🍷Bribes and bonds

Bribes Bond Introducing

The Bribes Bond feature, a unique addition to the Dracula Finance protocol that allows users to deposit USDC in exchange for veFANG tokens at a discounted rate.

By participating in Bribes Bond, users can boost their veFANG holdings and increase their voting power for gauge weight allocation, contributing to the stability and continuous growth of the protocol.

When users deposit USDC into the Bribes Bond, they receive veFANG tokens at a 15% discount. For example, if the FANG token is valued at $1, by depositing 100 USDC into the Bribes Bond, the user would receive 115 veFANG tokens.

The maximum amount of USDC that can be deposited daily into the Bribes Bond is capped at 0.5% of the FANG token's circulating supply (calculated in $). This mechanism ensures a controlled rate of veFANG token distribution and maintains a healthy balance in the ecosystem.

The deposited USDC will be stored in the contract and distributed as bribes in the following week, taking into account the voting percentages of each pool from the previous week. This mechanism ensures that the additional USDC liquidity is allocated fairly among the gauges, benefiting the entire Dracula Finance ecosystem.

The Bribes Bond feature offers a strategic opportunity for users to increase their veFANG holdings while simultaneously benefiting the entire Dracula Fi ecosystem by providing additional liquidity and promoting stability.

Here's how Bribes Bond contributes to these aspects

On average, current ve(3,3) protocols have a bribes-to-market cap ratio of around 1:500, meaning that a ve(3,3) protocol with $10,000 in weekly bribes rewards (calculated without taking their own token in consideration) has an average market cap of $5 million. With Dracula, a market cap of $5 million allows for up to $175,000 in bribes per week (0.5% of the circulating supply per day, or $25,000 daily, which sums up to $175,000 per week). This increased amount of bribes results in APRs that will be in average 17.5 times higher, in the following week. The higher APRs create continuous buy pressure as new users are attracted to the protocol, seeking to acquire veFANG tokens to vote on gauges and benefit from the increased rewards. By offering a higher potential for bribes rewards, DraculaFi's Bribes Bond feature encourages more users to join and engage with the protocol, driving the FANG token's price upward and promoting a stable and constantly growing ecosystem.

This continuous growth and stability create a virtuous cycle that attracts even more users, further enhancing the protocol's success.