How can DRW promise such a high APY?
Drw makes it possible for holders to receive incredible returns on their investment. The auto-staking protocol rewards holders with 2.041% a day with the compounding APY of 159,402.57%
So you might be wondering, how is this even sustainable?
Drw leverages a number of revenue-generating mechanisms to make this possible:
Doge Reward uses the Doge Reward Insurance Vault (DIV) and the Doge Reward Treasury Fund (DTF) to farm stable tokens through our Crypto farming protocol. We invest a portion of the funds in the highest APY farms and then the profit is brought back to Drw and deposited into the treasury funds.
Because Doge Reward seeks yield-generating opportunities across different protocols, it means that we can seek the highest profiting yield farms. This strategy will enable us to deliver at least ~100% in additional returns a year to better support the Drw price floor.
That's why we're confident we can support a higher APY than any other project while still being sustainable long term.
The Doge Reward protocol takes a portion of the trading fees (buying and selling) and utilizes these to further sustain and back the protocol and its liquidity. So no matter whether investors are buying or selling, this contributes to the DIV and DTF to help sustain the protocol.
Protocol owned liquidity is new approach pioneered by Olympus DAO to provide liquidity to tokens on decentralized exchanges. Instead of relying on providing incentives to the market to provide liquidity to liquidity pools, the protocol owned liquidity model instead utilizes a “bonding” mechanism. Bonding essentially involves the protocol selling their tokens at a discount to buyers, who in exchange will provide another token (e.g., DAI), which forms part of the protocol’s treasury. The treasury can then be deployed to provide liquidity directly to DEXs (earning trading fees) and can be invested to generate returns.
Protocol owned liquidity is an innovative solution to the mercenary capital problem, whereby protocols engage in a so-called “race to the bottom” to provide higher and higher incentives to attract liquidity providers, in-turn diluting the value of the protocols through the high issuance of tokens.
Employing the use of protocol owned liquidity (POL) in combination with the underlying mechanics of Drw is a key distinction that enables Drw to generate an additional revenue stream (Pancakeswap give 0.25% of each transaction for Liquidity providers) allowing it to deliver additional added value and increased APY to its token holders.
Every week, 1 to 4% of the total circulating supply will be burned. This percentage will evolve over the time based on our Automatic Burn algorithm. The burn calculation will be updated daily according to the number of holders and the tokens held by each.
With our burn program, 1-4% of total circulating supply is automatically burned each week, so Drw total supply will constantly be deflating against your balance, while your balance is constantly increasing against Drw total supply. This built-in mechanism creates a true supply/demand metric to the Drw token as it becomes ever scarcer against your balance with time.
Just to be clear, if you just hold Drw , your share of total market cap will always be increasing because supply is decreasing. Even in a sideways market where there are no new investors, the value of your tokens will still be growing. When the market goes up because of new investors, the value of your tokens will grow even more, thanks to your share/total supply increasing continuously every week.
- Your token amount grows 2.041% / day & compounding to 159,402.57% a year.
- Your total token value in USD will grows as your shares/total Market cap increase because of 4% supply burned every week.
- Drw 's Market cap grows larger when new investors come in, but your shares/total Market cap does not decline but instead continues to grow, your total token value in USD will further increase.