The Dracula Protocol offers "One tool to Farm them all" with a platform that allows for automated, streamlined "meta" yield harvesting for many "victim" platforms such as Uniswap, Sushiswap, Pickle, Lua, Dodo and more coming.
How it works for Users:
- Users deposit LP tokens from "Victim" platforms
- Protocol harvests rewards daily, ie "drain"
- this socializes gas costs and automates the reward collecting
- Protocol trades these rewards for ETH
- ETH enjoys %APY% until Users claim their rewards
- Users can claim in ETH or $DRC token which is bought on open market (ie buy pressure)
Users thus can set it and forget it (LP tokens) and let their ETH rewards compound.
Meanwhile, for $DRC holders and stakers on the platform, DRC offers 3.75% cash flow of the total APY of TVL from Victims. Consider the following:
- TVL of Victim protocols > $5b
- Dracula Protocol captures 4% of this: 4% of $5b = $200m
- Ie $200m in TVL on Dracula Protocol with yield of 15% apy
- $200m in TVL at 15% apy = $30m
- $30m at 3.75% = $1.125m cash flow to DRC stakers
- Assume # DRC staked = 10m (recall <15m supply)
- A bag of 10k DRC (currently $10k) is .01% of the staking pool ie 10k/10m = .01%
- .01% of $1.125m = $1125 in cash flow.
- ie $1125 on $10k = 10%+ passive yield
Note this yield doesn't factor in any appreciation of the underlying staked DRC token. DRC sits at a 10m fully diluted market cap. The protocol saw some curious price action over the past few weeks with a big selling the news effect plummeting the price == great time to consider a position.
Per the example above, with $200m in TVL and a mature Mkt cap:TVL ratio of 0.5, the market cap of DRC would be $400m, a 40x from the current price.
As the Dracula Protocol attracts TVL, it will truly start to suck Defi:
Visit https://v2.dracula.sucks/ to read more
Join https://t.me/DraculaProtocol to chat with the community & ask any questions
Check https://duneanalytics.com/sirbundyman/Dracula-Protocol for hodler and staker statistics