3.2 Economic model

The economic model of the CreDA protocol features three options for receiving CREDA:

  1. Airdrops: Users can receive airdrops through early participation in beta testing and community contributions

  2. Mining: CREDA tokens can be mined through the CreDA protocol

  3. Rewards: Users can get CREDA rewards by participating in deposit and loan mining, or other stake mining in the vault

CREDA tokens obtained from the second and third options will be locked until the user provides market liquidity for the protocol.

Unlocked CREDA has five main purposes:

  1. Oracle service: Third party protocols need to use CREDA as a basic fee token to utilize the CreDA Credit Oracle service

  2. Mint cNFT: CREDA tokens can be used to mint cNFTs as well as upgrade them to obtain more rights and benefits

  3. Membership: CREDA holders obtain interest rate and transaction discounts as well as protocol revenue share as allocated by the CreDA protocol treasury

  4. Community Governance: Users can participate in community governance by staking CREDA to initiate and vote on proposals

  5. Liquidity Pool (LP) staking: CREDA tokens can be used to obtain proof of liquidity provision, which can be used for token unlocking and mining

All CreDA protocol revenue will be used to regularly repurchase CREDA tokens on the open market and be distributed proportionally to the stakers of CREDA and the CreDA Development Committee.

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