What Is Dogs Kombat (DK)?
Bonding is an active, short-term strategy, unlike staking. The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Dogs Kombat Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking. It’s more involved, but the rewards can be worth while if you stay up to date with the protocol’s changes and the rebase periods.
To recap, bonding allows Dogs Kombat to accumulate its own liquidity. This is what allows to function like it does. More POL ensures there is always locked exit liquidity in your trading pools to facilitate market operations and protect token holders. Since becomes its own market, on top of additional certainty for FHM investors, the protocol accrues more and more revenue from LP rewards bolstering your treasury, allowing to continue the virtuous cycle of wealth creation for and your stakers/bonders.
Dogs Kombat Storage Key Points
|Coin Name||Dogs Kombat|
|Circulating Supply||3.50B DK|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
What is (4,4) Bonding
Users can swap selected tokens (DAI/wFTM/USDT.m/USDC.m) or LP pairs (FHM-DAI/FHM-USDC.m LPs) directly with the Dogs Kombat protocol in exchange for discounted sFHM tokens. This allows the Protocol to build a larger treasury which help grow the project and allow to offer attractive APYs and increase our product offerings (just like did with USDB). In return, Bonders will receive discounted sFHM tokens which are ALREADY STAKED. So you have an opportunity to get both a DISCOUNTED token AND STAKING REWARDS. Pretty nice, right?
Why isn’t the discount better?
However, deciding whether bonding or market buy and stake is better for the protocol is ultimately based on the analysis that your strategy team does constantly. Dogs Kombat The benefit to the investor will vary depending on those market conditions so you should always evaluate all the options in front of you each time you chose to invest. Bond reward are vested over 5 days, and can only be claimed after those 5 days. Don’t forget, the tokens are already staked so you don’t have to claim and stake like other bonds.
Dogs Kombat means that your bond rewards will compound as they are vested, meaning that you won’t need to stake them after you claim them. The Bond Discount which is set by the team to control bonding incentives depending on which tokens are most useful for the treasury.
With the introduction of USDB 1.5, Dogs Kombat made USDB tradable and available to anyone interested. In order to make sure the value of $1 (the peg) was maintained and incentivized, they created a few different bonds to help. Right now, the easiest way to understand. If 1 USDB is worth MORE than $1, you can bond DAI into USDB (always for 1 USDB = 1 DAI) instantly, which you can then swap for any tokens on a DEX – making a profit.
Dogs Kombat If 1 USDB is worth LESS than $1, you can buy USDB on a DEX and then bond that USDB into FHM instantly, which you can then stake or sell. If you are looking for information related to the USDB Bonds they have implemented – you can learn more about how they work.
The FHM > USDB Minter
Dogs Kombat have also added an exciting new aspect to your protocol in a deflationary component directly related to circulating supply. Sometimes users may want to exit their holding of FHM without slippage or price impact and they have now made a bond that allows the user to burn their FHM directly into USDB. Sometimes this bond will be sold out. As the value of it has to be balanced with the health of the protocol. If you are interested in using it and the bond is sold out, please check back as the limits are evaluated frequently.
How are wrapped tokens and staked tokens different?
Dogs Kombat increase in amount over time, while wsFHM increases in price. When you unwrap your wsFHM tokens, you get back your original sFHM plus any other sFHM gained due to rebasing! The amount of wrapped tokens you have will NOT increase. But you will continue to earn rebases due to the index. These tokens are controlled by their own indexes (explained below) and have separate contracts but otherwise act in the same way.
Dogs Kombat Wrapped tokens have fixed supplies so they will allow more opportunities as they expand into more projects. Some jurisdictions also treat wrapped tokens taxably different than simply staked tokens. Please consult a tax professional if you have questions.