Router Protocol Announces Partnership with Dafi

Router — Dafi Partnership

We are excited to announce that we have entered into a partnership with Dafi, a DeFi reward protocol for creating synthetic tokens, to enable DAFI’s token uses for the Router Network.

Created in the wake of the catastrophic 2018 crypto market crash, DAFI set out to fix the broken incentive model that plagued most of the industry. DAFI protocol creates a relationship between network rewards and network adoption by releasing dTokens that are tied to network consumption. Dafi’s mission is to introduce a completely new inflation model, so every decentralized economy can incentivize in proportion to their own adoption metrics.

By distributing synthetics tied to network-adoption, users are rewarded when the network consumption rises. The protocol firmly believes that this has the potential to spur long-term adoption and create better inflation models.

Our partnership with DAFI will enable us to explore the usage of synthetic dROUTE tokens for incentivizing user participation. By establishing a tiered rewards structure, we believe we will be able to grow network adoption.

Router Protocol currently uses two models for incentivizing user participation — SpaceFarm and GalaxyFarm. Spacefarm is an incentive structure that allows users to interact with liquidity stake on pools while earning an income of Router tokens on the Ethereum network, while Galaxyfarm is a rewards model that enables users to add liquidity mining for various decentralized pools inside Dyfn which is a Polygon (formerly Matic).

Collaborating with DAFI will allow us to explore the possibility of using synthetics to incentivize and distribute the rewards. We believe this has the potential to ensure that the price and token metrics of the underlying ROUTE token remain unaffected by any current or future incentives.

As of now, around 17.2% of ROUTE tokens are given to users that aggregate liquidity on decentralized pools in the form of incentive reward pools. While we believe rewarding those that utilize the network is the right way to go, we are aware that this could potentially devalue ROUTE and reduce the overall security of the network.

DAFI will provide Router with a synthetic dROUTE token that will be pegged to the demand of the network. The supply of the token will expand and reduce according to network adoption. What this essentially means is that in a low-demand market, the scarcity of synthetic tokens increases to protect the network. When the demand is high the synthetics will expand in quantity and provide users with more rewards.

Zain Rana, the founder of DAFI, has been interested in Router for a while and that the collaboration represents a significant step in broadening the use of its core products.

“Router Protocol is interesting as a cross-chain liquidity aggregator with a seamless asset-level data transfer. Their innovations with Spacefarm and Galaxyfarm hold huge promise and we’re glad they’ve decided to explore the possibility of using synthetics for the reward models. We believe this is just a milestone in the exciting journey together,” Zain said.

“One of the best ways to quickstart network adoption is by incentivizing user participation, which often comes at the cost of token supply/price volatility,” explained Ramani Ramchandran, the CEO of Router Protocol. “DAFI’s idea of synthetics could drastically change that and we’re delighted to see if we could fit it into our platform. DAFI’s synthetic dToken could help increase Router Protocol network demand and incentivize user participation through synthetic rewards that do not affect the underlying token supply or price volatility. If successful, this could transform our network model and we’re thrilled at the possibility.”

About DAFI protocol

DAFI uses synthetics pegged to different decentralized networks. Every blockchain, application, and cryptocurrency can create a flavor of a dToken to reward their early users, while still enhancing scarcity when demand is low.

DAFI can reward a network even when demand declines, by issuing synthetics that will reward user’s later — instead of earlier. Join us on Telegram for updates.

Website: https://www.dafiprotocol.io/

Medium: https://dafiprotocol.medium.com/

Twitter: https://twitter.com/dafiprotocol

Telegram: https://t.me/dafiprotocol

Litepaper: http://www.dafiprotocol.io/litepaper

About Router Protocol

Router Protocol is building a suite of cross-chain liquidity infra primitives that aims to seamlessly provide bridging infrastructure between current and emerging Layer 1 and Layer 2 blockchain solutions.

Website: http://routerprotocol.com/

Telegram: https://t.me/routerprotocol

Telegram announcements: https://t.me/router_ann

Twitter: https://twitter.com/routerprotocol

Linkedin: https://www.linkedin.com/company/router-protocol

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