DIP #12- Interest Bearing Tokens

[defi-er]

Dev Protocol should develop interest baring tokens. Interest bearing tokens (aTokens for short) are minted when you stake and burned when redeemed. The aTokens are pegged 1:1 to the value of the underlying Dev tokens that are staked in the Dev protocol. aTokens can be freely stored, transferred, and traded. While the underlying asset is staked in a property pool, aTokens accrue interest in real time, directly in your wallet!

A user’s balance of aTokens increases as interest is generated according to the current rate. This interest rate changes algorithmically, depending on the amount of funds being staked to the pool, as well as the APY.

These tokens can then be sent to Uniswap, Kyber, and other trading platforms to exchange and trade. This would incentivize users to keep their underlying stakes while using the interest bearing tokens to find other opportunities in or outside of Dev Protocol. This would mitigate users dumping without forcing them to lockup tokens which will only delay not prevent dumping.

[aggre]

Thanks for the great proposal to improve the Dev Protocol!

We have considered the same kind of token. I think it would bring some fascinating features.

There were issues with pre-DIP4 specs, so we decided not to do it. The problem was that different properties had different APY.

But now that DIP4 has made APY universal, I can consider that again.

We need to sort out how the creation and burning of that token (aTokens) and the variation of interest rates in the Dev Protocol interact. I will continue to examine this DIP.

[aggre]

Since the Dev Protocol may introduce a different APY for each Property, I have discussed this specification with @defi-er and came up with the following.

iTokens

iTokens is an ERC20 token that is minted the same number as the staking amount to Property. Canceling the staking will burn the same number of tokens. The iTokens are different types of ERC20 per Property. (similar to Uniswap's Pool tokens for each liquidity pools)

iTokens is responsible for the following roles:

• Cancelling staking and earning rewards: iTokens holders earn staking rewards generated by the Property. iTokens holders can cancel an equal number of staking.
• Perks: iTokens holders get access to the perks from the Property's authors.

Example: In the case of an OSS Property "xyz"

• When a user stakes 10 DEV on xyz, the user gets 10 iXyz.
• A user with 10 iXyz gets DEV as a staking reward according to the latest APY.
• A user with 10 iXyz gets access to perks provided by the xyz authors.
• A user with 10 iXyz can cancel the staking of 10 DEV on xyz. When this happens, 10 iXyz will be burned.