Davos Protocol has deployed on Polygon to bring its unique stable asset and disruptive yield creation practices to the DeFi landscape.
Davos Protocol, a low-risk yield-generating DeFi ecosystem, has integrated with Polygon — a layer-2 scaling solution for the Ethereum network, to bring DeFi users a revolutionary avenue to earn universal passive income (UPI). In support of the deployment on Polygon, the Polygon Labs team is extending advisory support as well as a $500k seed investment to Davos Protocol, enabling it to bring the DeFi venture’s use cases to the masses.
Davos Protocol Deployment on Polygon Runs Deeper than dApp-level
Davos Protocol utilizes MATIC, the native token for the Polygon proof-of-stake (PoS) blockchain protocol to propel its one-of-a-kind capital-efficient, over-collateralized stable asset. The protocol and its stable asset harness the power of the highly scalable Polygon PoS blockchain protocol to drive their use cases.
The DAVOS Stable Asset gets issued to users against over-collateralized MATIC positions, meaning every dollar worth of stable asset can be acquired by providing MATIC collateral worth a dollar and fifty cents. It is to be noted that the DAVOS Stable Asset maintains a peg with the US dollar.
Davos Protocol’s over-collateralization with MATIC tokens helps establish a robust, stable peg for the DAVOS Stable Asset despite fluctuating market conditions.
Davos Protocol Brings DeFi Users an Infallible Reward-Creation System
Davos Protocol rewards DAVOS stable asset holders with the yields generated from liquid staking of collateralized MATIC and the borrowing interest earned by providing DAVOS positions to users. The rewards do not dry out and remain constant despite market conditions. The aggregate sum derived from Davos Protocol’s ingenious revenue generation methods brings in value to establish a constant stream of UPI to its users.
The rewards are distributed to users indulging in the protocol’s staking pools and liquidity providers turning to DAVOS liquidity pools on various DEXs for staking purposes. Stakers on Davos Protocol’s dApp stand to earn attractive returns of up to 9% APY in DAVOS. Those interacting with DAVOS liquidity pools on DEXs earn liquidity provision tokens that compound in value. Beyond that, yield farming options remain present for those with riskier appetites.
The reward generation, apart from establishing new ways for users to gain income, also allows for the maintenance of DAVOS liquidity across DeFi ecosystems. Thus, users will help maintain liquidity for burgeoning DAVOS demands, tying that up with the protocol’s reward facilitation into a well-formulated tokenomics framework.
Also, DAVOS is a great way to store and transact value stably, being able to set itself apart from stablecoins that are raising massive concerns. DAVOS is a fully decentralized stable asset – from its functioning to its collateralization with MATIC – overcoming possibilities of the recent troubles faced by USDC and DAI. Davos Protocol looks to bring universal access to finance and income most safely by drawing on the utility ushered by the Polygon network.
About Davos Protocol
Davos Protocol is a low-risk yield-generating DeFi ecosystem revolving around its decentralized, capital-efficient DAVOS Stable Asset. By acquiring DAVOS through collateralized debt positions (CDPs), users can plug into the protocol to derive high APY rewards from various measures. The protocol offers the DeFi world the first stable asset to overcome the ‘stablecoin trilemma’, particularly from a capital efficiency standpoint.
DAVOS maintains a stable peg to USD, remains transparent in how its value is backed, and allows for considerable yield generation even during falling markets. Ergo, Davos Protocol strives to bring financial access and universal passive income (UPI) to unbanked populations while offering novel use cases to users already accustomed to DeFi.
Learn more about Davos protocol here.
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About Polygon Labs
Polygon Labs develops Ethereum scaling solutions for Polygon protocols. Polygon Labs engages with other ecosystem developers to help make available scalable, affordable, secure and sustainable blockchain infrastructure for Web3. Polygon Labs has initially developed a growing suite of protocols for developers to gain easy access to major scaling solutions, including layer 2s (zero-knowledge rollups and optimistic rollups), sidechains, hybrid chains, app-specific chains, enterprise chains, and data availability protocols. Scaling solutions that Polygon Labs initially developed have seen widespread adoption with tens of thousands of decentralized apps, unique addresses exceeding 211 million, over 1.12 million smart contracts created, and 2.36 billion total transactions processed since inception. The existing Polygon network is home for some of the biggest Web3 projects, such as Aave, Uniswap, and OpenSea, and well-known enterprises, including Robinhood, Stripe and Adobe. Polygon Labs is carbon neutral with the goal of leading Web3 in becoming carbon negative.
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