The Altruism Protocol DeFi Ecosystem: Altrucoin and BankerDoge
Table of Contents
Why Not Use Just One Token?
People Who Want Token Loans
People Who Want To Stake Or Lend
People Who Hold Altrucoin
People Who Hold BankerDoge
Ecosystem Operation Example
What we are building has not been done by any other project. That means that as we learn what is necessary for the project to be created we may need to make adjustments to our previous plan and vision. These changes are an excellent example of that.
Altrucoin (AC) and BankerDoge (BD) will exist as 2 interconnected projects. BankerDoge will be the staking system and funds provider for Altrucoin. Altrucoin will be the defi lending platform lending out tokens from the BankerDoge vaults and providing them with increased staking rewards from loan interest.
The Altrucoin project’s scope will expand, gaining an additional long-term use case. Altrucoin will complete its current goals of building DeFi lending for itself and then will expand to become a DeFi lending platform where token loans for any BSC token can be taken out. This will eventually expand further to include other DeFi services as well.
The Altrucoin token will be the primary collateral token of the lending platform. It can be used as collateral for any loan that is taken out, with a discount compared to other collateral such as BUSD or BNB. In the future, fees for the token would be reduced and the price made more stable to make it a more appealing option to use as collateral. Altrucoin will also be the governance token of the Altrucoin project.
An analysis of Altrucoin token benefits is available in the “Use Cases” section.
The BankerDoge project will focus on creating unique staking systems (vaults), token partnerships, and other professional services for token projects. Some vaults will include loaning, and will be used to provide funds that will be loaned out on the Altrucoin Platform in exchange for increased rewards through interest earned by those loans.
The BankerDoge token will be used to enter vaults that choose to use “Hold To Participate” as payment, and will have its price boosted by vaults that use the “Vault Participation Fee”. It will be the governance token for the BankerDoge project and will also be the utility token for future features built by the BankerDoge project.
An analysis of BankerDoge token benefits are available in the “Use Cases” section.
Why not use one token for both systems?
While using a single token system may be technically possible, it likely isn’t optimal. Using two allows us to adjust the tokens features and tokenomics as needed for their respective systems.
What is useful, optimal and profitable for the vault system’s utility token is quite the opposite to what is needed for the lending platform. And meeting the specifications for the primary collateral token of the lending platform is incredibly important.
The lending platform’s primary collateral token needs to be stable and predictable in price and overall volume, with steady growth. It must have high reliability similar to BUSD and BNB if users will be using it as collateral for loans they are taking out. This is especially true if the primary collateral token will require less collateral to be provided for loans.
The vaults system benefits greatly from a volatile, deflationary token with high redistribution and experimental tokenomics (i.e. RoboBoost: auto buy-back and burn). Users buying and selling the token as needed to enter and exit their vaults will create incredible returns through high redistribution and the automatic token burning that takes place.
The different tokenomics between the two projects allow us to tailor the tokens to the specific roles they will fulfill within their projects. Altrucoin being used as collateral would require it to be more stable in order to be appealing to users. While BankerDoge can fluctuate more, with higher rewards and fees while still serving its purpose effectively. This helps differentiate the two tokens as well.
Project Tone and Theme
The Altrucoin project will have a more serious tone/theme, while BankerDoge will have a more fun and experimental tone/theme. We believe the serious theme of Altrucoin will help new users trust the lending system as well. Their tokenomics also reflect these themes, Altrucoin being more stable and reliable, while BankerDoge is more risky and rewarding.
These separate themes allow us to capture different segments of the market that may only be interested in one theme of the other. Thus allowing both projects to benefit from the opposite market audience.
There are 4 types of users use cases in the Altruism Protocol Ecosystem:
- Users who want token loans from the Altrucoin Project
- Users who want to stake/loan for rewards in the BankerDoge Project
- Users who hold Altrucoin
- Users who hold BankerDoge
Users Who Want Token Loans From The Altrucoin Project
Users in this group want to take out a crypto loan for various reasons such as: hedging against crypto fluctuations with more stable/less stable coins, getting temporary fiat at a better price, yield farming or unique functionalities associated with the token they are receiving.
These users will interact only with the Altrucoin application, the Altrucoin token (or chosen collateral token), and the token that they would like to receive as a loan.
Users Who Want To Stake/Loan To Earn Rewards From The BankerDoge Project
The various vault types would allow users to stake their tokens in order to generate an increased return through various methods. Some of these vaults would allow the staked tokens to be loaned out on the Altrucoin platform in exchange for increased rewards.
These users will interact with the BankerDoge vault for the token of their choice. Depending on the vault requirements, they might also need to hold BankerDog.
Users Who Hold Altrucoin
These users have the option to earn rewards in several ways:
- Hold Altrucoin in their wallet, receiving token reflection/redistribution.
- Stake Altrucoin inside a vault on BankerDoge for rewards.
- Price increases from people buying Atrucoin in order to post collateral in the DeFi lending platform.
- Altrucoin’s price and vault rewards will also be increased by token vaults that use the “Vault Participation Fee”.
- Vault APYs will also be increased through interest from paid back loans.
- Altrucoin will also be the utility token for future features in the Altrucoin project.
Users who hold BankerDoge
These users will earn rewards in the following ways:
- Holding BankerDoge in their wallet, receiving token reflection/redistribution.
- Staking their BankerDoge tokens in the staking vault for added rewards.
- BankerDoge price and vault APY will also be increased by rewards from other token vaults.
- BankerDoge price increases from users who are required to buy BankerDoge to enter/exit token vaults.
- Vault APYs will also be increased through interest from paid back loans.
- BankerDoge will also be the utility token for future features in the BankerDoge project.
Ecosystem Operations Example
Alex wants to take out a loan of SafeMoon, because her friend told her that SafeMoon was about to list on an exchange and 5x in a week. Alex goes to the Altrucoin Application to get her loan.
The Altrucoin application allows Alex to either convert other coins to Altrucoin, or to purchase Altrucoin directly from the website with a debit card. She can use $X worth of Altrucoin, or more than $X worth of BUSD as collateral. Alex chooses Altrucoin and receives the loan of SafeMoon.
Backend: The collateral is set aside and not touched, sitting on a smart contract. The BankerDoge application goes to the SafeMoon Lending Vault and withdraws the correct amount of SafeMoon for the loan.
Alex immediately starts paying principal plus interest on the loan through the Altrucoin application.
Backend: The Altrucoin application moves the principal and interest to the BankerDoge application. The smart contract updates the loan info. A small amount of the interest paid goes to the Altrucoin and BankerDoge projects, and the rest goes to the SafeMoon Lending Vault.
Safemoon does 5x in a week, and Alex is rich! At this point, one of two things will happen: she either pays back the entire loan or defaults on the loan.
If she pays it back:
Alex continues to pay back the interest and principal through the Altrucoin application. At the end of the last payment, she gets the collateral back in Altrucoin.
Backend: The remaining principal goes back to the SafeMoon Lending Vault, as does the vast majority of the interest paid. A small amount of the interest paid goes to the Altrucoin and BankerDoge projects. Once the entire loan is paid off, the Altrucoin Application moves the collateral from the smart contract to Alex’s wallet.
If she defaults on the loan:
The Altrucoin application sees that Alex has not paid on time and marks the loan as default.
Backend: The Altrucoin application marks the loan as default and tells the BankerDoge application to convert enough collateral to cover the remaining loan amount. The outstanding value of the loan is converted to SafeMoon from the collateral. The value of the loan, plus the vast majority of interest paid goes to the SafeMoon Lending Vault. A small amount of the interest paid goes to the Altrucoin and BankerDoge projects. Any collateral left over after paying the lending vault goes to the relevant Altrucoin vault.