DarumaDAO

What is DarumaDAO?

DarumaDAO is the first decentralized reserve currency protocol built on the Nervos blockchain, inspired by OlympusDAO. We aim to bring the innovative DeFi money design to the most promising blockchain networks.

How does it work?

The core product of DarumaDAO is $DRM, an algorithms-aided stable currency. Each $DRM is backed by a basket of assets in the treasury, which gives it a floor value that it can not fall below. $DRM is an interest-bearing asset, meaning the balance of DRM will grow in time, so does its value as the treasury guarantees the intrinsic value. 

To mint $DRM, users who hold a treasury accepted token will commit their tokens and receive a discounted amount of $DRM in exchange. This works like the most common bond, and these bonds pay periodic (8 hours) returns and mature at a specific window (5 days). The returns can be additionally used to stake and earn the inflation rewards in compounding.

The treasury will be further used to capture yields and increase the $DRM token’s underlying value. The first assets in the treasury are USDC and CKB. By initially focusing on stablecoins and the native token on the network, the protocol can balance out the risks and potentially attract the most capital at launch. The flexibility of the Daruma Protocol means that almost any kind of asset that can be tokenized on the Nervos network can be accepted as treasury assets. We are working with the Cardano ecosystem to make ADA available as the strategic treasury asset.