We’re excited to announce the launch of our first synthetic application on Friday, April 30. DAFI “Simulate,” enables users to create dTokens from existing crypto-assets. It’s live here.
By connecting your Metamask wallet to the platform and using existing crypto-assets, such as wBTC, ETH, AAVE and LINK, you will be able to create synthetic tokens. These digital assets will be pegged to the underlying crypto’s demand, with very low fees.
Create Synthetic Bitcoin, Ethereum & more
This first iteration of DAFI’s synthetic dTokens gives you the power to easily create synthetic dBTC, dETH, dAAVE, and dLINK from your Metamask wallet.
Synthetic dTokens will be pegged to the value and demand of these compatible networks and their quantity will change to create a demand-pegged model. These features would allow you to simulate the upcoming staking and social reward programs that DAFI will launch in June.
To take advantage of Simulate, you will be required to pay a small transaction fee of 5 MATIC to create synthetic dTokens. The fees collected are used to sustain the ongoing gas costs of Simulate until on-chain staking goes live in June.
The transaction fees also help collateralize the DAFI rewards. Simulate incentivizes those who want to learn more, but the rewards decline for each new user by 0.005, where:
n > n+1 and n — (n+1) = 0.005.
For example, the first creator of a dToken will have 50.00 DAFI allocated, but the second will have 49.995.
This reward mechanism is not designed to be lucrative, but rather an extra incentive for those wishing to experiment in the creation of the early-state dTokens.
It’s important to note that rewards are only going to be distributed when DAFI staking launches in June. Therefore, no DAFI will be distributed before then, and no DAFI will be distributed to users who don’t stake in the upcoming staking launch.
Users will see their staking position supplemented with the additional reward from participating in Simulate.
Zain Rana, founder at DAFI said —
While this is just the first product, it’s a step in the right direction for each decentralized network. There is a major evolution going to happen soon for every inflation model in Blockchain. It’s an enormous problem. We’re excited for the world to familiarise themselves with the first iteration of dTokens, and this comes just before synthetic dDAFI staking is launched this summer. It’s truly a testament to the team working tirelessly and the community who have believed in the big picture and the change we will bring to the entire decentralized ecosystem. Positive disruption, we’re only getting started.
- Metamask — Any metamask wallet will be able to plug into Simulate.
- Low fees — Instead of costly ETH gas prices, DAFI has deployed Simulate on the Polygon chain, a layer-2 scaling solution.
- Oracles — Simulate uses Chainlink oracles to obtain daily price feed data for the calculation of simple network demand.
- Create — By using one of the four compatible assets on the Polygon chain, users can see their balances and the amount of dTokens they can mint.
- Minting — Based on a user’s balance and the calculated demand factor, the quantity of the dToken can be minted on-chain, once.
- Simulating — Everyday your dToken balance will adjust relative to the demand of the underlying crypto-assets.
The dashboard shows your compatible assets and the balance of any dTokens already created. After you have connected to the Matic mainnet (see how), you can simply connect your Metamask wallet. To keep fees minimal, users can either use already Matic-native crypto-assets, or swap Ethereum tokens to their Matic-native equivalent, this is all detailed here.
Note — DAFI Simulate does not require you to lock any of your tokens, and does not yet involve staking. There is only a minimal gas fee and the creation fee (5.00 MATIC) to use. As these dTokens are not burnable, redeemable or collateralised — the frequency of dTokens balance-updates as well as price feeds updates will occur daily.
The primary goal of the Simulate platform is to allow users to create synthetics and show demand pegging.
You can see the balances of the dTokens you own and cycle through the four crypto-assets. It also shows you a simulated dToken value, which is what your [dToken quantity * underlying asset price] value would have been if used in staking.
While this product is a simulation, so this is not redeemable value, it demonstrates the changing rewards relative to volatile market demand, which in essence rewards longer term users in the system, later — once demand rises.
It is the first link between supply and demand to reinvent inflation in every decentralized economy, that will truly keep users in the system of any network, rather than forcing a high token inflation rate.
After choosing your desired amount, and using the Create function, you will be prompted with this next window.
The fee is 5.00 MATIC + Gas. You’ll notice that this is significantly lower than standard ETH fees.
It’s important to note that DAFI Staking will be available on multiple chains in the coming months, and like Simulate — it won’t rely on Ethereum alone. Users will be given complete flexibility and freedom of liquidity, which we believe is important.
You just created some synthetic dLINK. Congratulations!
The respective balance has changed and you can see the dLINK in your wallet. You will have to do the same for your other tokens as well.
Next? Your dTokens will update their quantity algorithmically everyday relative to the market demand of the underlying asset. This is a simulation of network-pegged rewards, and allows the DAFI community to create these synthetics before Staking goes live with actual burnable, convertible dTokens.
The Simulate platform functions only with Ethereum-based tokens which are on the Polygon (MATIC) chain. Regular ERC-20 tokens on Ethereum will not be compatible unless swapped, this is to ensure gas fees are minimised.
The contract addresses for the synthetic dTokens are as follows:
- dBTC — 0x897F44430Cc692CC3C4a21946D148657b93487f9
- dETH — 0xB7A3632Eb09BB9744bd4D404FB9d2d149C4F8D5b
- dAAVE — 0x50690DD0A3C6E5e2d1186D1C462b78d4a3921095
- dLINK — 0x80AAA1493AeFEc2E6b5D01A9e913d3330815cF6D
The contract addresses for the Matic-native Ethereum tokens are as follows:
- wBTC — 0x1BFD67037B42Cf73acF2047067bd4F2C47D9BfD6
- wETH — 0x7ceB23fD6bC0adD59E62ac25578270cFf1b9f619
- AAVE — 0xD6DF932A45C0f255f85145f286eA0b292B21C90B
- LINK — 0xb0897686c545045aFc77CF20eC7A532E3120E0F1
To swap an ERC20 token to it’s Matic form, you can use the Polygon bridge here.
DAFI Simulate completed a successful audit by Omniscia, there were no pending errors. As this is an early, uncollateralized iteration of dTokens, to only simulate their creation from crypto-assets, all of the suggestions were nullified & improved. The full report can be found here.
The four rows in the dashboard contain quantity of dTokens, price of the underlying token, and the difference in price since the last quantity-adjustment. On the right hand panel, you can also see demand factor, this varying factor multiplies your token quantity to create the dToken quantity dynamically.
[dToken = Native Token * Demand Factor]
DAFI Simulate will demonstrate how dDAFI and flavours would function, by adjusting their own quantity — to reward less when demand is low, and greater when the network grows. The next stage for everything decentralized, designed for the user.
About DAFI Protocol
DAFI uses synthetics pegged to different decentralized networks. Every blockchain, application, and cryptocurrency can create a flavour of a dToken to reward their early users, while still enhancing scarcity when demand is low.
DAFI can reward a network even when demand declines, by issuing synthetics that will reward user’s later — instead of earlier. Join us on Telegram for updates.
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