What is DELLAR
Summary
In this white paper, we will introduce the DELLAR project in detail, through the background of DELLAR, the economic model of DELLAR, and the future ecology.In general, DELLAR is an open source project, use successful project such as AMPL as a reference.Optimize the problems exposed during the operation of the AMPL project. And based on the existing problems in the DeFi project to improve and improve, to avoid the same problem from happening again.Our main purpose is to hope that DELLAR can develop into a long-term,stable,fine quality project through these improved actions.
Background
So far, there are many projects that have successfully used Rebase and controlled the price at around 1USD.But the most successful of all these projects is AMPL. Through the experience provided by AMPL, we believe that Rebase is an effective way to keep prices stable.However, from the perspective of the past few months, AMPL has also shown many shortcomings and deficiencies.
First of all, we can see from the trend of AMPL that in the early stage of operation, the trend of AMPL is moving in a good direction.This good trend can bring a large number of followers to participate. After the price increased to 4 USD, the price of AMPL dropped rapidly. Why did this happen?This is because AMPL conducted a large amount of pre-sale in the early stage. Through three public fundraising, AMPL sold a total of 16 million tokens.This behavior is undoubtedly fatal to the entire community. Pre-sale has caused a large number of tokens far below the market price to be in the hands of whales.Once it reaches a certain price, these whales will inevitably sell their tokens. This behavior will undoubtedly prevent the continued development of AMPL.
Secondly, the Rebase in the AMPL project is based on the price of AMPL itself.According to the price of AMPL higher or lower than 1USD, it is decided whether to rebase and the direction of Rebase. What results will this action lead to?The team has strong control over the trend. The AMPL team or the whale can decide whether to rebase by controlling the price. This is unfair to most AMPL holders.
In addition to these problems in the AMPL project itself, other similar projects on UNISWAP also have many problems:
First, the project team pre-mines or reserves in advance, which is a very unfair thing for all users involved in the project,Even if these tokens are used to add initial liquidity, these tokens themselves are cost-free, and other participants do not hold any tokens. In the initial stage of the project, users can only obtain tokens through purchase.The project team may sell tokens as soon as the project starts.
Second, many projects on UNISWAP are not open source, which leads to the possibility of many unknown risks. Once the project itself has technical loopholes or the bugs are not discovered in time, every participant is likely to lose his money.
Features of DELLAR
DELLAR is a digital asset decentralization protocol for smart currency.The purpose of the DELLAR protocol is to achieve price-supply equilibrium. In response to its price deviation from the CPI (Consumer Price Index) target, it achieves the balance required to reduce volatility.
Through Rebase, the price of DELLAR can be controlled at around 1USD. Rebase can automatically adjust the number of DELLAR token in all user’s wallet.
When the market price of DELLAR is higher than a certain threshold of the target price,the number of token in the wallet will also automatically increase.In other words, more tokens are given to all holder wallets in proportion.When the market price of DELLAR is lower than a certain threshold of the target price, the number of token in the holder’s wallet will decrease proportionally.
This is the most important “token index readjustment” in the DELLAR protocol. The re-adjustment of the token index is performed every 24 hours.This adjustment will not cause the dilution of the number of tokens in the user’s wallet, but will increase or decrease in the same proportion.
The purpose of Bitcoin was to build a system completely different from legal currency,It tried to change the problems of currency inflation and the recurring economic crises in the credit economic system.This is also Satoshi Nakamoto’s original vision: to build a peer-to-peer crypto currency payment system.There are only 21 million Bitcoins, and it will not increase. This causes it to become scarce. The scarcity has led to its huge potential for price increases.
Unlike Bitcoin’s absolute scarcity, DELLAR wants a different kind of scarcity.DELLAR does not have a fixed supply, This action breaks the traditional model of cryptocurrency, which is a model with an upper limit on the number of tokens issued.But it is different from the traditional legal currency inflation system. It has no upper limit on the number of issuances, and it can also solve the problem of unlimited issuance and inflation.This is what makes DELLAR unique:Based on the scarcity of ownership. DELLAR pursues the scarcity of ownership, not the scarcity of the number of token.
DELLAR’s long-term goal is to stabilize the price of DELLAR token at 1 USD.Through the Rebase protocol, the change in the number of DELLAR tokens is controlled, thereby affecting the price of DELLAR and controlling it at the price of 1 USD.
DELLAR has no presale, no pre-mining, and no reservation.Before launching on UniSwap, anyone who wants to obtain DELLAR token can only obtain it through mining. This is fair to all participants.
Problems sloved by DELLAR project
First of all, DELLAR will not conduct any pre-sales, and the project team will not make any reservations, let alone a foundation like AMPL.Because the foundation itself is a big whale.All tokens can only be produced through farming.In other words, before launching on UniSwap, DELLAR farming will be opened first, and all participants, including the project team, can only obtain DELLAR tokens through farming,This will ensure that everyone involved in the project is fair.
Second, modify the Rebase standard from one index to two indexes.Because AMPL’s Rebase uses its own price as the index standard,In order to ensure that the project team or whales will not interfere with the price trend, DELLAR’s Rebase standard is modified to be jointly determined by the DELLAR token price index and the ETH price index.The two indexes respectively determine the direction of 50%, because the ETH market is huge and it is difficult to intervene and manipulate.
The target price set by DELLAR is anchored as CPI (Consumer Price Index), and the amplitude threshold δ is 5%.In other words, when the price of DELLAR and the price of ETH have increased by more than 5% in the past 24 hours, the number of DELLAR token in all holder wallet will increase.When the price of DELLAR and the price of ETH have fallen by more than 5% in the past 24 hours, the number of DELLAR tokens in all wallets will decrease.
For example, in the past 24 hours, the price of DELLAR token has increased by 20%, and the price of ETH has decreased by 10%,accroding each weight 50%:
DELLAR index=20%*50%
ETH index=-10%*50%
Rebase index = DELLAR index + ETH index = 10%
If the Rebase index exceeds the threshold, the number of DELLAR tokens held by holder will increase. If the result of the Rebase Index is negative, then the amount of DELLAR token held by holder will be reduced accordingly.
Third, the code is open source.
DELLAR will open the project source code for everyone to browse when the project is started.Everyone can review the entire project by viewing the source code.In this way, users can see everything and details done by the project team very clearly, ensuring that the project team won’t do anything funny to the project.It can also avoid the end of the project due to technical loopholes or man-made loopholes, causing major losses to participants.
DELLAR’s value and future ecology
Ethereum created smart contracts, which opened the door to the world of protocol management.DELLAR is a cryptocurrency that implements its protocol management based on Ethereum. It takes advantage of the permissionless features and security of Ethereum.The value of Bitcoin is supported by an energy-based gambling mechanism,DeFi is backed by asset mortgages. DELLAR is mainly based on the balance mechanism of supply and demand, which has the characteristic of not requiring trust.The long-term goal of DELLAR is to stabilize the price of DELLAR token at 1USD, thereby becoming a new stable digital currency that can replace USD.
DELLAR has no team reservation, no presale, and no foundation. All people participate fairly.The future development of DELLAR will all be decided by the community, which requires a long-term consensus. Because there are no whales, DELLAR’s consensus has been half successful.In the future, the consensus of DELLAR mainly depends on people’s confidence in the development of DELLAR. And people’s confidence in DELLAR comes from DELLAR’s future development plan.
Economic model
The initial total of DELLAR tokens is only 8.8 million. Before launching on UniSwap, farming is the only way to obtain DELLAR tokens.The DELLAR token obtained by the team through farming will all be put into the pool to provide initial liquidity.
In order to allow more users to participate in DELLARfarming, DELLAR will open at least 12 farming pools at the same time, so that users can obtain DELLAR tokens in different ways. During the first 30 days of mining, 50,000 DELLAR tokens will be produced every day.After 30 days, the outcome was reduced to 10,000 DELLAR tokens per day, and the outcome was halved every year until the end of farming.In order to ensure the normal operation of DELLAR, the team will obtain 2% from the farming output.
Community governance
DELLAR has no pre-sale, no pre-farming, no reservations for the project team, no foundation of any kind, complete community management, and community management plays an important role in the governance of DELLAR.Governance is carried out by voting on proposals proposed by the DELLAR community.Every DELLAR participant is a part of the DELLAR ecosystem. Anyone is not only the holder of the DELLAR token, but also an advocate, navigator, cultivator, guardian, decider and owner of the development of DELLAR.
Risk warning
In addition to regular system risks such as general smart contracts and oracle, market uncertainty is also a risk faced by DELLAR.For the conventional system risks of smart contracts and oracle, DELLAR has a very powerful technology as support to avoid such risks from happening.It should also be noted that DELLAR’s code is open source, and community members can also review the code for risk assessment.However, the development of the market is unpredictable even for us, hence we can’t guarantee 100%.
Ending
All in all, DELLAR is an optimized combination, which is the optimized result summarized in operation through AMPL and DeFi.These optimizations will give DELLAR a certain late-mover advantage in the development process,We believe that the development of DELLAR will proceed in accordance with our expectations and DELLAR will eventually become a new type of stable encrypted digital currency.
