Defiville — ISLA Tokenomics
What is tokenomics?
If you’re pretty new to crypto you might want to understand what the tokenomics of a project is.
This would help you better understand the project itself and the distribution of the tokens.
You can read this very helpful article to get you started:
Utility or security?
The ISLA token is a utility token and it is being used inside the virtual world of Defiville.
It can be used for voting at governance proposal, being rewarded for providing liquidity or simply helping the community grow and in the near future as an in-game currency.
ISLA has a limited supply of 7M tokens that are fungible and divisible.
Similarly to Bitcoin, it has a deflationary nature, meaning that no more than 7M ISLA will ever exist and for this exact reason token become scarce the more time passes and get distributed.
Also, some might get lost or burned.
The total supply of 7M is distributed as such:
- Season One: 525K
500K for 5LM pools
25K for Commemorative NFT cashback(vested for 3 months)
- Season Two: 1M
400K for UNILP rewards
600K for 4 stablecoins rewards pools
- Community reserves: 1M
- Treasury: 1M
- Founders: 200K
- Uniswap LP: 110K
- Tasks: 1M (used to pay for community tasks)
- Future seasons: 2.175.000
All tokens have been minted on day 1 and the circulating supply was 0 at launch with no premine.
What is the purpose of ISLA?
The main purposes of the ISLA token are to incentivise liquidity providers on the Defiville platform, unlocking exclusive services on Defiville, stake them to receive rewards, as well as getting as many users involved as possible in the governance of the protocol.
How do I get ISLA?
You can receive ISLA by farming in the available pools, providing liquidity to the protocol, completing community tasks or by buying them on Uniswap.
What is the circulating supply?
At the time of writing the circulating supply is just above 600K ISLA but please feel free to search on Coingecko (when available) for the latest data.
What are the Community reserves?
The community reserve fund is governed by the DAO and is used to finance other projects related to Defiville, providing liquidity on Uniswap and to whom will hold the DVART NFTs.
What is the Tasks fund?
The tasks fund is used for paying community members, new hires, bounties or being awarded to community-led initiatives.
What was the initial price of ISLA?
The Uniswap liquidity pool has been kickstarted using 6 ETH and 110K ISLA bringing the initial price of 1 ISLA to $0.10
Where I can see more details about the current liquidity, volume and price?
Season Two will have 4 stablecoins farming pools and 1 LP as follow:
DAI Pool — Strategy from IDLE — Rewards 150K ISLA
USDC Pool — Strategy from IDLE — Rewards 150K ISLA
USDT Pool — Strategy from IDLE — Rewards 150K ISLA
EURS Pool — Strategy from Stake DAO — Rewards 150K ISLA
Uniswap ISLA/ETH LP — Rewards 400K ISLA
How are the rewards distributed?
For every $1 in stablecoin generated, 1 ISLA is distributed among the contributors.
The pool terminates when it reaches $150K in interest generated and all the ISLA in the pool have been distributed.
The entire season ends when all 4 pools are empty and have reached the hardcap of $150K in stablecoin generated.
How do I get my rewards?
When unstaking from the stablecoins pools you’ll have 3 options.
Option1: If you withdraw using this option you will receive your initial stablecoin collateral and all the ISLA that you have farmed but no stablecoin interests.
(Example: you have deposited 100 DAI and earned 10 ISLA and 10 DAI, by using this option you will receive 100DAI and 10ISLA as rewards, while 10DAI will be locked in the contract)
Option 2: If you withdraw using this option you will receive your initial stablecoin collateral, 50% of the ISLA that you have farmed and 50% of the interest earned.
(Example: you have deposited 100 DAI and earned 10 ISLA and 10 DAI, by using this option you will receive 100DAI, 5 ISLA as rewards and 5DAI, while 5 DAI will be locked in the contract)
Option 3: If you withdraw using this option you will receive your initial stablecoin collateral and all the stablecoin interest earned but no ISLA.
(Example: you have deposited 100 DAI and earned 10 ISLA and 10 DAI, by using this option you will receive 100DAI and 10DAI but no ISLA rewards)
— The goal of Season Two is to empty the pools from ISLA and fill them with stablecoins.
What happens to the stablecoins generated by the interest?
If you decide to use Option 1 or 2 when you withdraw, the stablecoins will be held in the contract and used to “feed” the souls of the animals on the island(smart contract) which will be re-invested in another stablecoin strategy to generate more interests and distributed to the holders of the ISLA token.