DEBT PROTOCOL #1— Presentation

Welcome to the first Debt Protocol article! Today, we are going to present our project, what has been done so far, and express our opinion on the possible applications in the future.

To start with the simplest definition, DEBT is a decentralized finance protocol that aims to capture significant dominance in DeFi through innovative and intuitive applications.

What is Debt Protocol (and what makes it unique) ?

Let’s start from the beginning …

How does the Debt Protocol work?

The Debt Protocol inside the $DEBT token

This is done automatically, which means that if you have debts to pay to a higher tier, DEBT will be deducted from your account. You will also receive debt tokens from the tier below yours and even from the tiers above yours depending on their actions for the system.

The debt incurred is reflected every 10 minutes in each user’s wallet and amounts to 1% of the total holdings per day. It is updated in the pool above every time a user does a transaction.

Example

If a user owns 1M DEBT token, he will have to pay 10k tokens (1%) every day. This means that he will see his tokens decrease every 10 minutes by 70 tokens and reach a total amount of 10k DEBT after 24 hours. Those 1% will be credited to its creditors, which means the wallets in the Tier above the user. It also means that users in the Tiers below are your debtors and will pay you 1% each day.

Is there an advantage to HODL ?

Number one: Someone that never sells his tokens sees his tokens count double in the calculation of his tier.

Example: someone holds 400’000 DEBT and never sold any $DEBT. The protocol will assign him to a higher tier if 400’000 x 2 = 800’000 DEBT is enough!

Number two: Everyone who buys a predefined amount of $DEBT, or more, will be exempted from debts for the next 12 hours! At the moment, the minimal amount is 20 million $DEBT.

Governance, what about it?

Why not renouncing it then? Because it allows governance to be applied. What can be done with the contract is changing the threshold of each tier and the percentage of debts paid per day & the percentage of selling fees (up to a maximum of 10%). Changing the threshold is useful if the price of the token increases/decreases too much. This way, it prevents new buyers from, for example, having no chances of getting into a higher tier, or, on the contrary, if the price drops too much, it prevents having everyone in the top tier.
For all those reasons, in the future, we will implement governance in order to let the community decide what is the better option for the protocol to work.

In the future …

A more realistic plan for the moment is to create a market for Synthetics or NFTs around the token, directly benefiting from his technology.

If you want to learn more about our future plans, we kindly invite you to read our website.

Thank you for reading this article!

Join our community :

Twitter : https://twitter.com/Official_Debt.

Telegram : https://t.me/debtprotocol