Diamond Hand Investment Vaults Launch
For the intro articles on Iron Finance Investment Vaults see:
Following the successful launch of Iron Finance Investment Vaults on 20 April, we are excited to launch the Diamond Hand dBTC and BNB Investment Vaults. This is a very notable sustainability upgrade for the Diamond Hand ecosystem and is expected to go live within the next few days. Value DeFi is again working with us on developing these custom-made vaults. Along with the BTC and BNB vaults launch, we will also kick off dETH. After dBTC and dBNB, this will be the third synthetic dToken.
Since we already mentioned dETH, here is some more information. Same as for current dBTC-BTCB and dBNB-WBNB farms, we will launch a Value DeFi dETH-ETH farm with DND rewards, of course. An ETH investment vault will also be launched. All realized profits from the ETH vault will be distributed as rewards for DND stakers in the dETH Castle. More information about dETH farming will be shared at least a day prior to launch.
As with Iron Finance’s Investment Vaults, the Vaults of DiamondHand will kick off with 50% Invested Collateral Ratio as well (instead of 75%, as voted in IFGV#4) and will gradually increase to 75% over a short period. We will also start with a 25% Reserve Threshold Ratio.
All realized BTC, BNB and ETH profits from investment vaults will be allocated for the BTC, BNB and ETH Castles, respectively. As a measure for the protocol to have sufficient collateral for daily redemptions, excess collateral will no longer be paid out to the Castles as rewards since a large part of the collateral will be invested via the Vaults to generate more sustainable income for the protocol and for the Castle. This may decrease the yield in the short-term but definitely offers a mid and long-term profitability growth potential and a more sustainable reward system.
Lastly, the Diamond Hand audit report by Omniscia will be published over the weekend. Thank you for your attention!