Deposit

Liquidity Providers (LPs) deposit USDC into the Domination Finance vault and receive $dfUSDC tokens in return. $dfUSDC tokens are ERC-4626 tokens representing the LP’s share of the vault.

Fees and rewards are directly accrued to the $dfUSDC tokens, which means $dfUSDC will fluctuate in value. The current $dfUSDC/USDC rate can be seen on the Domination Finance UI.

Locking Deposits

LPs also have the ability to lock their deposit for as little as 7 days all the way up to 365 days. A reward multiplier is applied for locking in the form of a discount on $dfUSDC price upon depositing. This is displayed on the UI as the Lock Boost. The lock boost will vary based on the duration of the lock and the collateralization percentage of the vault when depositing.

Locked deposits are represented as ERC-721 tokens or NFTs. The NFT can be redeemed at the unlock date for the corresponding amount of $dfUSDC tokens (initial deposit + lock boost).