DFY+ Stablecoin

DFY+ Stablecoin

DFY+ is the protocol's yield-bearing asset that appreciates in value as the protocol accumulates surplus collateral from its revenue streams. While DFY maintains a stable $1 value, DFY+ provides holders with direct exposure to all surplus value generated by the protocol, appreciating in value as the collateral value grows beyond circulating supply. The protocol launches with intentional overcollateralization through its liquidity buffer, a permanent reserve that safeguards the Atomic Peg Stability System. The DFY+ pricing mechanism excludes this buffer from calculations, treating it as a permanent protocol liquidity reserve rather than distributable yield. This conservative approach ensures that DFY+ reflects only the surplus value available for distribution, not the emergency reserves. As the protocol operates, multiple revenue streams create systematic overcollateralization.

Revenue Streams

DFY+ token value is influenced by multiple revenue streams that continuously strengthen the protocol:

1

Primary Yield Generation:

The underlying yield strategies generate continuous returns on deployed capital across blue-chip DeFi protocols.

2

Arbitrage Capture:

The Atomic Peg Stability System captures arbitrage profits from every trading activity that moves the DFY price away from $1.

3

Protocol-Owned Liquidity:

AMM fees from protocol-owned liquidity positions contribute additional revenue that strengthens the overall value base.

4

Conversion Fees:

Conversion fees from DFY/DFY+ exchanges create additional protocol revenue that compounds the yield base.

DFY+ serves as the mechanism to distribute this growing surplus through mathematical precision. A smart contract continuously monitors the total collateral value against the circulating supply, calculating the real-time DFY+ price that reflects distributable overcollateralization. Unlike traditional yield-bearing tokens that rely on reward emissions or rebasing mechanisms, DFY+ appreciation provides a transparent, non-dilutive method for sharing protocol revenues.

Returns depend entirely on the protocol's ability to generate overcollateralization through its revenue mechanisms. The DFY+ price only increases or remains stable through normal protocol operations, new issuances and redemptions don't affect the price, only revenue accumulation does.

Price decreases could only occur in extreme scenarios like collateral loss from smart contract exploits or black swan events affecting the underlying yield strategies.