dAMM is an uncollateralized lending platform for any token with algorithmically determined interest rates.
How dAMM Finance Works
- dAMM is an uncollateralized lending platform for any token with algorithmically determined interest rates. Any token with a liquidity pool on dAMM, market makers and investors can borrow on dAMM to provide liquidity and trade across all centralized and decentralized trading venues.
- Token suppliers and market makers interact directly with the dAMM protocol to both supply and borrow token liquidity without exorbitant fees, strenuous onboarding procedures and bilateral deal negotiation. Liquidity pools are unique to each token asset and entirely transparent/publicly accessible via their respective blockchains.
Liquidity pools for non-stable crypto-assets
Uncollateralized borrowing for whitelisted market makers and institutional borrowers
Algorithmically determined interest rates
dAMM Token Utility
dAMM will launch with limited governance (see: Governance page), but will have several additional utilities:
dAMM can be staked for a portion of protocol revenue.
dAMM can be staked to vote on interest rate model and utilization rates of individual pools.
dAMM can be staked to vote on future allocations of bdAMM on a pool by pool basis.
Rewards our most active borrowers and lenders
Creates positive value for the protocol as a whole
As such, dAMM tokens will be distributed through a new mechanism we call, “Liquidity Bonding.”
Liquidity Mining on dAMM does not pay out in the form of dAMM directly, but rather bdAMM.
bdAMM can be redeemed 1:1 with dAMM, at a discount to the market price of dAMM. The discount rate linearly decreases from the token generation event until the end of the first year of dAMM pools being available.
The capital generated from Liquidity bonding is immediately deposited back on the platform into the form of additional TVL in high market cap assets (WBTC, WETH, USDC). A certain portion of the capital as well will be deployed off platform to diversify risk.