Overview
- Proposal Type: DeFiChain Improvement Proposal (DFIP)
- Objective: Implement a comprehensive structural reset of the dUSD / Real-World Asset (RWA) ecosystem to stabilize core mechanisms and establish strict algorithmic bounds for liquidity locks.
Description & Motivation
To address systemic challenges with the dUSD peg and the RWA ecosystem at their root, this proposal codifies a radical approach discussed by the community. By heavily restricting free-floating liquidity, limiting speculative features, and configuring price-dependent unlock boundaries, we aim to eliminate immediate sell pressure while ensuring a clear path back to a normal market environment once stability is achieved.
Technical Specification & Release Conditions
-
Token Lock (99.999%):
- Exactly 99.999% of the tokens currently present within the RWA system will be locked via a dedicated protocol-level smart contract architecture.
- This drastic reduction of circulating supply forms the baseline for the ecosystem reset.
-
Price-Dependent Release Triggers (< $0.95 or > $1.05):
- Underpeg Protection (< $0.95): If the dUSD price drops below $0.95, the system will trigger controlled liquidity parameter shifts or targeted releases to absorb shock and prevent a downward spiral.
- Overpeg Protection (> $1.05): If the dUSD price rises above $1.05, the protocol will automatically release fractions of the locked dUSD into circulation to prevent extreme premiums and maintain ecosystem liquidity.
- Exact algorithmic release increments per epoch will be dynamically configured by the Core Developers to ensure market absorption without causing supply shocks.
-
Future Swap (FS) Limitations:
- Future Swap usage will be strictly limited to a maximum of 10% of the average liquidity of the respective token within its corresponding DEX pool.
- This ensures the Future Swap acts solely as a theoretical backstop rather than a mechanism that risks being exploited during high volatility.
-
0.1% DEX Burn Fee:
- A permanent 0.1% DEX fee will be applied to all liquidity pools containing dUSD.
- 100% of the collected fees from this mechanism will be automatically and permanently burned to generate continuous deflationary pressure on dUSD.
-
Dynamic Interest & Stability Fund (SF):
- Implement Dynamic Interest rates to automatically adjust to system state and leverage imbalances.
- Establish and algorithmically fund the Stability Fund (SF) to defend the ecosystem and support future peg-restoration initiatives.
Community Discussion
This proposal formally structures the official consensus reached during the DeFiChain Future tokenomics brainstorming sessions:
DFIP Overview
- Requester(s): roepckie_source
- Reddit discussion thread (optional): https://www.reddit.com/r/defiblockchain/comments/1ljgb5y/defichain_tokenomics_discussion_part_1/
Describe your proposal
A second attempt to restore the DUSD's REPEG
How does this DFIP benefit the DeFiChain community?
With the blocking of 99.99% of the circulating DUSD supply, a short-term price correction (PEG) of $1.00 should be reached. This would increase the demand for DFI in the DFI-DUSD pool. Arbitrage opportunities exist in the price range between $0.95 and $1.05, further increasing DUSD usage. Should the PEG occur and thus lead to increased DFI usage, the associated price increase would benefit the entire community. Increased volume meets increased demand, which, with a continuing decrease in the DFI supply, would lead to a further price increase.
Non-obligation
I understand that vote of confidence for DFIP carries no obligations by any developers to implement the proposals. DeFiChain is a community projects. Pull requests can be submitted by community and reserved to be evaluated for safety and general community acceptance.
Invalid cfip
Overview
Description & Motivation
To address systemic challenges with the dUSD peg and the RWA ecosystem at their root, this proposal codifies a radical approach discussed by the community. By heavily restricting free-floating liquidity, limiting speculative features, and configuring price-dependent unlock boundaries, we aim to eliminate immediate sell pressure while ensuring a clear path back to a normal market environment once stability is achieved.
Technical Specification & Release Conditions
Token Lock (99.999%):
Price-Dependent Release Triggers (< $0.95 or > $1.05):
Future Swap (FS) Limitations:
0.1% DEX Burn Fee:
Dynamic Interest & Stability Fund (SF):
Community Discussion
This proposal formally structures the official consensus reached during the DeFiChain Future tokenomics brainstorming sessions:
DFIP Overview
Describe your proposal
A second attempt to restore the DUSD's REPEG
How does this DFIP benefit the DeFiChain community?
With the blocking of 99.99% of the circulating DUSD supply, a short-term price correction (PEG) of $1.00 should be reached. This would increase the demand for DFI in the DFI-DUSD pool. Arbitrage opportunities exist in the price range between $0.95 and $1.05, further increasing DUSD usage. Should the PEG occur and thus lead to increased DFI usage, the associated price increase would benefit the entire community. Increased volume meets increased demand, which, with a continuing decrease in the DFI supply, would lead to a further price increase.
Non-obligation
I understand that vote of confidence for DFIP carries no obligations by any developers to implement the proposals. DeFiChain is a community projects. Pull requests can be submitted by community and reserved to be evaluated for safety and general community acceptance.
Invalid cfip