CherryLend Tokenomics
We’re excited to release the CherryLend tokenomics. The rest of this article will explore what to expect, and how to get involved with our community.
Contents
- Introduction
- CHRY Utility
- Tokenomics
- Final Remarks
1. Introduction
CherryLend is an open-source and non-custodial lending protocol on Cardano, and we strive to be a leading platform with a simple strategy: secure code, superior user experience, and the strongest incentives.
We recently released our official litepaper and our first development update.
As we prepare for our mainnet launch, today we give an inside look at our tokenomics.
2. CHRY Utility
CHRY token utility is designed to provide value to supporters of the protocol. This will be done through these two primary methods: Fee Generation and Governance.
Fee Generation
The CherryLend protocol is designed to earn revenue in multiple ways, including:
- Interest: a percentage of each loan paid by borrowers;
- Liquidation fees: percentage of collateral liquidations;
- Portal fees: fees incurred when using integrated dApps via the CherryLend interface.
Earned interest payments will be the most prominent source of revenue for the CherryLend protocol.
Interest earned by the CherryLend protocol will be utilized to provide
maximum benefit to CHRY holders.
Interest earned by the protocol will be handled in the following manner: Each time 100 ADA’s worth of revenue is generated by the protocol, 50% or 50 ADA will be converted in the open market CHRY and used to deepen liquidity of both the ADA lending liquidity pool and the CHRY lending liquidity pool.
Governance
CherryLend is structured as a decentralized autonomous organization (DAO) where holders of CHRY decide the future direction of the CherryLend protocol.
Matters of importance that will be determined by CHRY holders include: fees charged, supported tokens on the platform and utilization of treasury proceeds (primarily interest and fees earned).
CHRY tokens represent a 100% governance stake of the CherryLend protocol.
3. Tokenomics
CHRY is the platform token for the CherryLend protocol.
There is a total of 88 million (88,000,000) CHRY tokens.
Allocation for CHRY is detailed below from largest to smallest:
- Incentives: 75% (66,000,000 tokens)
- Team and Advisors: 10% (8,800,000 tokens)
- Pre-sale: 5% (4,400,000 tokens)
- Developer Fund: 5% (4,400,000 tokens)
- DAO: 2.5% (2,200,000 tokens)
- Liquidity: 2% (1,760,000 tokens)
- Marketing and Airdrops: 0.5% (440,000 tokens)
The token distribution is as follows:
Emissions
Below displays the estimated CherryLend emissions, which is scheduled to last 4 years starting from our token generation event (TGE).
Vesting
Below displays the CherryLend vesting schedule.
Update: Airdrops will be vested, not issued 100% immediately. Airdrop details will be released after the completion of presale. This update was made May 16th, 2023 at 3:07 PM UTC.
Token Generation Event (TGE)
In the following days, we’ll release details on our TGE and the CherryLend pre-sale.
Final Remarks
In this article, we released the first details of the CherryLend tokenomics.
Following this, we’ll continue to update the community on our development progress along with releasing details on TGE and CHRY pre-sale as we look toward our mainnet launch.
As the Cardano DeFi industry develops, CherryLend is committed to play a key role in building crucial infrastructure that will be instrumental in Cardano becoming, at least in part, a viable alternative to the existing global monetary system.
Join us in our mission to create efficient and robust financial tools that are built to roam beyond the reach of centralized authorities.
For more information on CherryLend:
Website | Twitter | Telegram | Discord | Docs
CherryLend is an open-source and non-custodial lending protocol built on the Cardano blockchain. CherryLend strives to become a leading DeFi platform by creating a superior user experience and offering the strongest incentives.
