DHV vs DeHive Index 🤔🤔🤔 DeHive Tokenomics: Preliminary Architecture

The DeHive protocol provides the user with the profitable portfolio of DeFi assets represented by one index token. Here we want to dive deeper into the DeHive tokenomics and describe how you can benefit from DHV token holding.

Team DeHive

Published in

DeHive

5 min readFeb 25, 2021

Why and where do you need DHV?

Initially, DHV is a native token of the 🐝DeHive platform that will give you access to the DeHive ecosystem, allow you to issue initial DeHive Indexes or create your own, participate in additional protocol features, and take part in protocol governance through DAO mechanisms.

The DHV token can be acquired in several ways: in private or public token sale rounds or through one of the supported exchanges.

Stay tuned for a future announcement and JOIN OUR HIVE in 👉🏼Telegram🐝

10m DHV tokens will be minted for the purposes of protocol maintenance. The following graph represents the distribution and circulating supply of DHV tokens.

dhv token, dehive token, dehive index, dehive tokenomics — DHV token distribution

15% of DHV tokens for pre-sale and public sale round;
8% of DHV tokens for private sale (seed) round;
6% of DHV tokens will be allocated for DeHive strategic partners;
1.5% of DHV will be available to acquire during IDO and IEO events
15% of DHV tokens will go to liquidity miners of DHV;
20% of DHV will be secured for company reserved;
15% of DHV for the community, partnership and incentivization. The first part of these funds will be deposited for the DEX offering. Thus, we will provide additional liquidity to the market and make it available for the community;
19.5% of DHV tokens for the team and further development.

In addition, users will have an opportunity to get more DHV tokens while staking their existing DHV along with DeHive Index or as a reward during protocol integration with other protocols. Let’s talk about this in more detail.

How do you buy the DeHive Index on the platform?

It is important to stress that 🧨🧨🧨there is no commission to pay to acquire any of the DeHive Indexes🧨🧨🧨

In order to acquire the DeHive Index, the user needs to make a contribution in ETH corresponding to the weight of the selected underlying assets that represent the index.

The platform will provide you with current and up-to-date asset prices thanks to an in-built system of oracles.

DeHive index redemption

First of all, the whole DeHive team will be extremely sad should you decide to exit the community and liquidate your indexes 😢. Nevertheless, our aim is to build a decentralized and equal world with no prioritization, so, of course, we will provide you with index redemption ability.

What do I do if I want to withdraw the underlying assets and liquidate the index?

In order to exit, the user contributes the index or indexes to the platform and provides a certain amount of DHV tokens that will go to the protocol treasury and participate in subsequent rounds of liquidity mining, rewards distributions, etc. That way you can be sure that you will be supporting the protocol’s economy. The user receives ETH in exchange for redeemed indexes at the current market price, which is provided by the system of integrated oracles.

WHAT IF I DON’T HAVE DHV?🧐

If the user does not have the required amount of DHV tokens, the platform will ask for an additional small amount of ETH to your initial contribution and buy DHV automatically from external sources.

The platform also enables an option to exit in the underlying tokens instead of Ether. In this case, the user will get a balanced amount of each token that backs the index. Moreover, the protocol gives the ability for every user (willing to cover the slippage) to exit in any underlying token in any proportion they like.

DeHive Index staking and staking rewards

Of course, index holding is not the only option available within the protocol. In order to enable yield farming, the user needs to stake the DeHive Index along with a supporting amount of DHV tokens. The DHV deposit will be returned to the user together with the profit from the yield farming after the unstaking (which is available at any point).

The platform sends the underlying assets to the chosen liquidity farming strategies to generate the maximal profit.

DHV staking rewards

As soon as a user locks up their index + DHV, the protocol will start to generate additional DHV tokens in an equal proportion to their deposited amount. Thus, the platform enables liquidity mining opportunities within the protocol.

After the unlock, the user gets their index back along with the yield farming reward converted into the index as well. Further, they take the deposited amount of DHV and all of their unclaimed DHV tokens from the liquidity mining protocol.

Creation of custom indexes

DeHive is the first-to-market DeFi protocol that will allow the issuing of custom indexes. The user will be able to select the underlying crypto assets based on their own trading experience, market research and analytics.

In order to introduce any custom index, the platform will require a supporting amount of DHV tokens to place an offer of an index for approval from protocol users. As long as the underlying assets are accepted, the platform will enable custom index issuing and listing.

Protocol governance

The DeHive platform will provide the ability to take part in protocol governance through the implementation of a DAO.

One of the main advantages of this is the ability to vote for the next index to be issued and supported by the platform. As described before, protocol users are able to create their own indexes with a variety of underlying crypto assets.

In this case, DHV token holders will be able to vote and approve the set of underlying assets they believe is needed and is economically sound. Also, DAO participants will be able to vote for including earlier created custom indexes into yield farming strategies with all the benefits available for the creator and supporters of that custom index.