Characteristics

1

Algorithmic Valuation

DFY+ price is calculated directly by smart contracts based on protocol overcollateralization, reflecting true value appreciation, not market demand.

2

Overcollateralization Distribution

DFY+ operates as a mathematically-precise instrument that reflects protocol overcollateralization through verifiable price appreciation rather than traditional yield distribution.

3

Passive Collateral Yield Exposure

The DFY+ provides exposure to all protocol revenue streams, from professional yield strategies to arbitrage capture to fee accumulation, unified in a single appreciation mechanism.

Regulatory Compliant

This design ensures regulatory clarity by avoiding direct yield distributions or rebasing mechanisms. Instead, DFY+ functions as a clear value-capture instrument where users explicitly exchange between stable DFY and appreciating DFY+ based on transparent, on-chain calculations.

The mathematical framework provides complete auditability while maintaining the simplicity users expect from professional financial products.

Key Features:

• Price appreciation occurs only through verified revenue generation

• New issuances cannot dilute existing holder value

• Redemptions maintain proportional value distribution

• Full collateral transparency through on-chain verification

This mechanism provides institutional-grade transparency while delivering competitive yields through multiple revenue streams that compound to create sustainable, scalable returns for protocol participants.