NFTs + DeFi: What Is Dego Finance (DEGO)?

One of the most noteworthy protocols at the junction of decentralized finance (DeFi) and non-fungible tokens (NFTs) is Dego Finance (DEGO) –  a project that aims to revamp the purpose and utility of NFTs through an array of fun and clever applications.

Dego Finance is the combination of NFTs and DeFi. The platform allows users to develop NFT-powered applications, mine, sell, stake, and trade NFTs. In essence, Dego is an open-source protocol developing a cross-chain system launched in September 2020. It was built on Ethereum (ETH) but transitioned to Binance Smart Chain (BSC) to avoid high fees and other issues related to ETH’s network.

Dego Finance Team

Dego Finance’s developers remain anonymous, they are only supported by donations. The team stated their preference for anonymity in order not to take credits for the project.

Dego Finance Functioning

The protocol has similar features to general DeFi protocols. As the Dego Finance team has stated, NFTs have more potential use cases than just being digital representations of unique items. Thus, the protocol allows NFT trading, mining, and auctioning. Dego developers want to incorporate a layer 2 cross-chain system where developers can create blockchain projects for NFTs.

In addition, Dego aims to provide an ecosystem where NFTs can have a more meaningful role in the DeFi space. To accelerate the mass adoption of NFTs and DeFi, the protocol allows users to explore several blockchains by supporting Polkadot (DOT), Ethereum, and BSC. Besides, it allows them to create and issue their assets as well as mine, trade, and distribute their tokens and NFTs on Treasureland.

The platform has been audited by Chinese blockchain security firm Beosin. The firm did not find any high-security problems. Like other BSC-based protocols, Dego uses proof-of-stake authority (PoSA), a consensus mechanism by which a cryptocurrency blockchain network achieves distributed consensus. There’s a total of 21 validators with a large number of Binance Coins (BNBs) that are responsible for validating transactions and producing blocks.

Dego Finance (DEGO) Token

The protocol’s native DEGO tokens have no private placements or pre-mines, which turns Dego Finance into a fairly distributed system. In essence, DEGO are ERC-20 tokens minted with Liquidity Mining that work as the community and equity asset. Dego holders can participate in governance proposals and vote to decide on changes to make in the protocol.

To receive DEGO tokens, users can either participate in liquidity mining or simply buy them on both centralized and decentralized exchanges such as Binance and Uniswap. Token holders receive dividends from a dividend pool that is filled using a 0.25% fee from a transaction.

DEGO tokens are also used to mint different NFTs, as well as with ERC-20 or BEP-20 tokens. The NFTs are backed by tokens deposited during the minting process. Notably, these NFTs can be later decomposed to release the tokens.

The community can propose and vote for ambassadors using their tokens. The winner will receive a Dego Ambassador Medal NFT. The winner will also have certain rights like representing the protocol at events and receiving financial support.

To earn rewards, users can stake liquidity provider tokens. Unlike in other DeFi protocols, Dego Finance’s yield farming uses a pre-designed distribution method to make a more fair system:

• 1x the reward goes to Whales (wallets with large amounts of tokens);
• 5x the reward stay with an intermediate investment;
• 3x are allocated for smaller investors.

A total supply makes up 21,000,000 DEGO. Their distribution is as follows:

• Mining: 80%, or 16.800.000 DEGO;
• Pre-sale: 10%, or 2,100,000 DEGO;
• Uniswap Liquidity Pools: 5.25%, or 1,102,500 DEGO;
• DEGO DAO (decentralised autonomous organization): 3.75%, or 787,500 DEGO;
• Airdrop: 1%, or 210,000 DEGO.

Dego NTF vs other NTFs

Dego finance is a combination of NFT and DeFi. It provides not only the classical aspects of a decentralized protocol, but also new features for NFTs. Typical NFTs marketplaces will only allow auctioning for NFTs, reducing its use to mere digital representations. As for Dego Finance, it offers a unique infrastructure with an independent ecosystem where users can trade, mine, issue their own tokenized products.

Dego NFTs have six grades: Bronze, Silver, Gold, Platinum, Diamond, and Kryptonite. Each grade has a specific power value and mining efficiency, with Kryptonite being the most valuable one.

The more mining efficiency an NFT has, the greater the yield earned when staking NFTs to receive DEGO. Power value determines the seven tiers of the NFT.

Users can cast an NFT by combining their ERC-20, BEP-20, and other Non-fungible Tokens to stake in mining pools. These combinations provide great mining power. In other words, a pool can receive an extra injection of 0.1% to 0.15% if it has the greatest combined mining power (meaning, the sum of the staked NFTs). Likewise, the number of tokens in each pool halves every week.

To auction NFTs or sell them directly, users can go to any of the three supported platforms. They include DEGO NFT Market, BSC NFT Market, and Opensea.

Dego plans to give NFTs more features apart from being mere digital representations of unique items. Its team is currently developing Dego NFT, a module that combines gaming and finance by allowing mining, creation, and auctioning of NFTs into GameFi. As stated, tokens deposited during the casting of NFTs are locked but can be later retrieved by decomposing the NFT.

The protocol is still in its development stages. The team is now conducting tests for the dividend system to launch a “V” of its casting module. Several other modules are also in process. Among them are a yield “Hunter” aggregator, a “mystery” Dandy module, Dego Swap, Rewards Pool, Dego Lending, and Dego Insurance.

Dego Finance (DEGO) Pros and Cons

The benefits Dego brings include fast transactions, staking, a fairly distributed reward system, swift payments, security.

While there are no considerable cons at the moment, the community has to wait for the arrival of new features, such as the cross-chain system and the upgrades of its modules to test and review its possible cons.

Conclusion

Dego aims to revolutionize the NFT marketplace by bringing more utility. The platform brings a unique ecosystem for developers who want to create, mine, trade, and auction their tokenized work.