Davos Protocol Overview

What is Davos Protocol?

A cross-chain lending and borrowing platform that offers the DAVOS Stable Asset as collateral, providing sustainable yield through a liquid staking mechanism built upon the MakerDAO architecture. The platform prioritizes sustainable growth while maintaining price stability, presenting users with the opportunity to maximize returns while minimizing risk. A game changer in the world of decentralized finance.

Main Features
Inflation-proof stablecoin
Liquid staking for scalable yield
Governance token (DGT) for shaping monetary policy
Accepts Liquid Staking Tokens (LSTs) as collateral
Ability to stake or lend DUSD
Blockchains
Polygon

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Frequently asked questions

Davos Protocol is a collateralized debt position (CDP) protocol that addresses the limitations of traditional CDPs in the decentralized finance (DeFi) landscape. It utilizes Liquid Staking Tokens (LSTs) as collateral to unlock the creation of DUSD, an inflation-proof stablecoin. Users can borrow DUSD by providing LSTs as collateral and tap into the potential of their staked assets, amplifying their returns. Additionally, users can stake and farm DUSD, compounding their interest and maximizing their capital. The governance token of Davos Protocol, DGT, empowers holders to shape the monetary policy of DUSD stablecoin. Users can participate in shaping the monetary policy by locking DGT in 80-20 Balancer Liquidity Pools and exercising their veDGT voting power on Liquidity and Borrowing Gauges. This protocol provides a safeguard against inflation, preserving wealth and purchasing power.

The purpose of the DGT governance token is to govern the monetary policy of the DUSD stablecoin, which is an inflation-proof stablecoin created by Davos Protocol. Holders of the DGT token can participate in shaping the monetary policy by locking their tokens in 80-20 Balancer Liquidity Pools and exercising their voting power on Liquidity and Borrowing Gauges. The DGT token also serves as a safeguard against inflation, preserving wealth and purchasing power. Additionally, users can stake or lend DUSD and earn more DUSD or DEX rewards.

Davos Protocol accepts Liquid Staking Tokens (LSTs) as collateral for borrowing the DUSD stablecoin.

Yes, you can stake or lend DUSD through the Davos Protocol. By leveraging Liquid Staking Tokens (LSTs) as collateral, users can borrow the DUSD stablecoin. Additionally, users can stake and farm DUSD, compounding their interest and maximizing their capital. The DGT governance token empowers holders to shape the monetary policy of DUSD.

The main features of the DUSD stablecoin are:

  1. Safeguard against inflation: DUSD is designed to preserve wealth and purchasing power by providing a stable value that is resistant to inflation.

  2. Stake or lend DUSD: Users can stake or lend their DUSD, allowing them to earn additional DUSD or rewards from decentralized exchanges (DEXes).

  3. Provide DUSD liquidity to DEXes: Users can provide liquidity to DEXes by pairing DUSD with other stablecoins, allowing for seamless trading and liquidity provision.

  4. Earn more DUSD or DEX rewards: By participating in the DUSD ecosystem, users have the opportunity to earn more DUSD or rewards from DEXes.

  5. Minimum borrowing rate: DUSD has a minimum borrowing rate of 5.25%, which is determined by the higher of the CPI Annual Change or Central Banks' reference rate.

  6. Governance via DGT token: The DGT governance token empowers holders to govern the protocol's monetary policy, allowing them to shape the future of DUSD.

Overall, DUSD is an inflation-proof stablecoin that leverages liquid staking tokens as collateral, providing users with the ability to stake, lend, and earn rewards while preserving their wealth and purchasing power.

To participate in shaping DUSD monetary policy, you can lock DGT (the governance token of Davos Protocol) in 80-20 Balancer Liquidity Pools. By doing so, you can exercise your veDGT voting power on Liquidity and Borrowing Gauges, which allows you to influence yield distribution and incentivized borrowing across diverse collateral pools. This gives you the opportunity to have a say in the governance and decision-making process of the DUSD stablecoin.

The minimum DUSD borrowing rate is 5.25%, representing the higher of the CPI Annual Change or Central Banks' reference rate.

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