Root Farm Strategy
Last updated
Last updated
This section of the documentation provides a technical guide on utilising the $DXP Root Farm within the Dexponent Protocol, a core feature that channels a significant portion of the platform’s revenue streams and enables governance participation. Here, you’ll get to know about how to stake your $DXP tokens to acquire $vDXP tokens, unlocking revenue sharing benefits and governance capabilities. The instructions will walk you through engaging with the Root Farm’s architecture, which integrates yield generation and an active market making strategy, supported by a dynamic price floor to maintain $DXP token stability.
The steps for employing the Root Farm's advanced market making strategy on DEXs for the $DXP/USDC trading pair. You’ll learn how to apply a dynamic price floor instead of relying on a fixed price anchor. This floor is calculated using a combination of financial metrics TVL, projected protocol revenue, and additional data driven indicators from traditional financial analysis. To apply this, you’ll use the provided tools to compute the price floor, ensuring the $DXP token price stays above its core value. This setup helps you protect the token from steep drops while allowing natural market swings. Follow the instructions here to configure and manage this mechanism effectively within the DEX environment.
The Root Farm functions as the central hub for revenue consolidation within the Dexponent ecosystem. It systematically aggregates income derived from multiple sources, including trading fees, protocol fees, and penalties such as slash fees.
To Use It:
Connect your wallet to access the Root Farm dashboard.
Check your eligible rewards based on your protocol activity or stake.
Claim your share directly through the interface or contract functions.
The Root Farm ensures revenue flows back to active participants. Engage with it regularly to stay aligned with the protocol’s incentives.
$vDXP serves as your voting power within the ecosystem and is used to participate in governance decisions. By holding $vDXP, you can propose, discuss, and vote on protocol upgrades, parameter changes, and other key matters affecting the future direction of Dexponent.
This staking model is designed to enforce decentralized decision-making and grow shared ownership of the protocol.
To Begin Staking:
Navigate to the Dexponent strategy dashboard.
Connect your wallet.
Select the amount of $DXP you wish to stake.
Confirm the transaction in your wallet.
Upon confirmation, your wallet will reflect the corresponding $vDXP balance.
The Root Farm utilises a structured yield distribution mechanism, wherein captured revenue is allocated to stakeholders based on a predefined distribution schema. This schema ensures equitable distribution across liquidity providers, verifiers, and the protocol treasury. The process is designed for effectiveness, minimizing operational overhead and long term viability of the yield distribution system.
Price Floor Implementation To benefit from the Price Floor mechanism, simply hold or trade $DXP as usual, there's no extra step required. The system automatically adjusts the minimum price based on key financial metrics, ensuring $DXP maintains a minimum value. This protects your assets from sharp price drops while still allowing market movement, giving you more stability and confidence in every transaction.
Decentralised Governance Framework By staking your $DXP tokens, you receive $vDXP, which gives you the power to participate in governance decisions. This means you can vote on important proposals and help shape the future of the protocol. It’s a transparent and community driven way to ensure the ecosystem evolves with input from stakeholders.
Smart Yield Allocation Smart Yield Allocation ensures your earnings are distributed quickly and fairly. Once you're part of the Root Farm, the system automatically handles revenue sharing among stakeholders. This smooth and efficient process helps support long term growth and stability across the Dexponent Protocol, so you can focus on farming while the protocol takes care of the rest.
