To the DEA & DEUS Farmers and Farmerette
it's your chief lafayette
We were pretty busy the last few weeks, finished vault designs/back-end so before we start with the information regarding DEA:
VAULTS WILL LAUNCH VERY SOON!
If you don’t know what the vaults are please check that Youtube video on my channel:
Last week I realized in the DEUS price chat that many people still don’t really understand the basic concept of the two different states of DEUS
So I wrote this blog post to clear ALOT on the “mystery” around DEA & the rebase.
the current DEUS Ecosystem called “DEUS-V0.X” (without a stablecoin)
later DEUS ecosystem called “DEUS-V1.0” (with a stablecoin)
Important to understand
that the unstable DEA we currently use and the stable DEA we wanna use later, have nothing in common, other than the name.
So for that purpose, we should start them:
DEA-V0 (that is not a stablecoin and has unlimited potential price upside)
DEA-V1 (that is a stablecoin and is pegged to $1)
Challenges to master — the Peg.
DEA-V1 is currently set to be released in Q2-Q3 of 2021, designing an algorithmically stablecoin is the most complicated task in crypto, in my opinion.
DEA- V1s will be designed to have a peg that can’t fail.
So there will be weeks/months of testing with algorithms, script bots, and also machine learning simulations, that help us understand the randomness of the markets and their impact on DEA-V1s peg.
When the current state of the DEUS system works without a stablecoin, and DEA is supposed to be that stablecoin, why do we even need DEA currently?
- to let people engage with the DEUS protocol -> farming DEA
- to distribute the asset that is used to farm in the next phase to our greatest protocol supporters.
- DEA is equally distributed for our users.
(that’s also the reason we completely removed the UNI / SNX / AMPL pools.
- have a speculative asset that users can speculate on forgetting their “10X”
Because of the DEUS bonding curve nature, the price sensitivity is pretty low, a lot of users complained in the beginning that DEUS didn’t “pump” enough.
But this creates a Situation that gives everything a little twist.
There is a transition between Farming DEA with DEUS — currently.
and Farming DEUS with DEA — in the Vaults.
that creates an unusual amount of selling pressure on DEA because holders are not aware of the fact that they will need DEA later to earn trading fees inside the system.
Price is always a factor of Demand & Supply.
currently, supply is high because we gave out so much DEA to yield farmers to keep them engaged with the protocol, but that “newly generated” DEA will soon come to an END.
This means there will be absolutely NO NEW DEA inside of the Ecosystem.
This means the supply of DEA will be drastically lower.
While the demand for DEA will drastically increase.
Why will demand for DEA increase?
to explain this we should take a deeper look at the actual fee structure of the system later.
future streams of revenue will be constantly added to the DEUS ecosystem
For now, there will be 3 streams of revenue.
- registrar transfer + trading fees.
- registrar trading losses.
- sand token transfer + trading fees.
Already in discussion/research
- (possibly a DEUS transfer + trading fee)
- investing through DEUS in other yield farming protocols.
The most fees will be earned in Balancer pools, inside of those balancer pools you will need DEA as a base currency.
We choose DEA as a base currency because DEUS as a Token already gets enough benefits from the buyback mechanism inside of DEUS Swap.
For example, the highest-rated Balancer pool that gets 50% of all fees has the following token allocation:
DEUS Balancer Pool
- 50% DEA
- 25% sDEUS-DEA
- 7.5% sDEUS
- 7.5% sDEA
- 10% sDEA-USDC
so say you have 10k to allocate, it would look like this:
- 5k would be in DEA.
- 1.5k SDeus & 1.5k DEA, (from providing Liquidity to Uniswap and locking the LP tokens in Vaults)
- 0.75k sDEUS. (from locking DEUS in vaults)
- 0.75k sDEA. (from locking DEA in vaults)
- ($250sDEA & $250USDC) (from providing Liquidity to Uniswap and locking the LP tokens in Vaults)
Thank you for reading up on the important things of DEUS, and showing us our support, this project would be nothing without you!
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