What Is Dego Finance (DEGO) And How Does It Work? | KuCoin Crypto Gem Observer
There have been a few months of boom in the DeFi sector. Now, it seems NFT is taking over and becoming the focus of the crypto community’s discussions. NFT, short for Non-fungible Token, was once considered to be the next trend after the DeFi hype. When the public didn’t know much about NFT, a new DeFi+NFT project was born, which is Dego Finance (DEGO).
If you are intrest in Dego Finance (DEGO), don’t move your eyes. This post will introduce that what is Dego Finance (DEGO) and how does it work?
What is Dego Finance (DEGO) ？
The DEGO can be regarded as a DeFi+NFT aggregator. It adopts a modular design to combine various elements of the product to form a subsystem with specific functions. DEGO combine these subsystems as a universal module with other modules to create a new system with multiple functions and performance.
DEGO is equivalent to LEGO in the DeFi+NFT world. If every protocol is treated as a brick, then building the DEGO ecosystem is equivalent to building a castle with LEGO bricks. DEGO is used to create a diversified product portfolio that includes Liquidity Mining, NFT Auction, NFT Minting, NFT Trading and more.
What Is So Special About DEGO?
a) Multiple ways to mint NFT
You can obtain NFT in three ways, including genesis NFT Airdrop, NFT Auction and NFT Mint, but the service of NFT Mint is not currently available. There are six grades of the DEGO NFT: BRONZE, SILVER, GOLD, PLATINUM, DIAMOND, and KRYPTONITE. The higher the grades, the more DEGO is required for minting. Users can mint NFT with any number of DEGO, and the grade of NFT is random.
b) DEGO NFT is an exploration into GameFi
A few months earlier, DEGO launched a Satoshi Nakamoto NFT, Vitalik Buterin NFT and CZ NFT. On October 5, 2020, the first auction of DEGO NFTs opened and Satoshi Nakamoto’s NFT was auctioned. The final bid price was 129 ETH, nearly four times than its par value (minted by 10,000 DEGO with a par value of 35 ETH).
On September 29, 2020, DEGO launched three mining pools, meaning NFT holders can mine DEGO tokens via staking NFT in those pools. Each Pick Grade represents different Mining Power.
In addition, NFT holders can also participate in the governance of DEGO protocol, same as DEGO holders.
c) Bring More Fairness to Liquidity Mining
The current liquidity mining has made whales the top winners, as they can easily take away nearly all liquidity rewards and irrationally dump to secure their yields. And this is a harsh predatory game for ordinary users.
To solve this problem and promote a more sustainable ecosystem for DeFi, DEGO utilizes liquidity mining with an optimised algorithm. In DEGO, LP tokens staked by users will generate mining POWER (similar to the hashrate of Bitcoin mining), while user with biggest mining power will mine less efficiently compared to those who have small to medium power. With this Protocol, they have been able to achieve a more decentralized and sustainable ecosystem for liquidity mining.
In addition, The Dego.finance’s design language is also very interesting, as it looks like a Windows 98 desktop, with each button corresponding to a specific product.
What Is The DEGO Token?
DEGO is the governance and utility token of the DEGO ecosystem. Users holding DEGO can participate in community proposals and decisions, and receive dividends continuously. DEGO contracts adopt a completely fair distribution system without private placements or pre-minings. The total supply is 21,000,000 DEGO, with a token allocation as follows:
- Liquidity Mining (80%): 16,800,000 DEGO
- PreSale & Whitelist (10%): 2,100,000 DEGO
- Uniswap Liquidity (5.25%): 1,102,500 DEGO
- DEGO DAO (3.75%): 787,500 DEGO
- Airdrop (1%): 210,000 DEGO
In addition, they created an innovative deflation model for DEGO tokens. When a user transfers DEGO tokens, a 0.2% trading tax of the transferred amount will be deducted, and 0.1% of those fees will be directly burned. The remaining 0.1% will be transferred to the Dividend Pool.
What Is the DEGO Token Used For?
Maybe many investors know that NFT has always been used in the collectibles market before. However, DEGO brings more value to NFT. NFT in the DEGO ecosystem can not only be auctioned and mined, but also used to participate in the governance of DEGO by holding NFT.
The popularity of DEGO project has set off a storm across crypto market and the movement it represents is defining the NFT asset class. DEGO has a long roadmap and quite a few products to launch, would they be just brilliant as its existing bricks? This anonymous team has executed all things lighting fast and now the whole market awaits.
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