Waterfall DeFi Token Metrics
The launch of the WTF token will enable users to better engage with the protocol — users can stake their WTF token into the staking pool and receive governance/voting rights and a share of the platform fees. This post will share more information on WTF token economics and the role of the WTF tokens in engaging with the protocol. Section One will have a brief overview of our token economics and then elaborate on each token allocation category in greater detail, while section two will cover the general use case for the WTF token.
This assumes general knowledge of Waterfall DeFi, if you would like to read our docs it can be accessed here (There are also introductory posts about Waterfall DeFi on our Medium page, or you can get more updates by following our Twitter, Telegram and Discord accounts).
Token Ticker: $WTF
Token Address: 0x2fa0cac2c75efb50382b5091c6494194eacf65b0
Total Token Supply: 100,000,000 (100%)
Initial Circulating Token: 5,000,000 (5%)
Token Allocation by percentage:
WTF Token Circulating Supply Increase Over Next 5-Years:
WTF Token Distribution:
45% WTF Tokens Allocated for Community
Community allocation serves to develop user acquisition and engagement of Waterfall DeFi. WTF tokens allocated in this category will be rewarded to our users through various yield farming programs.
- 45% of the total WTF supply (45,000,000) is allocated to Community.
- WTF tokens in this category will vest weekly after launch. 50% of the total WTF tokens in this category will be unlocked during the first two years, post which the emission is halved every two years (e.g., only 25% unlocks during the year 3 and 4, and 12.5% during the year 5 and 6, and so forth.). The community emission schedule is designed to reward early adopters while ensuring a long term sustainable yield farming program.
20% WTF Tokens allocated for Partners and Product Development
Partners and Product Development allocation is reserved to ensure continuous growth of the Waterfall DeFi ecosystem through partnerships, grants, future fundraising and product development programs.
- 20,000,000 WTF tokens (20%) have been allocated for Partners and Product Development.
- All WTF tokens under this category will follow a fixed emission schedule, where 10% of the WTF tokens will be unlocked post bootstrap stage and the remaining 90% is linearly vested over 104 weeks thereafter.
10% WTF Tokens allocated for Strategic Investors
Strategic Investor allocation is reserved for our earliest backers. Our investors are committed to helping us realize the long term vision of Waterfall DeFi through their expertise and experience in the DeFi sector.
- 10,000,000 WTF tokens (10%) have been allocated to Waterfall DeFi’s partners who will assist in expanding the Waterfall DeFi ecosystem.
- Just like Partner and Product Development, WTF tokens under this category will follow a fixed emission schedule, where 10% of the WTF tokens will be unlocked post bootstrap stage and the remaining 90% is linearly vested over 104 weeks thereafter.
10% WTF Tokens allocated for Team
The Team allocation of WTF tokens is reserved for the current and future employees of Waterfall DeFi. Our team has diverse and comprehensive expertise spanning cryptocurrency, finance, business and technology.
- 10,000,000 WTF tokens (10%) have been allocated for current (and future) Waterfall Defi Protocol employees.
- All WTF tokens under this category will follow a fixed emission schedule, where 10% of the WTF tokens will be unlocked nine months post-launch, while the remaining 90% is linearly vested over 104 weeks after that.
13% WTF Tokens allocated for Treasury
- 13,000,000 WTF tokens (13%) have been locked within the Treasury. Once the DAO is live, WTF token owners can propose and vote on the Treasury fund utilization.
- All WTF tokens under this category will be 100% unlocked at launch and sent to the Treasury.
Note: The Treasury tokens will not be a part of the initial circulating supply, and will be locked behind a multi-sig account for future use.
2% WTF Tokens allocated for Public Sale
Public Sale allocation is reserved for the public sale of WTF tokens prior to the listing. As a decentralized protocol, Waterfall DeFi recognises the importance of having an active and engaged community. This allocation allows believers of our project to be part of the community ahead of the public listing.
- 2,000,000 WTF tokens (2%) have been allocated for Public Sale, more details to follow in future.
- All WTF tokens under this category will be 100% unlocked at TGE.
WTF Token Utility
WTF token is the primary governance token issued by the Waterfall Defi platform. WTF token plays a primary role in facilitating platform governance, rewarding platform users, aligning incentives and capturing fee revenue generated by the platform.
WTF Token Functionality:
Governance through DAO: The DAO will play a crucial role in deciding key features of the protocol, including issuing new or changing existing tranche structures, voting on DeFi asset eligibility, voting on the change of WTF yield allocations, deciding on fee rates, etc.
Platform Revenue Share: The platform will charge a Redemption Fee at the time of withdrawal. A portion of the redemption fee collected by the platform is distributed to the WTF token stakers. For more details about the staking process, please refer to the article here.
Dynamic Incentivization: Certain Waterfall DeFi portfolios will utilize a dynamic tranche thickness model (thickness here refers to the amount of fund deposit in the different tranches). To ensure an ideal thickness across the tranches and stabilize the risk diversification, higher WTF tokens will be rewarded to the users who deposit in the tranches with the most skewed thickness to ensure that the final tranche thickness is closest to the ideal ratio.
Structuring Fees: We envision the future versions of the Waterfall DeFi platform to be a completely decentralised risk-tranching platform, and that means composability for users to engage in creating their own strategies.
Users with a certain amount of WTF token staked in the protocol will be able to propose their own tranching strategies. Once they are approved by the Dao, the creators can earn structuring fees that equate to a percentage of the total deposit in the strategies.
About Waterfall DeFi
Waterfall DeFi is a decentralized protocol that brings true risk tranching to the DeFi landscape. Leveraging the protocol’s portfolio diversification and risk tranching feature, we will provide the community an efficient alternative to optimize their yield farming strategies with combinations of risk and reward at users’ fingertips.