What is WTF?
But ser...WTF is WTF?
WTF is the native governance token issued by the Waterfall Defi platform. WTF token plays a primary role in facilitating platform governance, rewarding platform users, aligning incentives and capturing fee revenue generated by the platform.
Governance Through Dao: The DAO will play a crucial role in deciding key features of the protocol, including issuing new or changing existing tranche structures, voting on DeFi asset eligibility, voting on the change of WTF yield allocations, deciding on fee rates, etc.
Platform Revenue Share: The platform will charge a Redemption Fee at the time of withdrawal. A portion of the redemption fee collected by the platform is distributed to the WTF token stakers.
Dynamic Incentivization: Certain Waterfall DeFi portfolios will utilize a dynamic tranche thickness model (thickness here refers to the amount of fund deposit in the different tranches). To ensure an ideal thickness across the tranches and stabilize the risk diversification, higher WTF tokens will be rewarded to the users who deposit in the tranches with the most skewed thickness to ensure that the final tranche thickness is closest to the ideal ratio.
Structuring Fees: We envision the future versions of the Waterfall DeFi platform to be a completely decentralised risk-tranching platform, and that means composability for users to engage in creating their own strategies. Users with a certain amount of WTF token staked in the protocol will be able to propose their own tranching strategies. Once they are approved by the Dao, the creators can earn structuring fees that equate to a percentage of the total deposit in the strategies. WTF token is the primary governance token issued by the Waterfall Defi platform. WTF token plays a primary role in facilitating platform governance, rewarding platform users, aligning incentives and capturing fee revenue generated by the platform.