DuckDAO is a digital asset incubator whose primary aim is to grow promising projects into their full stature.
Decentralized finance has created various opportunities that were up until now, unavailable to crypto investors. DeFi platforms are mostly built on the Ethereum blockchain, and quite a number of resourceful companies have utilized this technology amazingly. What makes DeFi so unique is the development of dApps that provide various seamless transactional methods for crypto enthusiasts.
Investors are constantly in search of sustainable projects where they can earn long-term. One way they take advantage of the remarkable DeFi features to achieve their profit-making goals is through Yield Farming, which is a common strategy that allows investors to generate rewards through their crypto holdings.
Although there are several risks associated with many yield platforms, investors have learned to manage them. Also, certain platforms have been able to learn from past failures to effectively manage yield farming. One of such platforms that stood out and evolved through the experiences is DuckDAO.
What Is Duckdao?
DuckDAO is a digital asset incubator whose primary aim is to grow promising projects into their full stature. It is a decentralized and democratized platform that offers various earning strategies to crypto investors. Furthermore, it opens up its users to several investment opportunities regardless of their invested capital.
How Duckdao Operates
DuckDAO creates a context that supports a healthy and sustainable relationship with its users and a fair opportunity for them. This is in contrast to other platforms where large Venture Capitalists try to make easy profit from retail investors. DuckDAO supports the mutual growth of all projects and investors to create lasting success for all.
As a result, the participation of DuckDAO in projects is tiered.
Tier 1 (Incubation Level)
This level is where the platform helps different projects from scratch till they get enlisted with an exchange. Such projects would benefit from the team’s advice, marketing inputs, and other services.
Tier 2 (Strategic Contribution Level):
In this Tier, DuckDAO enables projects to leverage on its influence on social media platforms such as Twitter.
Tier 3 (General Contribution Level):
At this stage, the platform has no involvement in the projects. They only manage OTC sales and community requests.
DuckDAO has made great impacts in the fundraising space through its community-backed activities.
What is Decentralizing Opportunity?
When DuckDAO partners with projects, such projects would allocate tokens to DuckDAO users. These tokens are then shared to users who have joined the platform’s token-permissioned telegram communities.
The DuckDAO token (DuckDaoDime or DDIM) gives users access to the available community tiers. This, in turn, provides them with many benefits. Access to each membership tier can only be granted to Ducks who have at least a fixed minimum number of DDIM tokens in their wallet.
To gain access to the Duck membership groups, the requirements are:
- The Duck Fightclub: 10 DDIM
- Beach Club: 200 DDIM
- Gentlemen’s club (VIP): 2,500 DDIM
- Diamond Club (VIP): 10,000 DDIM
- Duck Allstars Club: Top 10 DDIM holders.
Ducks (members of the DuckDAO) can access DDIM either through community events or by purchase on Uniswap. Users are automatically removed from a group once their DDIM balance falls below the required amount.
Furthermore, a larger percentage of the allocation received from projects are distributed to customers in the highest tier (Duck Allstars Club). Regardless, DuckDAO ensures a fair distribution of the allocation.
What is Duck Liquidity Pool?
Duck Liquidity Pool, the brainchild of DuckDAO, refers to the name of the DuckDAO DeFi market maker. Users can deposit funds to DUCK-based liquidity pools through Uniswap and earn tokens via deployment through smart contracts. Consequently, the LP tokens received after deposits are made can be staked on the DUCK farm.
Stacking on DUCK Farm allows users to earn DUCK tokens and market maker rewards. When users contribute to the Duck Liquidity Pool, they are rewarded with the DUCK tokens. There are several ways through which duck farmers can earn these tokens:
- Contributing to DUCK liquidity pool on Uniswap
- NFT rewards
- distribution of market-maker rewards
- project token airdrops.
Since the Duck Liquidity Pool Token (DUCK) is earned as a distribution of market-making profits, Duck Farmers (those who contributed to the liquidity pool) share out of the profits paid out in stable coins. They will receive a share of 50% of the earnings from the Duck DAO market maker business. DUCKs are used to fund the DuckDAO market makers at the initial stage and also to launch its business operations.
One-side-burn: What Does it Mean?
This system is based on a deflationary economy to secure the DUCK token from losing its value. The one-side-burn means that yield farmers will lose one side of their liquidity and will never get it back. Eventually, the returns they will earn for staking Liquidity pool tokens would be higher.
Part of the reward system for Farmers who participate in staking is the ability to earn multiple Duck tokens at peak weeks. A Peak week is the time of the year that yield farmers earn multiple Duck token rewards. There are three peak weeks in a year for each farming pool based on the reward model.
The function of the one-side-burn is to prevent the DUCK token from inflation, which occurs when high returns are paid to farmers. When users leave the Duck Farm, the provided liquidity gets burned, which lowers the supply of the DUCK token. All it takes for the whole DuckDAO token system to be deflationary is simply for one side to get burned.
Therefore, to prevent the deflation of the DuckDAO token system, the platform came up with the ONE SIDE liquidity burn.
The economy of the tokens on DuckDAO is managed in a way to create fair incentives for its community members. Exactly 80,000 tokens are used as rewards for community members for:
- active involvement on social media,
- participating in deals,
- and interactions with projects during AMAs.
Around 40,000 tokens go to the five Duck team members when a deal lists in profit. They will also get rewarded when a deal has been successfully closed. After these, they won’t be awarded any more than the allotted quota and are subsequently required to purchase on the market.
The reserved 500,000 tokens are at the mercy of the Allstars team as the tokens are locked. For them to be unlocked, more than half of the top ten individuals have to vote in favour. The move to unlock tokens is only allowed in any of these situations:
- liquidity is needed for an exchange
- The token price needs to be adjusted
- liquidity is needed to reward members
Depending on demand, the Duck team may propose to use part of the reserved 500,000 tokens as part of a sale or airdrop.
Out of a total supply of 100,000,000 DUCK, about 22% pre-mined tokens are for sale to fund the DuckDAO liquidity pool, 70% is reserved and used as reward for liquidity providers through yield farming, 7% of the operational tokens are locked, while 1% is reserved for the core team.
Many crypto investors are willing to stake on promising DeFi projects due to the explosive growth the space has seen. In view of this, DuckDAO is one of the platforms that has taken liquidity mining to its peak by providing opportunities for both large VCs and retail investors alike.
Furthermore, the DuckDAO liquidity pool’s model, which utilizes the one-side-burn mechanism, seems to offer a more unique approach to liquidity mining.