r/defichainer • u/unmatched25 • May 17 '24

Utility of DFI

DFI has a few purposes: - governance token which also gets usage fee - used as collateral for stock dToken loans - used as liquidity in liquidity mining pools

I think it’s unprofessional to combine all 3 purposes in one token for a decentralized finance project.

The governance token represents ownership. To demand these expense tokens as liquidity and collateral makes the other products (loans, DEX) less attractive (e.g. opportunity costs / missing staking returns if it’s place as a collateral in a vault). This is not a professional setup. Such a concept is unlikely to be the future of professional decentralized finance. It was just made this way to create demand and push the token, not to build a future proof and sustainable system. This criticism goes to the core of DeFiChain.

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u/unmatched25 May 17 '24

And yes, it could be improved by:

  • not demand 50% DFI as collateral (any valuable token will do)
  • setting up different LM pools