JusDeFi: Amplying DeFi Governance and Burn Functions
DeFi has produced a lot of interesting projects that fine tune tokenomics to create the next sustainable and unique ecosystem to try and repeat the success of previous projects like YFI and Core. DeFi, because of its decentralized nature, has also created its own fair share of scams and rug pulls. One of the biggest challenges is spotting them early before they are able to steal everyone’s contributions. Solving this problem has been explored and will be experimented with in a new project called JusDeFi which adds yield farming, deflationary code, a buy back program, and also a relief program for those who were affected by the recent AmplyFi scam.
JusDeFi (JDFI) is an ERC20 Token which is a relaunch of AmplyFi. The code provided by the developers of AmplyFi was used as a source of inspiration and was analyzed and finally completely rewitten to create a new and improved ecosystem.The team, which consists of 5 victims of the original AmplyFi scam (2 solidity experts, 2 marketing professionals and a front end designer), decided to bring the original project to life with improvements. Holders can stake JDFI for staking rewards (or stake JDFI-LP Tokens for even bigger rewards) and even re-invest their dividend rewards with a push of a button to continue to compound.
The staking fee schedule is community governed and will change on a weekly basis via weekly bids made by the community. A “Sigmoid Curve” weights all bids to ensure even the smallest bids have an impact. This allows for a unique ecosystem which will see different reward amounts distributed at different times. The fee can be as little as 0% or as high as 20%. The community will have the opportunity to influence not only the reward system itself but also influence the community to entice more holders to stake the coin or they can try and prevent more staking by increasing the fee. While community members can influence the fee, its not completely bound to them, as the “Sigmoid Curve" can make it extremely difficult to get to either 0% or 20% although even a small bid can be of large influence and push the fee out of range. The original code attached to this system wasn’t effective and was thrown out and re-written. Voting periods will last 1 week and will begin on 11/1/20.
When you unstake JDFI, the holder of the tokens being unstaked are victim of a transaction burn. The token is burned to affect the ecosystem experimentally in 3 ways:
- Half of all unstaking fees will be burned
- All Eth from fee bidding will be used to buy-back and burn tokens at market price
- The original liquidity that is provided will be dynamically burned as new liquidity is added by providers
The burn adds in an increasingly influential factor of decreasing supply which in theory will increase demand. While it is being generated, this scarcity isn’t artificial as it is generated through immutable code via the actions of the community. The community directly influences the supply which adds in another completely unique layer to the ecosystem.
JDFI has a total supply of 34,000 tokens. The distribution of tokens is as follows:
- 10,020 JDFI for the Justice Fund
- 10,000 for the initial liquidity pool
- 10,000 sent to depositors
- 2,000 for the development fund
- 2,000 for pool seed rewards
Its important to understand how and why 10,000 JDFI are being sent to the Justice Fund. The Justice fund is being utilized to help aid those who were scammed by the original AmplyFi rug pull. Being victims of the rug pull themselves, the team behind JusDeFi thought it would be essential to reward those victims and bring them to the new and improved ecosystem the victims had expected when they contributed to the original scam. This is a valiant and noble effort on the part of the team and they are providing a direct solution to victims of a crime. Many projects in the space would benefit from taking this approach because it allows real people to participate in a new legitimate project all while providing a sense of relief to them. These tokens will be pre-staked for holders and will generate rewards from day one. These tokens will be locked into the protocol as well.
The airdrop is underway. You can visit the JusDeFi staking portal starting on 11/9/20 to convert your tokens. Your AmplyFi tokens will be converted for free to JDFI tokens. Keep in mind that the tokens rewarded are locked into the contract. However, they can be unstacked after paying a fee. The reasoning for this is to prevent a mass dumping by AmplyFi holders on day 1. Holders of these locked tokens will be able to start earning staking rewards on day 1 and may pay 0.25 ETH to unlock their rewarded tokens immediately.
To coincide with the projects launch, a Liquidity Generating Event will take place on 11/6/20 20:00 UTC and it will last for 72 hours. All tokens allocated for the presale which are not purchased will be burned. All ETH generated through this LGE will be locked into the initial liquidity pool with a price of 0.25 ETH/JDFI.
The audit of the JusDeFi smart contracts have concluded and were completed by Callisto Network. The report will be released and shared before the LGE to ensure everyone’s confidence and safety in the integrity of the project.
JusDeFi looks to experiment with many moving parts which in combination have not been explored thoroughly. Creating the next truly innovative Decentralized Finance ecosystem is a tough challenge, one that JDFI looks to capitalize on. Unique tokenomics combined with the helping hand of the Justice Fund will attract users affected and unaffected by AmplyFi. Cryptocurreny can be a cutthroat industry and this is the type of initiative that helps bring people together to discover how crypto and decentralization in general can shape the world, and JusDeFi is no exception here.
- Twitter: https://twitter.com/JusDeFi
- Telegram: https://t.me/JusDeFiTelegram
- Discord: https://discord.gg/yqVxckg
- Website: https://www.jusde.fi/
(I write articles, reviews, and Litepapers for legitimate, interesting, up and coming cryptocurrency projects. Feel free to PM me to review your project. Thank you!)
Disclaimer: This is not financial advice. The sole purpose of this post/article is to provide and create and informative and educated discussion regarding the project in question. Invest at your own risk.