Recently, the exponential growth of FOMO sentiment has diffused in the crypto world. DeFi successfully attracted a group of new investors to enter the market, and it also attracted the attention of traditional financial players.

However, participating in any project has opportunity costs, including but not limited to capital costs, time costs, trial and error costs... But what if a project includes all sectors?

Many investors like to describe the various sectors in DeFi as building blocks. Due to the composability of decentralized applications, the synergy effect of 1+1>2 can be obtained by putting the building blocks together.

Inspired by LEGO building blocks, DEGO tries to piece together the building blocks in the DeFi world. Often a building block may be plain and inconspicuous, but when all the building blocks are put together, there will be unlimited room for imagination.

DEGO token

As the underlying asset of the DEGO ecosystem, DEGO tokens are mainly used for user mortgage and governance. Except for pre-sales and airdrops, users can only obtain DEGO through liquidity mining.

DEGO is an ERC-20 token on Ethereum, with a total supply of 21,000,000 pieces. Among them, 16,800,000 DEGOs are distributed through liquid mining, accounting for 80% of the total. 2,00,000 DEGO will be used for pre-sale, accounting for 10% of the total. 1,102,500 DEGOs will be used to provide Uniswap liquidity, accounting for 5.25% of the total. 787,500 tokens will be reserved for DEGO DAO. The remaining 1% will be used for airdrops.

When a user makes a DEGO transfer, the system will charge 5% of the total transfer amount as a handling fee, half of the handling fee will be directly destroyed, and the other half will go directly to the reward pool to distribute dividends for the pledged users.

Various sections of DEGO

NFT section

DEGO's NFT is an exploration of GameFi-game finance. DEGO's NFT has the typical characteristics of Lego. From the picture above, we can see that Satoshi Nakamoto is portrayed as a Lego block.

The non-homogeneous token NFT is not the same as the ERC-20 tokens that people come into contact with daily. Each token is unique, so NFT will not be affected by system economic governance.

Generally, NFTs do not have the attributes of securities, which means that apart from capital gains, NFTs cannot generate any other passive income. However, the NFT forged on DEGO can be pledged in the DEGO ecosystem and obtain benefits, which makes the capital utilization rate of NFT holders significantly improved. In addition, NFT holders can also enjoy NFT casting and NFT auction profit sharing.

At the same time, the NFT on DEGO also has governance value, which means that in addition to the DEGO native token, NFT holders can also participate in the governance of the DEGO protocol.

DEGO's NFT is divided into six levels: bronze, silver, gold, platinum, diamond and krypton gold. As the token rank increases, the amount of DEGO required for casting will also increase. From the bronze NFT that can be generated with 1 DEGO to the Krypton-gold NFT that can be generated with 100 DEGOs.

The face value of each NFT is the amount of DEGO required to mint the coin, and the mining power of this NFT is also determined according to its face value. The pledge section will detail the mining mechanism of the DEGO ecosystem.

If the NFT minted by the user does not appreciate, the user can convert this NFT back to DEGO tokens at any time.

Pledge sector

It must be said that liquid mining is an indispensable catalyst for this wave of DeFi boom. However, the distribution mechanism of liquidity mining rewards is often criticized by ordinary users. Usually the reward distribution mechanism is based on the following formula:

Daily user income = daily output of liquidity reward * user pledge amount / total pledge pool

Therefore, most of the liquidity rewards are distributed to large households. Since the acquisition cost of these governance tokens is extremely low, most large households will sell them in the market regardless of cost after receiving the tokens. This mechanism is very unfriendly to ordinary DeFi farmers, and has always plagued most liquid mining projects. The algorithm introduced by DEGO adjusts liquidity mining to try to solve this problem.

DEGO converts the amount of LP (liquidity provider) tokens held by the user into POWER (similar to the hash power in Bitcoin mining), and then the amount of POWER held by the user determines the liquidity obtained The proportion of sexual rewards.

User daily income = daily output of liquidity reward * user's POWER amount / total POWER amount in the pool :

User's POWER amount = User LP token amount * Correspondence coefficient

Users with different holdings are divided into three levels by DEGO, and each level has a different corresponding coefficient.

The lowest level: the user with the most LP holdings will receive a 1x reward
Intermediate: Users with middle LP holdings will get 3x rewards
The most advanced: the user with the least amount of LP tokens will get a 5x reward

For example, if the user's LP holdings are 10 coins, which is in the middle level, the amount of POWER corresponding to this user is 10*3=30 POWER.

The above picture shows the criteria for different levels of users. Among the first 50 people, the top ten users with LP currency holdings will be classified as the lowest level, the 10 users with the least LP currency holdings will be classified as the highest level, and the remaining 30 users The user is a relay. As the number of users increases, the number of users at each level will increase proportionally until the highest and lowest levels reach 50 users each.

In order to ensure that users can continue to provide liquidity, users who pledge less than 10 days will be punished, and 10% of user rewards will be deducted and transferred to the dividend pool.

The DEGO contract has passed the security audit of Chengdu Lian'an, and liquidity mining was started on September 16. DEGO liquidity mining is divided into four staking pools, USDT pool, WETH pool, DEGO-ETH LP pool and the newly launched DEGO-UNI LP pool. As of the time of writing, the assets in the DEGO liquidity stake pool have reached US$26,059,264, and the DEGO price is US$0.756.

DAO section

Although many angels and venture capital institutions have extended an olive branch to DEGO, due to community governance considerations, DEGO has not accepted any institutional investment. Except for the pre-sale and the 1% airdrop, the remaining use rights of DEGO tokens are all handed over to DEGO DAO for governance.

In the early stage of the project, project governance will tend to be centralized. The DEGO team will elect five representatives. All project changes require 3 votes among the 5 representatives. DEGO uses an on-chain multi-signature mechanism to ensure the transparency and fairness of governance.

After the successful launch of the project, the multi-signature wallet will be returned to the community, and the multi-signature wallet holders will be elected by the community. All matters related to the project are decided by members of the DEGO DAO community.

Other sections of DEGO

Since DEGO is still in the early stage of the project, the details of other DeFi modules have not yet been finalized, but in the end, DEGO includes decentralized exchanges, auctions, lending, insurance, advertising, and the DeFi sector that will appear in the future.

Reward pool

Part of all rewards in the DEGO ecosystem will be injected into the reward pool. 5% of the rewards in the pledge pool will be used for dividends, and users can pledge DEGO or NFT in the reward pool to receive dividends.

DEGO's recommended pull mechanism

In order to expand the user base faster and help the network start coldly, DEGO has adopted a new reward mechanism for recommendation.

First of all, users who participate in the promotion need to purchase invitation codes. The price of the first 100 invitation codes is 0.1ETH, and the price will increase by 0.1ETH for every 100 afterwards. When the invited user B logs in to the wallet with the invitation code, the wallet will bind the wallet of the inviting user A. After that, 7% of the proceeds received by the invited user B through the invitation will be directly credited to the wallet of the user A. 3% of the revenue of the new user will also be credited to user A's wallet.

DEGO chain

The DEGO chain will be developed based on the Substrate framework and will eventually become a parachain in the Polkadot ecology. Thanks to the XCMP cross-chain protocol, users can use encrypted assets on other chains to interact with the DEGO ecosystem and build a cross-chain DeFi world with other ecosystems.