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Top Fi DAO - The Mission
Dollar-pegged stablecoins have become an important element of the crypto community due to their low volatility when compared to tokens like BNB, Bitcoin, and Ether. Users feel at ease transacting with stablecoins because they know they have the same purchasing power now as they do tomorrow. However, this is a misconception. The US government and the Federal Reserve control the dollar. This means that if the dollar falls in value, so will these stablecoins.
No, $TOP is not a stable cryptocurrency. Top Fi, on the other hand, seeks to be a proxy for the value held in the DAO treasury.
$TOP tokens are theoretically backed by the wealth kept in the treasury. However, the market will decide whether the token trades at a premium or discount to its fundamental worth.
Top Fi's DAO managed treasury, protocol owned liquidity (POL), mint mechanism, and staking rewards are all designed to control supply/expansion.
KEEP IT SIMPLE - Diamondhandzo shows the way. Purchase, stake, hoard, mint, stake, and hoard. Everyone who participates benefits from the procedure. Game theory is on the way; you've seen it, you don't comprehend it, but it makes sense...
Top Fi members are individuals that are capable in all realms. When you are a Top Fi holder you are simply dangerous at everything.
(G, G) is a philosophical representation of the DAO functionality - currently stakeholders can participate in the following ways:
- Buying (G)
- Minting (G)
- Staking (💰)
- Selling (🤡)
Buying, minting, and staking are all advantageous to the protocol, but selling is negative. Buying and Staking alter the price, whilst minting just supports the potential to grow the APY%. Because both acts are advantageous, the actor who moves the price is a G, as is the actor who increases the APY%. Any G who bets is receiving those money signs and transferring the market. Such that, the best outcome is the Top G. This is the point at which the meme comes to life!
It is ideal for both of us and the protocol if we both purchase and stake. It is also beneficial if one of us stakes and the other mints, because staking removes $TOP from the market and places it in the protocol, whilst minting offers liquidity and USDC for the collateral pool.
When one of us sells (🤡), the effort of the other who bets or mints is reduced. When we both sell, (🤡,🤡) the conclusion is disastrous for both of us and the protocol.
Only the protocol/DAO can mint or burn $TOP. More runway is promised for stakeholders as the protocol gathers more PCV. Because more money are accessible in the collateral pool, stakers may be certain that the present staking APY will be preserved for a longer period of time.
Top Fi controls the majority of its liquidity owing to its mint process. This has various advantages: $TOP is not need to pay out large farming incentives to attract liquidity suppliers, sometimes known as renting liquidity. Top Fi assures the market that liquidity will always be available to assist sale or purchase transactions.
Because it is the largest LP (liquidity provider), it gets the majority of the LP fees, which is another source of money for the collateral pool. All POL can be utilized to increase the intrinsic value of $TOP. For this purpose, the LP tokens are marked down to their risk-free value.
It is critical to recognize how early in development the Top Fi protocol is. Much of the conversation will revolve around the present price and the expectation of a steady value in the future. The truth is that these traits have yet to be determined. The network is now set up for the increase of Top Fi supply, which, when combined with Top Fi DAO's staking, minting, and yield mechanics, results in a significant bit of volatility.
Because the market is willing to pay a significant premium to get a portion of the existing market capitalization, $TOP might trade at a very high price. However, if market sentiment turns adverse, the price of $TOP might fall significantly.
When you buy and stake $TOP, you are capturing a portion of the supply (market cap), which will remain relatively constant. This is due to the fact that your staked $TOP balance grows in tandem with the circulating supply. The consequence is that if you acquire $TOP at a low market cap, you will capture a bigger share of the market cap.
Rebase Mechanisms
Rebase is a method that automatically boosts your staked $TOP balance. When the system creates new $TOP tokens, a major fraction of them are distributed to stakers. Because stakers only see their staked $TOP balance rather than their total $TOP balance, the protocol employs the rebase mechanism to increase the staked $TOP balance so that 1 staked $TOP is always redeemable for 1 $TOP.
Reward yield is the percentage rise in your staked $TOP balance on the next epoch. It is sometimes referred to as the rebase rate. This number can be found on the Top Fi DAO staking page.
Annual percentage yield is abbreviated as APY. It computes the real rate of return on your principal while accounting for the effect of compounding interest. In the case of Top Fi DAO, your staked $TOP represents your principal, and compound interest is added on a regular basis at each epoch (8 hours) owing to the rebase process. One fascinating aspect of APY is that your balance will grow exponentially rather than linearly over time! Assuming a daily compound interest rate of 2%, if you start with a balance of 1 $TOP on day 1, your balance will grow to around 1377 after a year.
Last modified 2mo ago