Today’s update marks a significant shift in DK’s revenue-generating procedures.
Over the past two days, the crypto space experienced extreme volatility, with ETH dropping to $1,833, its lowest value since 2023. As volatility equates to profit for DK, today’s buy and burn operation was the largest to date—over three times bigger than the second-largest burn.
A total of 87,238 DKDeFi tokens were purchased and burned, bringing the total number of burned DKDeFi tokens to 267,643.
Additionally, an estimated 100,000 tokens have been permanently locked into high-yielding, compounding liquidity pools. These pools are now held by DK along with $150 worth of top blue-chip tokens on the Fraxtal network.
Altogether, approximately 0.38% of the total DKDeFi token supply has been burned or permanently locked. This equates to around $600 in tokens contributed by DK and StarSeeds Liquidity Protocol toward growing the DKDeFi ecosystem.
It has only been 16 days since DK was deployed, and we are just beginning to build momentum and develop revenue-generating automation for DK.
**Important Procedural Shift**
We are transitioning DK’s liquidity pool (LP) farming systems from Fraxtal to Polygon. This decision was made after exhausting all efforts to increase LP revenues on the Fraxtal network. Unfortunately, LP yields on Fraxtal are less than 25% of the yields on Polygon, and no immediate solutions exist to improve this.
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Here are the key reasons Fraxtal network LP farming yields are significantly lower than the Bluechip EVM standard:
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Isolated Ecosystem: Fraxtal operates mostly as an isolated network. Only a few tokens can be bridged in and out quickly, with others requiring up to 7 days. This isolation reduces token value volatility and LP swap fees by more than 99%.
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Limited Token Options: The network only offers five major tokens, with just two of them being automatically traded. This severely limits potential value divergence periods for LP farming.
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Low Volume: Fraxtal’s trading volume is less than one-thousandth of that seen on leading networks.
As a result, DK will migrate LP farming operations to Polygon. Revenues generated will continue to support DKDEFI token buy-and-burn operations and locked liquidity. In the near future, DKDEFI tokens will also be bridgeable between Polygon and Fraxtal.
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Additional Updates
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Borrowing Alert: DKDeFi token holders borrowing via the DKDeFi-IQ pool should check their positions. The pool is nearing maximum capacity, leading to routine micro-liquidations. Borrowing rates currently range between 200–1200% APR.
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Lending Opportunities: Yield rates for lending DKDeFi-IQ tokens on BAMM are currently between 95–126% APR.
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Token Value: DKDeFi tokens have reached $0.00129—their highest value since a whale liquidated several million tokens at the peak.
