Key Concepts and Stakeholders

In the Dexponent protocol, several key stakeholders work together to create a decentralised benchmarked yield market. With our protocol, we aim to enhance user experience and add value to the key stakeholders in the Dexponent Network, outlined below:

Liquidity Providers Liquidity providers(LPs) are investors, retail or institutional, who provide liquidity to the protocol to get fixed returns on their principal(Usually they have the largest component). These providers can lock their assets (eg., ETH, Stablecoins) into the protocol which are then used to generate yield through various DeFi strategies. LPs will have the largest component of reward. Subnet A subnet is a group of yield miners and validators focused on a specific yield generation strategy, usually rewarded on a singular token. Ownership is determined by staked $DXP tokens. There is a limited number of subnets allowed on our platform, and they are ranked based on their performance. This ranking maintains high standards among subnets. The subnet structure is designed to allow for specialization within the protocol, with each subnet focusing on a particular yield strategy(e.g., staking, lending, liquidity pools etc.) The subnet is also responsible for setting the fee structure, reward distribution ratio, and other operational parameters, ensuring effective management of resources and incentives.

Yield Miners A yield generating unit within the protocol responsible for generating yield through on chain yield strategy. For example, in staking strategy on Ethereum, a node operator who locks 32 ETH and generates staking rewards would be considered a yield miner. Other examples of yield miners include re-staking, Automated Market Maker(AMM) LPs, Derivatives LPs, Collateralised Debt Obligations(CDOs), etc. Yield miners earn yield while providing this LP’s liquidity to the DeFi ecosystem. Yield miners receive fees based on yield reward and decided by subnets. Yield validators closely monitor them and rank their performance. Yield validators evaluate how well different strategies are working within the protocol. This ranking encourages yield miners to improve their strategies to maximize their yields. Yield Validators These entities play an important role in the ecosystem by distribution of liquidity to the Yield Miners based on a miner’s weightage and ranking. Validators verify the yield generated and also benchmark the yields, and also monitor the risk exposure and reliability of yield miners to ensure the distribution of rewards to LPs using the help of “Proof of Reward” models. Validators use the POR mechanism to verify that yields are accurately benchmarked and distributed fairly to the yield miners, with transparent verification mechanisms.