Dracula Goes Hunting
Dracula Protocol has launched their new staking contracts.
While many have moved away from yield farming, the Dracula community believe their innovative approach will draw investors back.
Dracula is a yield farming aggregator with a focus on burning their native token DRC.
Rewards are paid out in both DRC and ETH, with both currently yielding over 100% APR.
How does it work?
Here are the two new staking contracts:
DRC- ETH
The protocol puts user’s funds to work in various protocols, including Uniswap, Sushi and Pickle. The rewards are sold for DRC, with 50% being burned, 45% being sent permanently to provide liquidity in the DRC-ETH pool, and 5% going to users in ETH.
I don’t fully understand how this is designed to work in investors favour, receiving jsut 5%, with 45% being sent into the pool, diluting their percentage. It’s entirely possibly that I’m missing something here, and the website is showing a > 100% APR.
DRC - DRC
Stakers in this pool receive BLOOD LP tokens and are awarded a 4% share of the minted DRC, which will continue to be minted until the 10m hard cap is reached.
Although CoinGecko shows that that cap has already been hit, community members inform me that it is incorrectly including burned tokens and DRC in the dev fund.
Conclusion
Currently the Dracula protocol is bleeding out, now at just a $255k market cap, and whether or not this is an opportunity for investors is beyond the scope of this blog.
As always, nothing I write is investment advice and you should always DYOR.
The only aping in I condone is aping into voting!
If there’s one word to describe Dracula it’s ‘interesting’, and whether the deflationary approach will drive investors to acquire the DRC token remains to be seen. I’m also curious to see how the platform will move forward after the 10m cap is hit.
At PieDAO we’re following a different strategy, with a focus on token buybacks rather than burns. If you want to understand more about our philosophy you can read a fantastic post from Joel Monegro here.
I’m glad that different communities are choosing widely differing strategies in this space, and we can all learn from each other moving forwards.
Get involved in the Dracula discord here.