Improve v2 Protocol Staking (Olympus DAO, Rehypothecation)
Mentioned previously at the release of our v1 staking (the veWTF lock-up & earn module), the ultimate goal for Waterfall DeFi is to turn the protocol into a blackhole of its own token — the $WTF. As part of ensuring the WTF tokenomics are healthy and sustainable, the upcoming v2 staking will aim to further reduce circulating supply and make WTF deflationary. Existing reserve currency mechanisms pioneered by Olympus DAO and further iterations by other similar protocols show great examples of absorbing good quality revenue generating assets into the DAO treasury. To boost $WTF’s value to the ecosystem, we will build gauges for Waterfall so $WTF emissions will be directed to farms through DAO gauge weight votings (by bribing veWTF holders’ vote), in addition to blending mechanisms from Convex / Olympus models to capture circulating supply into our DAO treasury, limiting supply and therefore outpacing demand for $WTF.