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.