1/ Project Overview
Defibox (https://defibox.io) is a one-stop DeFi application platform on EOS. We can make a simple analogy, Defibox=Uniswap+MakerDAO+AAVE. It is initiated and managed by the Defibox Foundation, and get funding from Newdex. The project was launched on July 21, 2020, which is committed to becoming the most popular DeFi application platform among users. Currently, Defibox has launched three protocols, namely Swap protocol, USN stable coin protocol (formerly Danchor project) and decentralized lending protocol.
As the initiator and manager, the Defibox Foundation is responsible for goal setting, strategic planning and resource coordination, and is responsible for organizing the team to promote the sustainable development of the project.
As a developer and operator, the Defibox team is managed by the Defibox Foundation to complete the goals set by the Foundation.
The Defibox Foundation has established the governance community "BOX DAO", adheres to the basic principle of same right with same token, and promotes project development through proposal and voting governance. The ultimate goal is to dismiss the Foundation and achieve more thorough decentralized autonomy.
2/ DeFi Protocol
Every DeFi protocol of Defibox is open, and any individual can visit and use it.
Swap is decentralized token swap and AMM automatic market-making protocol. The protocol provides swap prices in real time through the constant product algorithm, and users can also create swap markets and become market makers. Transaction fees are distributed to the market makers based on the proportion of liquidity.
2.USN Stable Coin
The USN stable coin (formerly Danchor protocol) is a decentralized staking stable coin. It was launched on January 17, 2020 and has become Defibox sub-project. The stable coin USN (the target is pegged to the U.S. dollar) is generated by staking EOS, which can meet various financial needs such as leveraged trading and obtaining floating capital. It adopts the mechanism of over-collateralization and liquidation, and provide value support for USN with sufficient collaterals.
Defibox Lending Protocol has been officially launched on March 27, 2021. Users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers with collaterals are able to borrow tokens and need to pay interest.
3/ Defibox Development Fund
The Defibox Foundation will establish the "Defibox Development Fund". The operation method will learn and refer to the Ethereum Foundation and Web3.0 Foundation, providing financial support to community developers. The development of "satellite protocol" will be based on the three basic protocols of Defibox, promoting the comprehensive development of the Defibox ecosystem.
The "satellite" protocol refers to the surrounding protocols developed based on the three basic protocols of Defibox to solve the existing problems of Defibox and empower the three basic protocols of Defibox. It encourages the development of the "satellite" protocol and aims to fully integrate the openness and composability of the three basic protocols to innovate the protocol and enrich the diversity of Defibox ecology.
1.Swap satellite protocol
A protocol that aims to promote the development of the Swap protocol, such as solving the problem of impermanent loss caused by the existing Swap market making.
2. USN stablecoin satellite protocol
A protocol that aims to promote the development of USN stablecoin, further pegging to USN exchange rate and expanding the application scenarios of USN stablecoin.
3. Decentralized lending satellite protocol
A protocol that aims to promote the development of decentralized lending and to increase the scale of deposits and loans.
4. Other empowering protocols
In addition to the three major protocols, there are other protocols that can empower the Defibox project, such as traditional financial asset trading, derivative trading, oracle development, algorithmic stablecoin and cross-chain asset protocol development.
4/ Defibox Will Explore Multiple Chains
The Defibox Foundation will explore multiple chains and "connect" the three basic protocols of Defibox to multiple chains to achieve "multi-chain operation". After evaluating and determining the feasibility of multi-chain solution, the three basic protocols of Defibox are "connected" to multiple chains. According to the actual situation, there may be the possibility of different protocols "connecting" to the most suitable smart chain. At present, the Defibox project has been running stably on the EOS chain, and the Foundation hopes to create miracle through multi-chain exploration and attract more users.
5/ Token Issuance
Defibox issued BOX on EOS chain with a total volume of 5 million, which will be released linearly from 0 by completely using DeFi protocol mining method. There is no private sale, no reservation and no pre-mining.
Token issuance rules
The BOX token issuance plan: 70% of the BOX is used for DeFi protocol mining, 15% of the BOX is distributed to the Foundation, 7.5% of the BOX is distributed to the team as the incentive, and 7. 5% BOX is the reward of BSS period saving system. The BOX distributed to the Foundation is released linearly with mining, and will be in circulation after released, which will be used for product development, operation and promotion, risk reserve, etc.; the BOX distributed to the team is released linearly with mining, and will be unlocked in 5 times after released, unlocking 1.5% of the total BOX each time. The first unlocking date is November 11, 2020, unlocking one time every six months.
Revenue distribution principle
BOX token adheres to the basic principle of same right with same token. Each BOX token enjoys the same rights and interests. Therefore, revenues generated by the Defibox protocol will be fairly distributed according to the BOX amount. The Defibox Foundation will participate in staking reward and voting governance with all BOX token holders, and no longer enjoy the priority right to distribute Defibox protocol revenue. The distribution method of all revenues generated by the Defibox protocol will be decided by BOX token holders through proposals and voting.
Revenue distribution method
The current distribution method of Defibox protocol revenue is as follows:
The distribution method of Swap 0.1% transaction volume, USN interest, USN liquidation penalty, lending interest income and lending liquidation penalty is that 75% is distributed to the liquidity provider of EOS+BOX liquidity pool as reward, 15% is risk reserve and 10% is rewarded to Newdex.
Token issuance plan
The token issuance plan after BOX supply reaches 1 million is as follows:
2.4 million BOX is distributed to swap liquidity mining, and the release of token is executed simultaneously with liquidity mining.
0.024 BOX is released every second, and the release ends in about 3 years. The specific distribution rules are as follows:
- 0.0168 BOX is released to liquidity mining pool for liquidity mining
- 0.0036 BOX is released to the Foundation account for product development, operation and promotion, security audit, etc.
- 0.0018 BOX is released to the team account asteam incentive
- 0.0018 BOX is released to BSS period saving system account as the reward of BSS period saving system
- Becoming liquidity providerto provide liquidity, you canget BOX incentive of liquidity mining pool
- The BOX amount obtained by liquidityminingper second= the proportion of the liquidity you provide converted into EOS × 0.0168
2.USN Stable Coin
Distribute 600,000 BOX for USN application mining, and token release will be synchronized with USN application mining.
A maximum of 0.006 BOX is released per second, and the shortest release end time is about 3 years. The specific distribution rules are as follows:
- 0.0042 BOX is released to USN application mining pool for USN application mining
- 0.0009 BOX is released to the Foundation account for product development, operation and promotion, security audit, etc.
- 0.00045 BOX is released to the team account as team incentive
- 0.00045 BOX is released to BSS period saving system account as the reward of BSS period saving system
- The smart contract releases 0.002 BOX per second for USN application mining and accumulates to the corresponding USN application mining pool
- The BOX release amount per second from a certain USN application mining pool = the basic release amount 0.002 BOX × 70% × the USN application mining weight
600,000 BOX is distributed to decentralized lending protocol mining, and the 600,000 BOX is locked before the mining starts.
400,000 BOX is distributed to other forms of mining of Defibox. The 400,000 BOX is locked before the mining starts. The Defibox Foundation has the right to adjust the mining distribution rules according to actual needs.
6/ Token Value
BOX is a governance DeFi token, and adheres to the basic principle of same right with same token. Its value is mainly captured through governance: BOX holders can vote to determine important parameters of DeFi protocol such as the transaction fee rate of Swap protocol, USN stable coin interest, USN stable coin liquidation penalty, etc.; they also can vote to determine various proposals such as revenue distribution method of DeFi protocol and logic adjustment of DeFi protocol. Because BOX holders have the right to decide important parameters of DeFi protocol, they will become decision-making participants of Defibox, and BOX holders will benefit from the governance.
7/ Risk Warning
The Defibox Foundation attaches great importance to the safety of funds. The smart contract has been audited by security company, but still cannot guarantee the 100% security. Please participate in carefully at your own risk. The Defibox Foundation may stop operations in the future due to policy reasons. Therefore, the Foundation has established BOX DAO. The ultimate goal is to dismiss the Foundation and achieve complete community autonomy.
This document is only used to convey project information and does not constitute any suggestions for investment and participation in the Defibox project. Once you participate in the project, it means that you understand and accept the risks of the project, and are willing to bear all the corresponding consequences for this. The Defibox Foundation clearly stated that it will not bear any direct or indirect losses caused by participating in the Defibox project.