DUB Capital Efficiency Index
How DUB Farming Treasury is boosted:
0.25% mint fee for all new DUB tokens
Approximately 0.05% of the mint fee goes to swap fees, while the rest is farmed in the DUB Farming Treasury
5% of all daily rebases from DUB held in wallets is retained for reinvestment into the DUB farming treasury
10% of Dubble DEX trading fees are sold for stables and added to the DUB Farming Treasury
5% of DUB rebases in Dubble DEX LPs is sent to the DUB Farming Treasury.
What is the result or purpose of this action?
The DUB farming treasury holds more stablecoins than the total circulating supply of DUB
The proportion of stablecoins to DUB, known as the Capital Efficiency Index, grows permanently as people enter and exit DUB and as daily rebases accrue.
Each DUB token benefits from more than $1 of capital farming, making it more valuable.
DUB is overcollateralized, providing a natural insurance policy in case of fund losses.
The Capital Efficiency Index will continue to grow over time, resulting in higher yields and increased security with each rebase, mint, and withdrawal.
The Capital Efficiency Index of DUB
Holding DUB tokens for the long-term is encouraged by the system.
The number of DUB tokens held will produce more yield and have a higher collateralization ratio over time.
Yield will continue to grow relatively, reducing the need to seek higher yields from suboptimal protocols. This is due to each token having more capital behind it, enabling conservative investments.
What makes this beneficial for Dubble DEX?
DUB rebases in Dubble LPs are allocated for auto-bribing the respective LP. As DUB gains in CE, yields will rise, leading to an increase in autobribes (and potentially TVL), which in turn, raises DUB rebases, creating a positive feedback loop between DUB and Dubble DEX, benefiting all.
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