Value of dToken & Its potentials

Why will the value of dToken keep growing?

After the current user deposits tokens into the Diamond Vault, the diamond machine gun will choose a principal protection strategy to invest and automatically trade the target income into the corresponding Token. Therefore the number of dTokens is still the same but the dTokens in the pool can be exchanged for more Tokens. which means the value of dToken increases.

What else can dToken be used for?

Because the value of dToken is always greater than Token, you can add leverage for lending like collateralizing dToken in a lending platform that supports dToken, and lend Token at a 1:1 loan rate.

For example: Alice deposits 1,000 EOS in the Diamond Vault and obtains 990 dEOS. Alice collateralizs the 990 dEOS in the dEOS lending platform and borrows 990 EOS. She then mints 980 dEOS with the 990 EOS borrowed. She goes back to the lending platform to borrow EOS. She repeats the operations and is able to access to thousands of EOS for investment with only 1000 EOS. This is equivalent to using the power of the market to integrate the EOS on the market into the Diamond Vault, thereby increasing the capital scale of the Diamond Vault.

Last updated