WAGYU Token
The native token of Tenderize, WAGYU, is a utility and governance token. $WAGYU is backed by the protocol’s treasury, which captures revenue from various sources within the protocol.
WAGYU is redeemable for a proportional share of the treasury through inverse bonding. This redemption mechanism strongly correlates protocol performance with token value, resulting in incentive alignment amongst major stakeholders, including validators, delegators and WAGYU holders.
Economics
On launch day, Tenderize v2 will charge a 0.5% streaming fee on tTokens and a 0.05% fee on swaps through TenderSwap. Protocol revenue is automatically directed to the protocol treasury. The treasury is a contract which collects revenue generated by the Tenderize protocol, including revenue generated from assets within the protocol treasury.
Productive Treasury
Instead of distributing revenue directly to stakers, revenue is put to work in various yield-generating strategies. These strategies are designed to compound protocol revenue while improving liquidity and user experience for the users. Such strategies include:
Providing liquidity on Tenderswap (Autonomous Liquidity Provision)
Providing liquidity to tToken indexes
Lending tTokens
Looping tToken yield
The protocol features various fee switches that can be increased or decreased to generate revenue for the productive treasury. Revenue streams include Tenderswap swap fees, tToken streaming fees, borrow fees against tToken collateral, looped yield tToken vault streaming fees, and delta Neutral tToken vault streaming fees.
Price Floor
$WAGYU is proportionally redeemable against the protocol’s treasury. An ability to redeem produces a price floor for $WAGYU equal to its proportional value of the treasury.
💡 The circulating supply of $WAGYU is 100,000,000 and the value of the treasury is $10,000,000, $WAGYU has a price floor of $0.1
The future value of the treasury will always be higher than its current value because the treasury is made up of productive assets and revenue streams. It is hard to determine what the fair market value for WAGYU should be, but one can calculate an expected future price based on current treasury + discount of future expected revenues.
Utility
The initial utility of $WAGYU is staking to the Tenderize Governance Module. Once staked, these users participate in parameter adjustment votes and productive treasury strategy votes. By providing these key services to the protocol, $WAGYU stakers earn the right to redeem tokens from the treasury. This mechanism effectively shares protocol revenue with $WAGYU stakers.
Governance
Once staked, users have the opportunity to vote on key governance decisions. Tenderize v2 doesn’t take a traditional DAO approach, but rather takes a governance-minimized approach. This means that the contracts will live in a near final state on launch day to reduce risk of capture or collusion. WAGYU stakers vote only on adjustments of key parameters.
TenderVault Key Parameters
These critical contracts take a governance zero approach. - on launch day, the protocol which mints and burns tTokens will exist in a finished state with no upgradability.
Liquidity incentive distribution
TenderSwap Key Parameters
Target liquidity ratio
New asset additions
Liquidity incentive distribution
tToken Index Parameters
Allocation Per Validator
Management Fee
Staking incentive distribution
Liquidity Incentive distribution
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