Treasury

The funds and assets of the Protocol

The Treasury holds all funds and assets of the Protocol which are allocated for various purposes. It supports the health and daily functioning of the Protocol. The Treasury provides a sustainable business model to support the growth and development of the community and the ecosystem as a whole.

TREASURY FUND

The DUCA Treasury is a fund dedicated to store DCM which can be used to mint DUCA as required to be distributed as DUCA Yield.

The Treasury gives all participants the certainty that the incentives can be distributed. It is sustainable and provides transparency and the guarantee that the required collateral to mint DUCA is present and DUCA is not unsustainable or artificially inflated.

The Treasury Fund is provided with DCM tokens via three different sources. The DUCA Treasury increases through the Par Value Calibration. Whenever the Par Value is calibrated on the MA200, DCM will be taken from the Reserve and added to the Treasury increasing the liquidity in the Treasury. Secondly, all Seigniorage that is paid within the Protocol is added to the Treasury Fund. Third, the Treasury Fee is a fee that is paid by both the DCM and LPD owners and added to the Treasury Fund.

OPERATING FUND

The Operating Fund receives all the yield, transaction fees and profit from the DUCA Market Maker. These funds are used to pay for the operating costs of the Protocol. The Operating Fund accumulates fees and yield until a maximum of funds is accumulated. Any funds above the target maximum will be transferred to the Community Fund. The initial maximum size of the Operating Fund is equal to the total costs over the last 90 days.

The Operating Fee from the Stability Pool activates when the size of the funds is less than the total costs over the last 60 days. Whenever the target backing for 60 days is present, the Operating Fee from the Stability pool is zero.

  • The fee is 4,0% over the difference between the target size of the Operating Fund and the current size + 1% paid once every 24 hours.

DMM FUND

The DUCA Market Maker Fund ("DMM Fund") is the fund that holds all the DMM pool tokens. The pool tokens represent the liquidity in the DUCA Market Maker and all liquidity is fully owned by the Protocol and stored in the DMM Fund. All yield and incentives derived from the pool tokens are added to the Operating Fund.

COMMUNITY FUND

The Community Fund is the fund that holds all funds that can be distributed to and by the community, for work done and support delivered. Through governance, additional incentives can be distributed that will be created by making use of the DCM present in the Community Fund. In this way, stakeholders can be approved to be allocated a one-time or repeating grant distributed in DUCA.

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