DIP057 - Introducing the dForce X Plan

Summary

The dForce X Plan proposes to create multiple primitives, derived from dForce’s current and future primitive (such as lending, stablecoin, trade, bridge, RWA, etc).

While each primitive will have its own token, the DF token will persist as dForce's governance token, capturing value from ecosystem projects through staking and facilitating participation in ecosystem governance.

Background

Founded in 2019, dForce has evolved from a stablecoin protocol into a comprehensive DeFi matrix, encompassing a variety of protocols including a native stablecoin (USX), lending, bridge, and trade aggregators. All protocols under the umbrella of dForce are governed and incentivized by DF token currently.

However, this approach has resulted in coordination and alignment dilemmas among distinct protocol communities. It is challenging to align the focus of communities around several different primitives (e.g., stablecoins, lending, DEX), despite the shared liquidity and obvious capital synergy.

Today, DeFi projects are pursuing various strategies to address the friction between the aggregation and integration of features and liquidity, and the alignment of interests among different verticals.

Motivation

The dForce X Plan aims to 1) enhance integrated efficiency; and 2) realign interests among key stakeholders across various verticals.

Implementation

1. Spin off and build multiple primitives from dForce’s existing and future primitives (lending, stablecoin, trade, bridge, RWA, etc).
2. Assign each primitive its own token and tokenomics.
3. Achieve synergies through shared liquidity and coordinated governance across dForce and its ecosystem projects.
4. Interlock tokenomics between dForce and associated projects, leveraging shared liquidity pools, unified treasury management, and aligned funding strategies.

Specification

1. Spin off the lending protocol from dForce with a new brand, new domain, and a new token for governance and incentivization. The new lending protocol will inherit all of dForce’s lending features and smart contracts.
2. All liquidity mining rewards on the lending side will be funded by the new governance token, and DF token will step down from incentivizing users for lending activities.
3. DF token will remain as the governance token of dForce, capturing value from ecosystem projects through staking, and participating in ecosystem governance.