💰Complex DEX Model

Leveraging the Algorithm-stabilized Cat ecosystem to attract comprehensive participation from users and investors into CYCat DEX.

The complex index model aims to comprehensively attract users and investors to participate in the CYCat index by leveraging the algorithmically stable Cat ecosystem. Specifically, this involves utilizing the algorithmic stablecoin USDCat to incentivize users to stake CYCat tokens, mint USDCat, and engage in various decentralized exchanges dominated by CYCat.

  1. Staking Mechanism:

    • Users can participate in index construction by staking CYCat tokens. For instance, staking 1000 CYCat tokens serves as a foundational asset for the index.

  2. Minting Method:

    • By staking CYCat tokens, users can obtain a corresponding amount of the algorithmically stablecoin USDCat. For example, staking 1000 CYCat tokens allows users to mint 500 USDCat. Assuming the current market value, each USDCat is valued at 1 USD.

  3. User Profit Mechanism:

    • Minting Rewards: Users staking CYCat tokens and minting USDCat can earn additional rewards during the minting process. For instance, receiving 50 CYCat tokens as a reward per minting cycle.

    • Holding CYCat Token Profits: Assuming a quarterly increase of 5% in the CYCat index value, users holding CYCat tokens may experience corresponding capital appreciation or receive dividend rewards in USDCat form.

  4. Classification of Decentralized Exchanges:

    • Liquidity Mining-based Exchanges: Users can provide minted USDCat to liquidity pools and earn trading fees and liquidity mining rewards. For example, earning 10% of monthly trading fee revenue and 2% of liquidity mining rewards.

    • Index Fund-based Exchanges: Users can trade pairs related to the CYCat index, such as CYCat/USDCat, on index fund-based exchanges and engage in trading and investment based on index performance.

    • Community Governance-based Exchanges: Users holding CYCat tokens can participate in governance and decision-making of exchanges. For instance, voting to decide on adding trading pairs or adjusting fee rates.

Through these mechanisms, users can participate in the CYCat index ecosystem by staking CYCat tokens, minting USDCat, and engaging in various types of decentralized exchanges, thereby obtaining corresponding rewards and profits.

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