gm Plutons,
We’re approximately three weeks away from launch and the public token generation event! In the meantime we’ve been hard at work behind the scenes (and so have you with all the memes and threads — thank you!) to deliver on what we’ve promised to you all. We’ve also onboarded a new front-end dev and are looking to onboard one more in the upcoming weeks. Exciting times ahead!
This article is the first of six in the article series we’ll be presenting to you in these coming weeks leading up to launch. We’ll be dropping two articles a week, and by the end of the next three weeks our objective is to have you all extremely well-versed in the Plutus and Dopex ecosystems.
The way we’ve structured our article series is starting out from basics and then slowly diving in deeper. We want everyone in our community to be in a place where they feel they’ve got a great grip on Plutus in terms of usage, value and tokenomics before we launch.
In this first piece we’ll be highlighting the key players of the ecosystem and where the value creation for both individuals and protocols actually happens. We’ll have a comprehensive flowchart to satisfy the needs of even the most demanding readers, but most importantly we’ll try to lay out everything in an extremely understandable and easy-to-read manner.
Kick back and grab a drink — it’s time to dive in deep! 👇
Key Players in the Plutus Ecosystem
The Dopex ecosystem has seen extremely quick growth since its inception. We’re only a couple of months out since Dopex launched SSOVs, yet the ecosystem has grown rapidly and only seems to be picking up pace. The thinking behind Plutus has always been to make the entire ecosystem better — both for the protocols and their users. Significant thought has gone into ensuring that all participants gain +EV from Plutus’ launch and that the community gets the brunt of the benefit.
To kickstart this article series, we feel it’s important to clearly outline who the key participants in the ecosystem actually are and what role they play. We’ll also provide concrete and clear examples on how each group benefits from Plutus. Creating a balanced ecosystem where all actors benefit is tricky, so for your reading pleasure and comprehension, we’ve attached a detailed tokenomics flowchart below for you to decipher. The paragraphs below it explain everything in layman’s terms, while the flowchart goes more in-depth.
The key parties involved in Plutus and it’s flywheel at launch either directly or indirectly are the following:
- PLS holders and stakers
First and foremost, PLS holders and stakers have a unique opportunity to gain significant yield, protocol fees and most importantly governance power through owning and staking PLS. This can be characterized as a long-term play — front-running veDPX and veJones models means that the opportunity is not yet understood by many and therefore Plutus holders represent a small subset of people who understand the massive value that having governance over Dopex, Jones and other future ecosystem projects will have in the near future. We envision that bribing PLS holders will be the most cost-efficient way for powerful individuals and DAOs to steer DPX governance. We believe that in the very near future most said players will be priced out from accumulating significant amounts of DPX to actually matter. Plutus lockers will gain access to a larger share of the Productive Treasury yield and likely enjoy significant bribes in the future, similar to the dynamic between Convex and Curve.
2. Dopex protocol, DPX holders and stakers
DPX holders and stakers stand to gain significantly as Plutus will be a black hole for DPX tokens. This will create meaningful scarcity as we expect to lock up anywhere from 10–20% of DPX’s circulating supply. In an optimal scenario, this number could be even higher. This mechanism takes place through people minting plsDPX. As a reminder, any DPX accumulated by Plutus through minting won’t ever come back on the market again, but will rather be max-locked for veDPX. The fact that a massive amount of the DPX supply is locked up will inevitably lead to price appreciation in DPX. As for the DPX protocol, it’s beneficial to have a project aggregating governance that’s completely aligned with the Dopex vision. The more DPX is locked, the more influence Plutus gains and the better the flywheel operates.
3. plsDPX stakers
In essence, plsDPX stakers are one of the biggest beneficiaries of Plutus right after PLS holders. At the end of the day, we believe that DPX stakers want great yield that’s liquid — which is our core offering. Plutus will offer the minting of plsDPX by giving your DPX to Plutus at a 1:1 ratio. We’ll also incentivize a liquidity pool through which you can trade back from plsDPX to DPX to ensure liquidity. As for details, plsDPX stakers get a total of five different layers of yield (pictured below).
Compared to simply staking DPX in the native single-sided farm, the rewards will be significantly higher. Due to the several sources of yield, this is true even before veDPX launches. Staking plsDPX can also be seen as a fantastic way to accumulate Dopex ecosystem projects, as you’ll be earning DPX, Jones and PLS from your stake. Very powerful. Maximum rewards will be achieved when veDPX launches and plsDPX stakers can effectively get max-boosted veDPX yield without locking up tokens at all. Remember — you can always trade plsDPX back to DPX through or native liquidity pool.
4. Jones protocol, Jones holders and stakers
The case for Jones protocol and its holders and stakers is equivalent to the Dopex one — scarcity, utility to users and a friendly partner. We believe in synergy, and having Jones governance power under Plutus makes the Dopex governance even stronger. PLS holders get to govern not only one but two key protocols in the ecosystem.
5. plsJones stakers
The plsJones model operates in the exact same way as its plsDPX counterpart — much higher yield than the native single-sided farm while enjoying the benefits of accumulating ecosystem projects through multiple sources of yield and rewards. Here’s a breakdown of what plsJones stakers can expect.
6. LP stakers
Staking in plsDPX-DPX or plsJones-Jones LPs will yield significant rewards as those pools will be incentivized with PLS emissions and they gain a share of the trade volume that goes through pools. There’s likely to be some good arbitrage action that pushes up the trade volume, thus resulting in more fees for LP stakers.
We hope this article has given you a comprehensive overview of the participants in the Plutus ecosystem and a window into how we think about protocol design — win-win-win is in Plutus’ DNA. For more details on our tokenomics, please re-visit our Tokenomics Medium Article. After this introductory article, we’ll next be digging into the value proposition of aggregating governance in the Dopex ecosystem.
We feel it’s important to educate and be as transparent as possible as the road towards launch is well underway. This means you can be on the lookout for more articles very soon, and if you have any questions, please don’t hesitate to hop in our Discord to chat. We’re more than happy to help!
