# 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.
