Crypto donations and stable coin staking on stakes.social

Dev Protocol is different and sustainable than other donation platforms because of its staking system. Staking works on locking your $DEV tokens and it gives out an APY dependent on number of staked tokens and projects onboarded. Staking is sustainable because the Patrons/Fans who want to support the creators doesn’t spend money in a direct way.

With the Perks and sTokens mechanism coming to Dev Protocol the enviroment will even be more challenging for creators. Also it means more opportunities for the protocol. Normally traditional funding isn’t exciting. But Gitcoin grow much with its traditional funding mechanism. Because it worked as a grant. And some users of Gitcoin rewarded their funders with tokens and stuff. So the platform gained popularity and people keep donating to projects and expecting a return. With sTokens and Perks coming to Dev Protocol, can we expect a section for traditional funding?

Now for example, lets say i have staked for a musician on u-Zomia with $DEV tokens. The artist offered a special music NFT perk for 1K dev staking for 1 month. It’s great utility for $DEV tokens. But how would it be if there would be a section of direct buying opportunity for that perk. That should cost around %50 more expensive than it could got with staking + its rewards. This would give opportunity for people to use Dev ecosystem without holding $DEV tokens and add more value to $DEV tokens. Since recieving same perk with tokens would cost less. There could be a buyback mechanism for tokens with that extra cost which would increase the value directly.

Also if there could be a opportunity for stable coin staking for creators to earn those perks. I know some protocols give %19 stable coin yields annually.

Now for example,

1 $DEV = 10 USDC

Perk A = 100 DEV staking for 1 month

So in order to achieve Perk A, i need 1000$ worth of $Dev tokens staked for 1 month.

So now lets assume APY of stakers is %34 and creators is %36.

2,83 $DEV tokens will be issued for the staker and and 3 $DEV tokens will be issued for the creators. Total of 5.83 $DEV tokens will be issued from staking for creator and the staker.

5.83 DEV = 58.3$
So for total of 1000$ worth of DEV tokens, the protocol will issue 58.3$ worth of DEV tokens.

Now lets assume Dev Protocol is offering %5 APY for stable coin staking for stakers and %6 APY.

For 1000$ staking staker will revieve 4.16$ monthly and the creator will revieve 5$.

Total of 9.16$ will be issued from Protocol for 1000$ staking.

So in order to reach the value of $DEV tokens issued from staking with the current APY’s. %636 worth more stables should be staked.

So now lets assume 10k$ stable is staked on protocol. Total issued value will be, 110$ monthly.

110$ - 58.3$ = 51.7$

So this extra 51.7$ can be added to the Protocol’s treasury.

I made up these numbers. But in these calculations. If someone want to recieve Perks but doesn’t want to stake $DEV tokens, they can stake stables and earn decent APY. But they should stake x10 value of $DEV tokens and the extra rewards will move to $DEV treasury to enchance the protocol and the DAO.

The numbers as i said are just made up by me. But with the correct equilibrium there will be a ideal value for this process. Which i believe will add more value to the protocol and to the token since the token will always worth more than its market value if people prefer to chose stables.

I would love to what you guys think. Please share your ideas :slightly_smiling_face:.

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Question I have on this if I have understood it correctly

For 1000$ staking staker will revieve 4.16$ monthly and the creator will revieve 5$.

Where does that reward come from for the stable coins, normally with the platforms you lend your coins to them and they go use them to get a higher return by lending them out again or using them.

If the reward is paid in the form of stable coins then Dev will need to ensure it gets a return on these staked stables Greater than the return to the user, if it’s paid in Dev I would worry about the sell pressure that could bring from people without any skin in the game.

Increasing the TVL into the protocol and giving users additional options is a good thing as is adding to the Dao controlled treasury but a few more things needs to be considered on how this would work in practice

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Really nice question!

To be honest i dont directly know the answer because Dev Protocol currently doesnt have a mechanism directly for stable coin APY.

What came in my mind was to use some third party applications like anchor protocol which provide %19 APY on stables etc…

Or maybe in future, there can be a stable coin APY with a collobration between JPYC team. Their stable coin maybe can provide a %APY, that would make a working system