Yield distribution
In FreeDona, the principal deposited by the user will be invested in DeFi protocols to accumulate yields. In DeFi lending projects, our income usually consists of two parts. For example, if we deposit ETH to the Compound protocol, we can get some ETH (Original token) as lending interests and some COMP (DeFi token) tokens distributed by Compound. In FreeDona, the two types of yields will be distributed differently.
The distribution method of the original token
As shown in the figure 8, the original token yields will be distributed in 3 ways and will be realized in different stages.
1. for User
This part of the yields is distributed to users. The user can adjust the proportion used for self-retention, and the upper limit is 50%. When the user withdraws, he will receive the corresponding part of the yields along with the principal.
2. for Donation
After deducting the user's own yields and the project maintenance cost, the rest of total cumulative yields will be used for community donations.
3. for Operation
For the sustainable operation of this public good project, such as protocol interaction, upgrades, etc., 5% of the total cumulative yields is reserved for maintenance. This ratio supports adjustments based on project operations.
The distribution method of the DeFi token
As shown in the figure 9, DeFi token yields will be used for community donation and project maintenance, not for distribution to users. The distribution of DeFi token yields will be realized in the first stage.
1. for Donation
After deducting the project maintenance cost, the left of total cumulative yields will be used for community donations.
2. for Operation
As mentioned before, 5% of the total cumulative yields is reserved for project operation. This ratio supports adjustments based on project operations.
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