And last but not least, it provides a way for teams to bootstrap liquidity for their project. These are all very valuable services that the growing ecosystem of Polkadot native assets needs.
# Cross-chain Swap
Polkadot defines a low-level integration protocol that can be used to facilitate communication between parachains within the Polkadot network called cross-chain message passing (XCMP), and a way to share trusted logic between chains on the Polkadot network called shared protected runtime execution enclaves (SPREE).
The asset cross-chain bridge gateway serves as a bridge connecting the multi-currency asset market and the Polkadot DeFi market, allowing users with different assets to seamlessly participate in the upcoming Polkadot DeFi market more conveniently. User transfers are generated by the gateway and sent to the Demodyfi platform which performs a 1:1 conversion of assets. Finally, all the tokens on the chain can be circulated on the Demodyfi platform to realize the generation of different parachains currency value circulation. The [XCMP protocol](https://wiki.polkadot.network/docs/en/learn-crosschain) will allow any parachains to interoperate by passing messages between them. Furthermore, as bridges to other chains are launched (such as those to Bitcoin or Ethereum) the parachains will be able to operate with these as well.
### ERC-721 Token Transfer (beta)
Although it’s possible to swap any asset cross-chain, Demodyfi is implementing a `modular multi-directional blockchain` bridge built by ChainSafe and provided by Moonbeam, which connects our `Beta TestNet` and Ethereum’s`rinkeby TestNet`. The bridge is at its core, a message-passing protocol. Chainbridge relies on trusted relayers to perform, however, it features a mechanism that prevents any individual relayer from abusing their power and mishandling funds. This means that besides ERC-20 tokens, also ERC-721 implementations and NFT capabilities will be available to use on the Demodyfi platform.
# Cross-chain Flashloan
On the Demodyfi platform you will be able to utilize interoperable flashloans cross-chain.
## Flash Loan
Flash Loans makes it easy and instant to borrow without collateral once liquidity is returned to the pool within a single trading block. If this is not done, the entire transaction will revert and the actions taken up to that point will be effectively revoked. This guarantees the security of the funds in the pool.
DemodyFi Flash swaps allow you to withdraw up to the full reserves of any token on the platform and execute any logic at no upfront cost or locking up collateral for the borrowed tokens. If you are unable to meet either of the following conditions by the end of the transaction:
* Pay for the withdrawn tokens with the corresponding pair tokens.
* Return the withdrawn tokens along with a small fee.
The flash swap transaction will fail, and any other arbitrary execution involved in that transaction will be rolled back. This is possible because these flash swaps are atomic transactions.
## Use Case
Traditional flash swaps are possible from protocols like Uniswap and AAVE for Ethereum based tokens, but the Demodyfi protocol allows you to perform flash swaps with assets from other substrate as well as non-substrate chains. In addition, you need to pay a small protocol fee to use this feature which will be nominal.
Use Cases:
1. Arbitrage, examples of use include arbitrage, claiming (NFTs) rewards while they accrue in a pool.
2. Collateral Swap
###
# Cross-chain NFT & Flashloan
Flashloans gave to the DeFi ecosystem infinite use cases and we’re excited to see what builders create on top of this feature in the NFT landscape.
### NFT Flashloans
On DemodyNFT you will be able to take out a flash loan on any of the pools and use any of the NFTs locked in our platform.
### Pool
Anyone with an NFT can create a new pool or add his NFT to an existing pool and get ERC20 Token derivatives of their NFTs in a permission-less way, those tokens can be transferred and traded on Demodyfi right away. You can also swap your NFT for another NFT of the same pool, without the restriction to tokenize.
### **Use cases**
In this section we’ll describe how various actors of the NFT ecosystem can make use of DemodyNFT:
**NFT holders**: Collectors of any project can easily deposit their items in exchange for the associated tokens to get instant value and liquidity for their NFTs. DemodyNFT is an ideal way to collect NFTs themselves, as the volume and liquidity guarantees a fair price for both sellers and buyers.
**NFT creators**: NFT project developers can create or support the pool for their NFT project on DemodyNFT as well. Having a healthy pool with good liquidity on a DEX enables your users to easily trade their items together and allows newcomers to get items at a fair price. The pool can also be used as a sale mechanism for NFT projects while the pair is incentivized to get high liquidity.
**NFT investors**: Having access to tokenized derivatives of an NFT project enables generic investors to speculate on the price of a collection without having to worry about identifying and buying individual items, as these operations can become pretty difficult. This attempts to address one of the outstanding problems in NFT investing: getting general price exposure to NFT ecosystems.
## Add your project
NFT project developers can create or support the pool for their NFT project. Having a healthy pool with good liquidity on the Demody DEX enables their users to easily trade their items together, and for newcomers to get their items at ***a fair price***. The pool can also be used as a sale mechanism for NFT projects while the pair is incentived to get high liquidity.
**NFT projects** featured on Demodyfi will add a use case for your NFTs, users will be able to buy and sell their NFTs in a more liquid way as well as creating arbitrage opportunities on other second hand markets where you can capture fees.
Governance update for NFT will follow soon.
# Liquidity staking
**Liquidity provider is rewarded with exchange fee and an additional reward.**
All liquidity pools contains a balance of two tokens, and the exchange rate is the amount of one token divides that of the other. Demodyfi users benefits instant token swap without the need for an order book like centrale exchanges, whereas liquidity provider could supply liquidity of the two tokens in a pool to earn a fee and enjoy one the economics incentives.
The Demodyfi platform has governance tokens (\*DGOV) that it wants to distribute. To do this, users can choose different pools from which these DGOV can be received through liquidity mining. As long as the tokens provided by the user remain in the pool, he earns both 0.3% swap and the governance tokens that are “mined” at each block.
Users enter into the pooling of their choice. As the platform introductory launch offer, the platform will generate more DMOD rewards per block during the first days, from the launch of the platform, divided by the proportional share of the pool. The APY calculation is based on the return in ETH/DOT to the daily USD value, based on current the block returns annualized. It is not a fixed return, it is not a promised re-turn, it is based on ETH/DOT returns. If you have provided liquidity to a Liquidity Pool that is available for rewards there will be a bright DMOD that can be earned with just a few clicks on our pooling page.
## DOT Staking Beta
Polkadot uses NPoS (Nominated Proof-of-Stake) as its mechanism for selecting the validator set. It is designed with the roles of validators and nominators, to maximize chain security. Polkadot network targets 50% active DOT staking with a 20% annual return. Effectively, this creates an opportunity cost for using DOT in other applications versus staking.
Ethereum as it currently stands as a PoW network has no such barrier, and in fact, has an incentive for ETH holder to participate in DeFi applications like MakerDAO or Compound. On the other hand, if DeFi lending applications provide a better yield than staking, it could motivate the collective movement of funds from staking to lending, causing a 'bank run' and risking the security of the entire network.
Our goal is to establish a decentralized staking pool where users would lock their GLMR / DOTs to gain staking yield while receiving a receipt that is liquid and tradable. We are currently in talk with other parties like Acala and moonbeam to integrate these features.
# Governance
We aim to facilitate the engagement of token holders as part of launching the network.
### Introduction
Polkadot allows its parachains to exercise full sovereignty and manage its governance independently. Changes to the network are coordinated on-chain autonomously and certify that development reflects the values and avoids stagnation. This is compatible with Demodyfi decentralized, stake-based governance, and prevents being any security risks from centralization. Since all management is on-chain, token holders will have full insight into the fund’s management and can vote to replace a general councilor.
> **Demodyfi** is a decentralized network that will be governed by a community of token holders, including core developers, application developers, collators, users, and other contributors. Our aim is to facilitate the engagement of token holders.
Demodyfi's governance tokens allow token holders to govern the protocol, and in some cases enable them to capture value directly from our Dapp application usage:
* **Proposals** — actions or items being proposed by token holders. This need to be seconded by other users in order to move to referendum
* **Launch period** — how often new public referenda are launched
* **Voting period** — time token holders have to vote for a referendum (duration of a referendum)
* **Voting** — referenda are voted on by token holders on a stake and conviction weighted basis. Convictions refer to the time that token holders wish to lock their tokens when voting: the longer they are locked, the more weight their vote has. Referenda that pass are subject to delayed enactment so that people who disagree with the direction of the decision have time to exit the network
* **Lock period** — time (after the proposal enactment) that the tokens of the winning voters are locked. Users can still use this tokens for staking or voting
* **Delegation** — act of transfering your voting power to another account for up to a certain conviction
### On-chain governance
* **Referendum** — a proposal for a change to the Demodyfi protocol including values for key parameters, code upgrades.
* **Voting** — referenda will be voted on by token holders on a stake-weighted basis. Referenda which pass are subject to delayed enactment such that people that disagree with the direction of the decision have time to exit the network
* **Treasury** — A collection of funds that can be spent by submitting a proposal along with a deposit. Spending proposals must be approved by the council. Rejected proposals will result in the proposer losing their deposit
### Price stability mechanisms
Oracles are essential for the normal operation of the protocol that DMOD Token holders may vote to add new Oracle or remove existing ones. DMOD Token holders may vote to make a strategical decision on protocol upgrade as the whole network grow, such as whether to upgrade the existing network from a Polkadot Parachain to an independent chain bridging to Polkadot. Oracles are essential for the normal operation of the protocol that DMOD Token holders may vote to add new Oracle or remove existing ones. DMOD Token holders may vote to make a strategical decision on protocol upgrade as the whole network grow, such as whether to upgrade the existing network from a Polkadot Parachain to an independent chain bridging to Polkadot.
###
# Unified Account Experience
One of the primary advantages of building and focussing on Polkadot is to consolidate its unique parachain based architecture to achieve interoperability with different protocols, both public and permissioned chain, which opens up potential sources of liquidity to Demodyfi. It potentially allows separate and isolated blockchains to be networked together, creating an “internet of blockchains”, where private chains can be firewalled from public chains like Ethereum, but still be able to communicate with each other via pre-defined state-transition and functions, similar to the internet handshake protocols used today to establish networking.
The first step is to begin implementing on Polkadot and achieving interoperability with other compatible parachains.
## **Unified Account Experience**
Moonbeam’s focus is to create a fully Ethereum-compatible environment on Polkadot with the best user experience possible. With Unified Accounts, a user will only need a single H160 address, with its corresponding private key, to do everything we mentioned above including both EVM and Substrate functions. Consequently, the user does not need to move balances between 2 different accounts and is able to access all the features with a single account and private key. Demodyfi is making this possible for the end-user by implementing efficient cross-chain swapping between wallets like Metamask and Polkadot.js
## Import an H160 Account
Let’s see how we can import our already existing MetaMask account to Polkadot JS Apps. First, navigate to the accounts section, and click in the add account button.
**Non-custodial service**\
Demodyfi is a decentralized, non-custodial protocol; assets are controlled by the users themselves and not stored on the platform. We empower the user to keep storage of their own private keys and cryptocurrency assets, while the team is working in the backend, optimizing yield for the users without compromising security
# Ecosystem Fits
Defi lego blocks for Demodyfi
There are some existing projects which can support and work with the Demodyfi Protocol.
* [Polkadot](https://polkadot.network/): Polkadot enables cross-blockchain transfers of any type of data or asset, not just tokens.
* [Substrate](https://www.substrate.io/): Substrate comes with everything you need to build your blockchain. Use Substrate’s pallets to easily create what you want, or craft your own custom logic.
* [Moonbeam](https://moonbeam.network/): Moonbeam is a new Polkadot smart contract platform that makes it easy to build natively interoperable blockchain applications.
*As we are still in full development more fits will be announced very soon.*
# Token
The token serves as the native currency in the protocol itself.
The token serves as the native currency in the protocol itself. Token/DeFi Economics. The mechanism is predicated upon a digital token called DMOD which is a cryptocurrency designed to provide traditional financial products and services without the centralized authority of banks and financial institutions. The token is distributed as a reward for contributions made to the platform and provides access to a variety of economic incentives. The token allows its holders to participate in decisions affecting the parameters of the system. The DMOD token will have an annual inflation rate based on the initial token supply post token sale, read the token economics section for more info.
### It serves two key functions in Demodyfi Network:
**Network Utility Token**
DMOD is a native fee token (e.g. fee for native transactions and smart contracts), and also utilized in staking for collator, staking for oracle and other network activities.
**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.
**Mainnet DMOD**\
A fixed amount of DMOD (100,000,000) will be minted on genesis and distributed according to our token economic plan.
# DMOD token use cases
### Summary
Demodyfi believes that providing an incentive service is only the first step. The liquidity dilemma of Staked Assets will not be fully solved unless DMOD can be freely traded, exchanged or used in other financial applications. Therefore, Demodyfi will strive to create comprehensive use cases such as DEX, cross-chain lending and other assets for DMOD.
### Use Case 1: CEX
Demodyfi will cooperate with centralized exchanges to list DMOD/Token, DMOD/USDT, and other pairs to further enhance the circulation and liquidity conditions of DMOD. We strive to add more partners and liquidity providers, including dedicated liquidity programs for all users.
### Use Case 2: DEX
DMOD holders can not only redeem native tokens from the Demodyfi's Staking Contract, but also sell DMOD on a variety of venues with DMOD/Token, DMOD/ETH, and DMOD/USDT pairs.
So Demodyfi will list DMOD trading pairs on different DEXs to provide enough liquidity for DMOD holders. Meanwhile, Demodyfi will implement liquidity incentive programs in order to promote liquidity for DMOD on DEXs.
### Use Case 3: Lending Protocol\*
Besides trading, Demodyfi will work with decentralized lending protocols to provide lending services for DMOD holders. If the DMOD holder doesn't want to sell DMOD but still wants liquidity, he or she could deposit DMOD on lending platforms to borrow ETH or USDT.
The team is in talk with different tier 1 projects to collaborate with this. Keep an eye on the docs page to stay updated.
### Use Case 4: NFT
Demodyfi will work with NFT features by providing options to showcase for your NFT's to the openmarket. Next to this feature add liquidity to the different pairs to earn DMOD.
### Use Case 5: Governance
The $DMOD token’s main utility is serving as the governance token for the Demodyfi dex.
Holders of the $DMOD token will also be able to receive a portion of all of the % transaction fees collected by the Demodyfi dex. When the fees are distributed, you’ll get fees from swaps, flash loans, NFT operations, and any other future assets added to the dex, in the form of the ERC20 token
This means holding $DMOD gives you diverse and full exposure to the Demodyfi DEX and NFT industry through fees collected and returned in the form of the various created ERC20 tokens for those projects. In the long term, $DMOD could be used as a hedge against the NFT industry itself.
Details on the mechanicism will be announced later.
### Use Case 6: Insurance\*
Demodyfi will work with insurance protocols to provide insurance services to DMOD original validators. If validators' deposits are slashed, their loss will be insured. The team is in discussion with Tidal Finance, but an official partnership has not yet been announced.
# Tokennomics
### **Token Metrics**
Demodyfi’s native token, $DMOD, has a total supply of 100,000,000 million tokens, with the number of tokens sold the team will dedicate a part of these funds to an Uniswap listing with added liquidity to provide a fair chance for the Demodyfi community members around the world to acquire DMOD tokens.
In addition, we are also planning to set up an IDO event.
> * Total supply: 100 million DMOD
### **Economy Setup & overview**
| Towards | % | Amount | Vesting |
| ---------------------- | ----- | ---------- | ------------------------------------------ |
| Seed | 4,50% | 4.500.000 | 5% at TGE, rest vests over 12 months |
| Private | 6,00% | 6.000.000 | 10% at TGE, rest vests over 12 months |
| Public | 2,00% | 2.000.000 | 33% at TGE, rest vests over 33% monthly |
| Liquidity mining | 4,50% | 4.500.000 | Vests over 5 years\* |
| Listings and campaigns | 4% | 4.000.000 | Exchange Listings |
| Technology (Audits) | 8% | 8.000.000 | 4 months cliff, then linear over 2 years |
| Team | 15% | 15.000.000 | 6 months cliff, then linear over 3 years |
| Advisory | 8% | 8.000.000 | 4 months cliff, then linear over 3 years |
| Community rounds | 13% | 13.000.000 | 20% initial and remaining vested quarterly |
| Treasury / Reserve | 25% | 25.000.000 | Governance (locked in Treasury) |
| Marketing & Ecosystem | 10% | 10.000.000 | 20% initial and remaining vested quarterly |
# Token distribution
*This section describes a part of the token distribution. The parachain offering IPO 18% (is described in the IPO section)*
DeFi Protocols have made use of liquidity programs to jumpstart growth and distribute protocol tokens to community members. To that end, 50% of all DMOD tokens are to be distributed through various yield farming and liquidity incentives across a number of years.
**Seed – `4.500.000 DMOD` /** \
**development / operations / cloud / marketing**
* `600.000 DMOD` will be allocated in development. `100.000 DMOD` for technical experiments and innovation based on research.
* `300.000 DMOD` will be distributed to daily operations including outside contributors, this includes operating and overhead expenses like additional utility services.
* `200.000 DMOD` will be reserved to start in initial marketing activities.
* `100.000 DMOD` will be reserved for cloud and hosting.
**Private `6.000.000 DMOD` /** \
**Market Making / Marketing PR / Legal / Security / Airdrops /**
* `300.000 DMOD` will be distributed in the first year through liquidity programs and other Defi initiatives. The goal applies a boost the DMOD liq. Ratio and to set up a fair price for the community.
* `150.000 DMOD` will be distributed to set up articles on different marketing mediums.
* `130.000 DMOD` Legal and business efforts to advance the adoption of the protocol.
* `240.000 DMOD` - for security measures.
* `100.000 DMOD` – Airdrops
*The Project Treasury is an entire community and team governed pool of `DMOD`. It should be used for making grants for development of the Demodyfi technology, open-source upkeep of the code, future audits of smart contracts, bug bounties through responsible disclosure, possible additional cross-chain implementations, creation of new protocol level features and updates.*
**Team `16.000.000 DMOD` / 16% – 6 months cliff, then linear over 3 years**\
Team tokens are retained for founders and original early contributors to Demodyfi. The Demodyfi Protocol was conceived in late 2019 and work began in early 2020. The Demodyfi concept has been over 1 years old since conception. Although we are close to the Beta-testnet being launched, the contributions of founders and early members that have been working on Demodyfi were crucial to releasing the protocol. The team will continue to work on Demodyfi for its lifetime along with the greater community.
**Strategic Advisors and Outside Early Contributors `7.000.000 DMOD` / 7% – 8 months**\
Advisory tokens are allotted for strategic work done in legal, technical, and business efforts to advance the adoption of the Demodyfi protocol. The tokens are vested evenly over 3 years.
**Private Investors / 5,5% – 10% day 1, rest vests over 12 months**\
The first round for whitelisting ETH wallet addresses started in late December 2020.\
\
**IPO**\
Swap participants will be able to exchange their DMOD tokens at the best possible Initial\
Parachain Offering price which we will share the expected % for bonus and reward users for helping our auction with $DMOD tokens. The IPO sale will be held in the form of a lease sale, where DOT token holders lease their tokens to Demodyfi for the purpose of participating in a parachain auction. DOT token holders will always get the full amount of their tokens back. When this will happen, respectively are:
* If Demodyfi does not win the parachain auction
* If Demodyfi wins the parachain auction, tokens will be distributed back at the end of the parachain lease
# Landscape competition
Besides the basic features, the Demodyfi product is offering many different services than Uniswap.
Our upcoming MVP relies heavily on our cross-chain capabilities. Combined with our governance model, unique $DMOD staking features, we believe that Demodyfi is the correct approach for token communications.
# The Development Team
Demodyfi consists of a multidisciplinary team, as well as experienced system developers, architects and researchers. From programming smart contracts to developing various (crypto) platforms to providing lectures in blockchain development for Hyperledger and Google Code -in mentorship.
What we have in common is the combination of vision and experience to participate in the paradigm shift for financial systems. This is how we came up with the idea of building a decentralized platform for many users in the crypto space.
Our team is expanding and growing exponentially, with several members joining the team. We have already received backings from a consortium of very well-known investors.\
\
*Some developers are not shown at the moment, as they are in the process of ending their agreements with their current employers and will join the roster eventually. This section will be updated in time.*
# Community Engagement
We are strategic planning to extend our reach specifically to other markets globally as the project gains more popularity:
Exposure on Leading Media Channels: We want to release additional articles on Forbes, The Block, CoinDesk, CoinTelegraph, and many other leading media channels.
**Ecosystem Development Lead Program:** As we are always searching for contributors, we will launch an Ecosystem Development Lead Program to recruit and get more technology and development contributors involved in our project.
Promotion of Online and Offline Events: We will publish an article on medium upon the progress of this project. Our goal is to join Polkadot related events and do different AMA sessions to promote the Demodyfi projects to the Polkadot community.
**Community engagement strategies include:**
Bounty Program for General Community: We will reward users who contribute positively to community building and content creation through an Ambassador Program. The community management team will be available 24/7 to answer questions and facilitate discussions in community channels.
Also check out the Demodyfi ambassador program [here](https://demodyfi.medium.com/ambassador-program-3a6dfa7a185d).
# Future goals
**Scale & Growth**
Demodyfi has regional communities all over the world. We are strategic planning to extend our reach specifically to other markets globally as the project gains more popularity.
As we mentioned before Demodyfi wants to integrate more innovative features.
* Integrate stable coin DUSD in the near future.
* Integrate unsecured DOT loans.
* Integrate Moonbeam's GLMR token (incentives)
Current community growth strategies of Demodyfi include:
* Expanding the ecosystem through strategic partnerships with established projects and initiate collaborated decentralized liquidity pools, enabling cross-chain lending possibilities.
* Organizing and participating in various crypto and blockchain events to build more engagement with our users and the community.
* Providing weekly and monthly updates to the community about the project’s latest news and technical developments.
* Amplifying Demodyfi’s reach to new markets and communities with the help of the ongoing [Ambassador Program](https://demodyfi.medium.com/ambassador-program-3a6dfa7a185d).
* Providing online product demos and hosting webinars to engage with developers.
# Demodyfi Staking
This is a general guide to staking on Demodyfi with answers to common questions about the staking process and purpose.
To stake in The Demodyfi Pool, you must have $DMOD tokens. You can get $DMOD tokens by trading on [PancakeSwap](https://exchange.pancakeswap.finance/#/swap?inputCurrency=0x002d8563759f5e1eaf8784181f3973288f6856e4\&outputCurrency=0xbb4cdb9cbd36b01bd1cbaebf2de08d9173bc095c) and [Uniswap](https://app.uniswap.org/#/swap?inputCurrency=0x5f6c5c2fb289db2228d159c69621215e354218d7\&outputCurrency=ETH), DMOD-ETH UNI LP token <> DMOD-BNB Pancake LP Token
When you deposit assets to the Demodyfi liquidity pool and stake your tokenized pool shares, you are eligible to earn both trading fees (mainnet) and staking rewards. *This is because as a liquidity provider, you face **asset risk** (by supplying your tokens to the pool) and **volatility risk** (because price swings can lead to impermanent loss). In exchange for this “work”, you are rewarded with*:
1. **Trading fees** e.g. Uniswap V2 offers a 0.03% fee to anyone who supplies liquidity to a token pair.
2. **Staking rewards** in the form of DMOD tokens.
When you contribute liquidity to the DMOD/ETH Uniswap pool and stake your DMOD/ETH shares, you’ll be rewarded in $DMOD, while the same applies for BNB users.
Read more about it [here](https://demodyfi.medium.com/staking-and-lp-incentivization-1e001b651973)
### FAQs
#### **Q1. Is there a limit to the amount of DMOD tokens a single address can stake ?**
**Ans.** There is no limit to the amount of tokens you can stake.
#### **Q2. Is there any locking mechanism for the pools ?**
**Ans.** There is no locking mechanism, you can unstake your tokens anytime and withdraw. Although the reward accumulated for that month will be nullified.
**Q3. When can you harvest your reward ?**
**Ans.** You can harvest your reward right after a month/epoch ends, and not during a month.
**Q4. Can I withdraw my stake during a month and harvest the reward for the duration I was staked ?**
**Ans.** No, You need to keep your stake throughout the month in order to get the rewards, mid epoch withdrawals will result in reward nullification.
**Q5. Can someone stake at the end of the month and still get rewards for the whole month ?**
**Ans.** No, the staking algorithm takes the time of deposit into account and adjusts the stake that will be considered in that epoch. The total stake will be accepted in the next month automatically.\
For Eg - Roughly, If 15 days have passed in a month and someone stakes 100 tokens only 50 will be considered for that month and the full 100 tokens will be staked for the next month.
**Q6. What does harvest do ?**
**Ans.** Harvest transfers all the reward DMOD account into your wallet and keeps the staked DMOD in the pool only.
**Q7. What does harvest and stake do ?**
**Ans.** Harvest and stake in`both pools (DMOD and DMOD_LP)` deposits the rewarded DMOD into `DMOD Pool`, this enables you to compound your DMOD stake without wasting gas fees.
**Q8. How can I transfer my DMOD from Ethereum or BSC or vice-versa ?**
**Ans.** The bridge is live on
# How to Stake
This is a guide to staking on Demodyfi. If you are ever in doubt, reach out to an admin in the Telegram group.
## Getting Started
Users are also able to stake with Walletconnect, Portis and Authereum
1 - Go to *staking.demodyfi.com*
2\. Set up your wallet.
3\. Connect it to the Network, Ethereum/Binance Smart Chain
4\. Double-check your Demodyfi balance.
5\. Approve the amount of tokens you want to stake.
6\. Confirm the Stake transaction
7\. Enjoy the rewards.
8\. Every epoch you will be able to come to the dapp and harvest the rewards or restake them to the pool in one click.
> As always, reach out to us on [Telegram](https://t.me/demodyficommunity) from live chat questions and discussions.
{% hint style="warning" %}
You must connect with your wallet, otherwise you will see that you are “Disconnected”.
{% endhint %}
# Yield Farming
Users can earn returns passively by making their coins "work for them". Demodyfi provides a variety of features that allow users to yield farm and enhance returns while making the protocol stable.
### What is Yield Farming?
Yield farming refers to the practice of staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency. On a high-level, it means putting your coins to work. This innovative yet risky and volatile application of decentralized finance (DeFi) has skyrocketed in popularity recently thanks to further innovations like liquidity mining.
Demodyfi incentivizes *yield farmers* or anyone who wants to generate yield by rewarding those that stake their coins into our liquidity pools. This effort entails adding liquidity to Demodyfi's network, and staking liquidity provider LP tokens. Projects incentivize this behavior when it enables them to function more efficiently.
### User guide
In general, using Demodyfi DEX on the Moonbeam network is not very different from using it on the Moonbeam network, when you visit [`https://app.demodyfi.com`](https://app.demodyfi.com/)and use MetaMask to connect to the app, you only need to select Moonbeam in the network options provided by Demodyfi DEX to automatically help you add the Moonbeam network RPC.
**In short, how to participate in e.g. GLMR LP Farming or Staking on Demodyfi:**
1- Visit [**`https://app.demodyfi.com`**](https://app.demodyfi.com/) and connect wallet with MetaMask, select “Moonbeam Network”
2\. you can buy $DMOD on two exchanges, [**UNISWAP**](https://app.uniswap.org/#/swap?chain=mainnet) **OR** [**PANCAKESWAP**](https://pancakeswap.finance/swap). Make sure to confirm the token addresses, which you can find in the announcement channel or provided by the admins in the discussion channel. (we will share the contract addresses below, just to make sure).
2- Transfer GLMR to your account(If you already have a GLMR balance in your account you will not need to transfer it to another account, or you can choose to withdraw GLMR from CEX. BTW, make sure you don’t swap all your balance and leave some for gas fees).
3- Move USDC, ETH, USDT from **Ethereum** or **Polygon** to **Moonbeam** via [**`http://bridge.demodyfi.com/`**](http://bridge.demodyfi.com/)(more bridge support will be added)
4- Go to the **“Earn”** page in [Demodyfi DEX](https://app.demodyfi.com/) and perform LP farming or GLMR staking (More farming pools will be added one by one, keep eyes on it)
> **Official Demodyfi Contracts:**
**Ethereum**\
[*https://etherscan.io/token/0x5f6c5c2fb289db2228d159c69621215e354218d7*](https://etherscan.io/token/0x5f6c5c2fb289db2228d159c69621215e354218d7)
**Binance Smart Chain** [*https://bscscan.com/token/0x002D8563759f5e1EAf8784181F3973288F6856e4*](https://bscscan.com/token/0x002D8563759f5e1EAf8784181F3973288F6856e4)
**Moonbeam**[\
*https://moonscan.io/token/0x73ff1cc774883e22bf6ea998b55b5e7211e08b12*](https://moonscan.io/token/0x73ff1cc774883e22bf6ea998b55b5e7211e08b12)
# Multichain Bridge
Demodyfi allows users to transfer tokens like ERC20 and ERC721 between Moonbeam, polygon and BSC Chain freely without any central authority. This development is expected to extend the functionality of Demodyfi and introduce Moonbeam users to the asset and NFT protocol.
## **Integration**
*“The Demodyfi team is constantly working in being creative and to simplify the process for Ethereum-based projects that want to attract liquidity towards and from Polkadot. Through our integration with ChainSafe on the ChainBridge project, we can offer a fully and freely functioning bridge from the Demodyfi platform in cross chain interoperability."*
# The guide of Metamask and Polkadot.js wallet
update soon
# FAQ
## **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](https://polkadot.network/).
## **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](https://web3.foundation/).
## **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](https://www.parity.io/).
# Contact us
## There is NO customer support for Demodyfi...Yet
but If you're experiencing issues,
1. First check [FAQ](https://docs.demodyfi.com/faq) for your error
2. If you can't find a solution, try reaching out to your local [Telegram group.](https://t.me/demodyficommunity)
**Admins will NEVER send you a direct message. If anybody approaches you directly on e.g. Telegram pretending to represent customer support, please block them and report them as spam.**
**NEVER, under any situation, should you ever give someone your private key or recovery phrases. Immediately block and report anyone who asks for them.**
## **Socials**
Medium:
Telegram: [https://t.me/](https://t.me/DemodyFI)Demodyfi
Twitter: [www.twitter.com/D](http://www.twitter.com/demodyfi)emodyfi
Github: [https://github.com/D](https://github.com/DemodyFI)emodyfi\
\
Official website: [https://www.demodyfi.com](https://www.demodyfi.com/)
Email:
Press and Marketing: