Drac is Back!
Although Dracula Protocol is only several months old, we have already been through several fundamental changes in our tokenomics and core contracts. Throughout these changes, our community has stayed together and offered continuing support and feedback as to the direction they would like us to move towards.
We are currently finalizing our tokenomics and will be sharing them in a later post. This announcement is to give our community insight into the high-level features we have been working on and the direction we are heading in.
What is Dracula Protocol V2?
Dracula Protocol V2 is a universal DeFi adapter that streamlines yield-farming for platforms such as Badger DAO, SushiSwap, and Stabilize by automatically collecting the underlying rewards on a regular basis, selling them for ETH, and investing the earned ETH into an interest-accruing strategy.
By staking through Dracula Protocol, users save money through the automation of compounding yields and crowdfunding gas costs. The entire protocol is governed by the DRC token, which can also be staked to earn a percentage of all yields from underlying platforms.
What are the Features for V2?
New Interface: Dracula Protocol has a new, professional look! With a sleek interface designed to aid in our users’ experience, Dracula Protocol V2 will now cater to all levels of experience for DeFi users. The biggest improvement is that users can now deposit their base assets into the underlying platforms and stake through Dracula Protocol without having to leave our website. Along with browsing features and a dashboard view, our new interface has everything you need when yield farming!
Chi Gas Token: We’ve enabled the use of the Chi Gas token by 1inch for all aspects of our platform! Save gas by using Chi when interacting with Dracula Protocol. You can learn more about Chi here: https://1inch-exchange.medium.com/1inch-introduces-chi-gastoken-d0bd5bb0f92b.
Self-Funded Drain: Our drain mechanism will now be funded by a portion of all yields from underlying platforms. Think of this as a way to crowdfund gas costs with all Dracula Protocol users, meaning the more value locked in Dracula Protocol (TVL), the cheaper the costs will be per user! We will be calling the drain manually to prevent frontrunning until our integration with Keep3r is complete.
Auto-Compounding ETH: After each drain, all ETH that will be distributed to victim pools liquidity providers will be automatically deposited into an interest-earning strategy to maximize profits. Depending on the strategy, this will earn an extra 6% to 15% APR in addition to the yield earned from underlying pools.
This feature is particularly important, as by compounding ETH for our users simultaneously, we create a system where it can be more profitable to stake through Dracula Protocol than the underlying platforms, even with Dracula’s fees. By distributing gas costs amongst all our users and enabling compounding, users will earn more ETH by staking through Dracula Protocol compared to performing the same strategy manually.
The exact APRs vary by the underlying pool, the current value of underlying yields, their performance against ETH, and the compounding strategy. We have created a Google Sheet where you can calculate your exact profits by staking through Dracula Protocol below:
Adjustable Compounding Strategies: We are keeping the compounding strategies edited via our developer’s wallet, with a timelock. This allows us to change the compounding strategy to focus on the highest possible return possible, such as rotating between ETH returns on Aave, Compound, Yearn, or Alpha Homora.
Versatile Victim Adapters: We have updated our MasterVampire contract to be able to take on non-traditional victims, such as Badger DAO and TrueFi, which will enable a wide variety of platforms to be farmed through Dracula Protocol, including cross-chain farming.
Rewards in DRC or ETH: Although all yields earned from victim pools will remain in ETH while collecting interest in our compounding strategy, we are giving users the option to receive their rewards in ETH or DRC. This option will allow users who want to receive stable yields in ETH, or users who want to earn DRC to be able to stake and earn more ETH, to be able to exist simultaneously. Note: If you choose to earn your rewards in DRC, the ETH you would have received will be used to market buy DRC upon harvesting. DRC supply will be capped on the launch of our V2 contracts. More details about our tokenomics will be released in our next post.
Developer Test Environment: In order to incentivize the development of more victim adapters, we have created generic test-cases for developers to use when creating new contracts. Along with a 1–3 ETH bounty for each new victim adapter, we hope this will help incentivize community developers to work with us going forward!
We are also looking to hire an additional core solidity developer, so reach out if you are interested!
This post was meant to give a high-level understanding of where we are headed. Currently, we are finalizing the Badger DAO victim contract. Once that is complete, we will begin our audit with Solidity Finance, deploy our contracts, and integrate them with our new front-end. We will then have a period of in-production testing, which will be followed by our official launch of V2.
Upon our launch, we will include details about our finalized tokenomics for DRC, new victim adapters, ecosystem partnerships, and plans going forward.
Although vampires prefer the dark, we believe our future is bright!
Keep up with us on our socials for further updates, soon to come!