Introducing Diamond Protocol: The DeFi Super Carrier
DeFi protocols have managed high TVLs, but the adoption of DeFi is still far from mainstream. For this reason, people continue building new DeFi primitives and designing novel ways to incentivize people by providing liquidity. Yield aggregators or vault products are good solutions for both DeFi protocols and retail liquidity providers because they offer vaults for people to quickly and easily deposit assets and earn yields through trading or providing liquidity for DeFi protocols. Vaults are now the primary way for crypto natives and even protocols to manage wealth.
Along with the developments of new DeFi products and derivatives, there will be a more vital need for liquidity and more opportunities to earn yield. We see many new yield aggregator or vault products come out, but that means a considerable amount of repetitive work and resources are being wasted. Therefore we believe there is a strong need for a vault protocol to act as a base layer upon which DeFi strategists or builders can formulate the best-earning strategies and deploy them on-chain. This way, they can deliver new DeFi strategies faster and safer, and together we can attract more liquidity from the traditional financial system into the DeFi world.
What is Diamond Protocol?
Diamond Protocol
Diamond Protocol aims to be the “Super Carrier’’ of DeFi vaults and strategies. DeFi strategists can generate their vaults and deploy multiple strategies manifested on-chain by using Diamond’s vault factory, smart contract templates, and user interfaces.
Strategists will earn revenue directly from the vaults according to the fee models. The DAO will receive revenue sharing from Vaults as the protocol income and is responsible for governing and enlarging the Factory and the Vaults on board. The protocol doesn’t govern or charge the strategists but gives extra rewards according to their contribution. Diamond hopes to build a community of DeFi strategists and in time let them become the owners of these protocols.
The Diamond Factory plans to offer:
- Vault factory for Modular Vault on multiple Layer 1 and Layer 2 blockchains. The vault can deploy funds into numerous strategies, and the creator can configure the vault’s asset, fee model and tenors, etc. The vault will follow the EIP-4626 standards.
- Smart contract templates of strategies and modules like adapter, auction, OTC, and incentives can be plugged into strategies.
- User interfaces for DeFi strategists to create and manage vaults according to strategy or types of funds.
Diamond Ecosystem
The Modular Vaults, Factory and DeFi strategists make up the Diamond Super Carrier’s core and base. Besides these, we aim to build a big and glossy upper deck — a web platform, to attract retail investors by showcasing the vaults and strategies on Diamond protocol to deposit and track the performance easily.
External Protocols can use our vaults directly to manage their underlying assets and earn yield. CEX exchanges or wallets can integrate our vaults to provide yield products to their customers. We will build adapters, API, and documents to facilitate easy adoption. We will design a commission program for anyone who brings value to Diamond protocol.
We forecast there will be more treasuries, funds, and companies willing to build DeFi strategies and use vaults to manage their own assets, and we are eager to provide customized solutions to help them. We regularly hold grants, hackathons, and bug bounties to boost contributions. The Diamond Factory is open to builders committing their codes and auditors to audit the smart contracts.
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DMO
DMO (Diamond Token) is the token for governance and value accrual of Diamond Protocol. DMO token plan to be distributed to the Diamond team, investors, liquidity, security fund, and most importantly, the community and ecosystem. We also plan to add some utilities on DMO. For example, investors can pay fees using DMO, or the commission program can be paid in DMO.
DMO token is not issued yet. We are planning a token generation event in Q2/Q3 2023.
veDMO
Curve’s ve (vote-escrowed) has built a thriving ecosystem. We plan to adopt and improve the ve system for the DMO token. DMO holders can stake DMO into veDMO to participate in the governance and value sharing of Diamond Protocol.
You will be able to lock DMO between 1 month to 1 year, and the longer it is locked will increase your balance of veDMO, therefore encouraging long-term supporters for the protocol.
veDMO holders form the DAO of Diamond protocol and have the voting power to govern anything around the protocol. One important right for the DAO is to distribute the DMO Token with 55% total supply to the ecosystem. Ecosystem tokens can be used to incentivize well-performed DeFi strategists and investors of vaults, provide grants and bounties to vault builders and auditors, and airdrop to potential ecosystem players. Eventually, the community will own the majority of the Diamond protocol. Earned fees will be distributed in the forms of veDMO, and the holders’ balances will be increased and compounded automatically.
Roadmap
Oval (2022 Q1)
We will create the first generation vaults with the most popular assets like ETH and USDC. We will design and build strategy templates in-house, including option selling, basis trading, yield farming, etc. The strategies will be reviewed, tested, analyzed, audited by external security firms, and at the end, battle-tested with our own funds. Subsequently, a web app will be launched for retail investors to deposit funds into these early vaults.
Emerald (2022 Q2-Q3)
We will release the Diamond Factory gradually in this stage. We will deploy the vault factory on-chain and open-source the smart contract templates of vaults, strategies, and modules.
Anyone can create their own vaults, either building their strategy or choosing from existing vaults. We will welcome external contributors and reward them with grant and bounty programs.
We will build the DeFi strategist community by holding several online and offline events, competitions, and more. Airdrop events will be held to incentivize potential ecosystem builders and users.
An IDO event is planned to bootstrap DMO token liquidity on decentralized exchange and provide an opportunity for the general public to invest in DMO. After that, DMO tokens will be publicly traded.
Heart (2022 Q4)
We will release user interfaces for DeFi strategists to easily create and manage their vaults and strategies. Therefore, DeFi strategists can implement their strategies and offer them to their vaults or any public vaults without developing smart contracts.
veDMO will be launched in this stage. With veDMO, DMO hodlers can share protocol value and get voting power to govern protocol through staking DMO. A web app for everyone to submit proposals and where veDMO hodlers can vote will be released. We will make sure the governance right of Diamond Protocol shifts from the team to the DAO of Diamond.
About Us
Diamond Protocol was born when the team recognized a strong need in the market for a vault protocol to act as a base layer upon which DeFi strategists can formulate the best-earning strategies. Having gained great success with Coinomo and OMO finance, this is the third project this team launched in the past two years under the OMO finance umbrella.
Our team is formed by professionals with over 15 years of experience in the traditional financial world and venture capital, as well as blockchain developers and marketers who have been in the industry since its inception. OMO is backed by Vertex Ventures, Razer, and the Spartan Group.
Diamond Protocol Links
You can join the Diamond club and enjoy first-hand perks by joining our Discord, interacting with us on Twitter or depositing in our vaults:
Discord: https://discord.gg/Nnat7wjBrA
Twitter: https://twitter.com/DiamondProtocol
Website: dmo.finance
