Bank of Cronos (BOC) — a community-driven decentralized autonomous organization (DAO) that aims to develop and maintain decentralized finance (DeFi) protocols on the Cronos network.
About the Bank of Cronos project
The treasury of the Bank of Cronos will consist of a basket of assets (e.g. USDC, DAI) which assumes a value below which it cannot fall. The Bank of Cronos token and treasury is implemented as a modified fork of the Olympus DAO protocol (which can be seen on Ethereum) and provides economic momentum through a staking strategy and bonding.
The team believes that in the long term, this system can help to optimize stability and consistency so that the BOC can serve to distribute profits from the BOC treasury and its various protocols.
Through rates and bonds, Bank of Cronos offers market participants two main strategies:
| 1 | Stakers stake their BOC tokens in exchange for more BOC tokens. |
| 2 | Obligators provide LP or tokens in exchange for BOC tokens at a discount after a fixed vesting period. |
The BOC token is only minted when 1 DAI/USDC passes through the protocol. In this way, Bank of Cronos ensures that users no longer need to use many DeFi bonds and/or swap platforms. The main benefit for stakers comes from increased supply. The protocol mints new BOC tokens from the treasury, most of which is distributed among the participants. Thus, profits for stakers will come from their auto-adding balances, although price risk remains an important factor. That is, if the increase in the balance of tokens outpaces the potential drop in price (due to inflation), the stakers will profit.
The main advantage for bonders - price stability. Bonders contribute upfront capital and are promised a fixed income at a set point in time; this yield is in BOC, and the guarantor's return will depend on the price of the BOC at maturity of the bond. Bonds benefit from rising or static BOC prices.
More about defi app
Bank Of Cronos has allocated BOC for distribution through Fair Launch and Initial Public NFT Offering (IPNO). After the closure of the IPNO, those who created the NFT are not required to take further action. They will be sent their share of the tokens, based on the NFT they own. By creating any of the 3 levels of NFTs, you fund a liquidity pool, LP and launch Bank Of Cronos. Half of IPNO's proceeds will be used as the opening treasury balance and the other half will be used for the initial USDC liquidity pool.