DAFI Announces the Launch of its “Simulate” Product

DAFI Protocol has just announced the release of its first product launch called “Simulate”. Simulate will enable users to connect their wallet, use existing crypto assets like wBTC, ETH, AAVE, LINK etc., and create dToken versions that are pegged to the underlying asset’s demand, all with minimal fees. 

Initially, users will be able to create synthetic dTokens of the four assets referenced above directly from their wallet in a user-friendly and painless process. The newly created synthetic dTokens will be pegged to the value and demand of these compatible networks, meaning the amount of a user’s dToken can change to create a demand-pegged token. 

While the action of creating dTokens is not free for users, it is extremely reasonable and is leveraged to benefit the DAFI ecosystem. Users will need to pay a small fee of 5 MATIC to create synthetic tokens. This fee will be used to sustain ongoing costs of Simulate up until the company’s onchain staking which is slated to go live in June. Additionally, the fee will help collateralize the DAFI reward which Simulate allocates to each user, with a declining reward for each new user. Lastly, this helps to reduce malicious activity and collateralizes the rewards being distributed via usage fees. 

DAFI’s founder Zain Rana explains, “While this is just the first product, it’s a step in the right direction for every decentralized network. There is a major evolution going to happen soon for every inflation model in Blockchain. It’s an enormous problem. We’re excited for the world to familiarise with the first iteration of dTokens, and this comes just before synthetic dDAFI staking is launched. It’s truly a testament to the team working tirelessly and the community who have believed in the big picture. Positive disruption.”

User-Friendly Functionality Sets the Industry Standard

Simulate will run with any Metamask wallet and leverage low fees on the Polygon change to avoid hefty ETH fees seen with most Ethereum-based transactions. Daily price feed data provided by Chainlink oracles will be used to calculate the simple network demand. Users will be able to track exactly how many dTokens they mint, including seeing the daily adjusted rate that recalibrates based on the demand of the underlying crypto assets. It is important to note that DAFI does not require any locking of tokens and does not provide staking options yet. 

An Inside Look at  Simulate’s Dashboard

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According to the official company release, this product will “demonstrate the changing rewards relative to market demand, which in essence rewards longer term users in the system, later when demand rises. It is the first link between supply & demand to reinvent inflation in every decentralized economy.”

It should be noted that the product is currently a simulation and does not represent redeemable value until staking goes live with actual burnible, convertible dTokens. Keep an eye out for DAFI’s upcoming staking functionality in June while enjoying the Stimulate platform until then.

More information about DAFI Protocol can be found on their website or their official Medium

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