The Dracula Protocol
DeFi ecosystem has developed a lot during the recent years. Yield farming and liquidity mining have become a gold standard. However, it’s often associated with immense risks of long-term failure due to inflation, and undercollaterization of tokens.
Meta-level vampirism concept implemented in Dracula protocol delivers higher profits while mitigating those risks. It does so by aggregating all the yield farms and liquidity mining under a single smart-contract and unified web interface. We believe that our solution will help with the stability of the DeFi ecosystem.
Users receive DRC for staking tokens in protocol pools.
Each one of the DRC staking pools corresponds to a particular pool from one of the existing projects (aka victim) in the ecosystem. Our pools work as a proxy, transferring funds for staking to the targeted pools through different adapters. In addition to that, each pool has a so-called drain functionality, that claims reward from the corresponding pool, subsequently selling it for ETH, and performing buyback-and-burn strategy on DRC-ETH pool.
Every DRC minted is collateralised with real value. In a “default scenario”, where DRC tokens don’t have any additional internal value, farmers will receive the same profit and APY in ETH, as if they were to stake — claim — sold reward manually, but with considerably fewer spendings on gas to claim. APY in DRC pools is almost always higher than in related victim pools.
As a result, Dracula token has both inflation and deflation mechanisms and works as a second layer vampire. Furthermore, Dracula token has long term value as it tends to absorb all APY from the ecosystem.
It may sound a bit complicated at first, but in fact, It’s a pretty straightforward solution!
Please, follow the scheme:
- Our project provides users with proxy pools for staking funds.
- Staked funds transferred to the corresponding victim’s pools using adapters for the victims’ contracts.
- This results in Dracula smart-contract receiving victim’s tokens and the user receiving DRC.
- Invoking a drain functionality sells victims’ reward tokens for ETH, swapping ETH in the DRC-ETH pool and then burning DRC, increasing DRC/ETH ratio as a result.
Development plans & Governance
At the launch, Dracula protocol supports staking pools of Uniswap, Sushiswap, Pickle Finance, YFV finance, Luaswap. The flexible design of the adapters interface allows us to add new staking targets within a few days. We are going to add new staking targets and their pools after the launch.
We have plans to launch a governance token with limited inflation for further ecosystem management and development in the nearest future. This token will use DRC tokens as an origin. The Governance token will receive a part of the ETH and mining rewards from all the projects Dracula is connected to. So our protocol has the potential to become a form of DAO.
The protocol supports less exploitative strategies and may gather a significant portion of voting power in aimed targets in future and use it to promote the interests of our community.
The community will decide which proportions and variables pools should have.
It may be an interesting farmer-cooperation mechanism to support naturally good projects and exploit the worst ones.
Dev & Community building
We invite developers to take part in building the Dracula protocol, and we are planning to reward them. We ask community members to support us in our beginnings.
The default rate of minting is set to 100 DRC per block. More details of mint and its’ dependency from total TVL you may find in our second article.
Tokens will be distributed proportionally to the profitability of the victims’ pools with a small penalty for too high APY victims (Pools with amazingly high APY will receive . This ensures a fairer distribution of the reward across all pools.
After this initial stage, we will introduce a more flexible inflation mechanism that takes into account the amount of the funds locked in Dracula Protocol.
8% of all minted DRC will be sent to developers.
Longread regarding the overall mission, technical implementation and plans will be published soon.
We’ve received several independent audits. One of them:
by Valentin Mihov 16th October 2020 I did a security review of Dracula Protocol smart contract in the interval…
All contracts code is publicly available on GitHub.
DraculaToken is the token contract with custom voting functionality.
MasterVampire is the central contract to farm DRC.
Adapters are contracts that help MasterVampire to connect to its victims, effectively erasing all the differences between them.