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coreDAO is the governance token of the CORE ecosystem. It combines a multitude of functions for its holders, including farming, governance and lending. |
coreDAO tokens can be staked in the vault in order to farm CORE. Each CORE traded incurs a Fee-of-Transfer (FoT) of 1% that is transferred to coreDAO staked in the CORE vault. The staking contracts are built intelligently to save gas and every time coreDAO is unstaked you claim your rewards automatically.
CORE Finance aims to become a self-sustaining project with an emphasis on decentralization and community thus coreDAO holders can participate in on-chain votes on platform decisions. They can vote on CORE Improvement Proposals (CIP) and direct the future of the platform. On the other hand, users that have active loans in coreDAO cannot participate in governance.
Initially, locked liquidity was gathered through Liquidity Generation Events (LGEs) that minted LP tokens composed of CORE paired with ETH, BTC, and DAI. This liquidity was eventually converted into DAI and CORE pairs to form coreDAO. This conversion along with locked liquidity allows coreDAO to have a loan value in DAI just like with CORE.
Normally, LP tokens provide liquidity which can be removed at any time. Tokens like coreDAO are much more than that because they validate locked liquidity that cannot be removed and at the same time are rewarded with farming, lending and governance.
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