Treasury
Last updated
Last updated
Whispers of a legendary treasure have reached your ears - a treasure hidden deep in the mountains, guarded by a powerful force.
Driven by curiosity and ambition, you embark on a daring quest, accompanied by valiant knights. The journey is long and the mountains are steep, but the promise of riches keeps you going.
As you traverse the depths, a strange growl pierces the silence, and you suddenly find yourself face to face with Draco, the fearsome dragon guarding his precious treasure. Are you smart enough to outwit Draco and claim your share of the treasure?
DracoFi Treasury is the heart of the project, making it unique and innovative. Most of the incentive mechanisms will originate from Treasury.
Treasury has two main functions:
Price Stability: Ensures $DRACO stability by allowing short- and medium-term arbitrage between open market and redeem price. This backing gives users confidence, as they can redeem their $DRACO for SOL held in the treasury at any time, ensuring there is always real value supporting $DRACO.
Sustainable Growth: Treasury funds staking rewards and helps maintain liquidity without the need to mint new $DRACO. Supply is finite.
Treasury is secured via Squads, with a 3/3 multisig between team members, ensuring all actions are transparent and require consensus. The treasury address is publicly available for verification:
Trading Fees: 5% tax on $DRACO trading, which contributes directly to the treasury.
Bond Sales: Bonds allow users to exchange SOL for $DRACO at a discountedprice, avoiding trading fees, but there is a vesting period, which helps quickly fill Treasury.
Unstaking Fees: 20% unstaking fee for users who do not wait until the end of their lock-up period. This fee is quite punitive but is designed to encourage users to stake their $DRACO for the long term.
LST Solana Rewards: Rewards earned from staking SOL in liquid staking tokens (LST) also contribute to the growth of the treasury, providing an additional source of income.
$DRACO: Primary expenses for the treasury are staking incentives, which are distributed every epoch in $DRACO. Another expense in $DRACO is bond sales, which help the treasury accumulate SOL.
SOL: The main expense in SOL is for redemptions, ensuring users can always redeem their $DRACO.
Treasury will initially hold 4,500 $DRACO. Trading volume at launch and the first bond sales will quickly add SOL to the treasury. The ideal composition that DracoFi aims to achieve is 20% in $DRACO, 30% in SOL for redemptions, and 50% in a basket of LST Solana.