Degov (DEGOV) Review
Degov (DEGOV) token, Debaseonomics is a combination of DEBASE, a flexible supply token, and DEGOV, a governance token,Degov (DEGOV) working together to solve the fundamental issues faced by elastic supply tokens. 100% of the tokens are distributed through staking and “stabilizer pools” to promote fairness and decentralization.
Debaseonomics doesn’t aim to be create another flexible supply token proposing a small set of features that might, in theory, make them reach their pegged value. Instead, it encompasses an infinite variety of elastic supply tokens by proposing stabilizer pools which can be programmed in unique ways to try to incentivize DEBASE holders to stabilize the token price over a number of cycles, in a process mediated by governance. These pools attempt to solve some of the biggestissues faced by such coins, including incentivizing pegging DEBASE to target during negative rebases.
Keeping this flexibility in mind, 90% of all DEBASE tokens have been assigned to be rewarded to any number of successful stabilizers proposed and voted on by governance. Serving as an incentivization mechanism for the community to develop and, in turn, stabilize DEBASE further.
To control such pools and the protocol itself, a governance token has been paired token with DEBASE. This allows the community to decide what types of stabilizers to include in addition to the rebasing parameters. DEGOV is forked by the governance model brought by Compound Finance to allow the manipulation of various parameters in a decentralized manner.
Debaseonomics is moving forward development in elastic supply tokens by incentivizing boundless possibilities in trying to stabilize DEBASE price, in the long or short term, using a governable open-ended design.
Flexible supply management
As the demand for DEBASE tokens waxes and wanes, so does the supply. Assuming initial parameters, Debaseonomics protocol’s rebase function queries a Uniswap v2 oracle to compare the price of Debase to DAI. This function cannot execute more than once every 24 hours. Note: Governance can vote on choice of the Oracle(s) as well as the rebase interval.
Assuming current parameters for DEBASE, if the price difference between DAI and DEBASE initially is more than 5% in either direction, this triggers a rebase event. Above the 5% threshold, the supply expands. Below the 5% threshold, the supply contracts. When a rebase event is triggered, DEBASE supply for all holders is adjusted smoothly in an attempt to meet the targeted value of DEBASE to its programmable DAI target price. For all accounts that own DEBASE tokens, a rebasing can either increase or decrease their balance. After a minimum of 24 hours, if DEBASE:DAI price is still not within the 5% target boundary, a rebase opportunity becomes available again.
|Acceptable currencies||USD, BTC, ETH|
|Degov Price||$68.92 USD|
|Market Cap||No Data|
|Circulating Supply||No Data|
More about Degov (DEGOV):
Debaseonomics allows for the governance to adjust the smoothing parameter (Rebase Lag) over configurable ranges that is applied in-order to dampen supply changes during a rebase. The rebase lag can be configured to behave in accordance with both the amplitude and sign of deviation between the current price and the target price thus allowing for asymmetric lag. This flexibility prevents the protocol from increasing or decreasing the supply too fast if suitable to circumstance.
For instance, say the supply needs to increase by an addition of 1000 DEBASE tokens to account for the price difference from the target price, and governance has configured a lag parameter of 20 to be applied for the supply change range of 500-1500. Here, the supply increase will dampen by a factor of 20 and to reduce the supply increase to 50 Debase only. Thus a dramatic increase in supply will not be seen.
On the other hand, if 10000 DEBASE tokens are to be added in rebase, a lower lag parameter of 5 can be used to lessen the smoothing effect on the supply change. In theory, this enforces a more dramatic supply change (and presumably, price change) relative to the previous example.
Custom pools helping to stabilize debase
Stabilizers are custom pools built and approved by governance to help reward behaviors that could help stabilize DEBASE to its target price in the long or short term. These pools will initially have no funding and will have custom triggers that will be checked against , during every rebase. If an approved pool’s conditions are met, then the policy contract, which initially contains all 90% of Debase tokens, will transfer funds to the stabilizer pool (reward amount is configured by governance during approval). The pool can then use its own unique strategies to distribute these funds.
An example of a simple stabilizer pool that is currently launched counts the number of times debase hits its target price when a rebase happens. If the count goes above a configurable threshold, then the stabilizer pool will be funded with a configurable amount of Debase tokens to be rewarded to the community. To earn this reward, the community will be staking in Debase/Dai-LP tokens, providing more long-term liquidity when the distribution pools have dried up. The neutral rebase count can also be configured to reset its count when the target price is not hit during a rebase.
Other examples of potential pools include one where users will be rewarded wrapped DEBASE tokens with specialized time-based behaviors to incentivize it’s holding or selling when DEBASE is not at its target price, or pools that encapsulate behaviors used by other rebasing token like random rebases implemented by RMPL. Finding the ideal solution to the price stability of DEBASE will be main focus of the community and governance going forward.
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