A yield token hunting for risk-adjusted yield across DeFi stacks.
What is dToken?
dToken is a yield token building a simple interface for users to earn the most attractive risk-adjusted yield across DeFi stacks. Governance token farmed will be converted into stablecoin and added to underlying yields.
dToken now supports USDx, USDC, USDT, and DAI on Ethereum. Collected funds are rebalanced between dForce Lending, Compound and Aave to optimize the yield.
On Binance Smart Chain, dToken supports BUSD, USDC, USDT, and DAI, with collected funds rebalanced between dForce Lending and CREAM.
More asset pools with diversified strategies will be supported in the near future, catering to the needs of users of different risk tolerance.
How to mint dToken?
By supplying supported tokens into dForce Yield Markets, users will receive corresponding dToken on a pro rata basis (i.e., deposit USDC to receive dUSDC). Each dToken represent a pro rata claim of underlying token plus yield earned.
How to redeem dToken?
Users can use dForce Yield Markets to redeem dToken and get back your deposit plus interest earned at any time (in most cases). Corresponding amount of dTokens will be burned automatically.
Please note in case of liquidity drain of a particular asset (mostly during market downturn), users may have to wait to withdraw 100% of your deposit. The dynamic interest rates of lending protocol determined by market demand and supply will encourage loan repayment and attract more investors (liquidity provider), which will help liquidity come back to the normal level.
What are the benefits of dToken?
It mines governance token and automatically converts into underlying stablecoin with much higher saving yield.
It saves at least 60% gas fees by having an internal pool for batching deposit, withdrawal and rebalancing.