New Pastry Product: Donut Finance 🍩

Croissant Games
6 min readMay 21, 2022

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Treasury Inflation-Protected (TIP) Bonds & Donut Yield Aggregator (DYA) 💸

Donut Finance 🍩 is a FIRST of its kind platform that functions as a Yield Aggregator and Treasury Inflation-Protected (TIP) Bonds issuer, inspired by the mechanics behind TIPS in the real world. The platform is an original idea created by us, the Croissant Games team. Croissant Games is the currently the #1 Gaming Dapp on Cronos Chain ranked by both user count and volume! 😃😃

Holders of $CROISSANT will be receiving a $DONUT airdrop because why have less pastries when you can have more?

The new platform will seek to sell TIPB that functions as bond products that will generate income for the platform. The income generated from TIP bond sales will be re-invested into the Donut Yield Aggregator (DYA) 🍩 where emissions from staking are used to automatically purchase $DONUT from the open market to be re-distributed as rewards. This creates a feedback loop where prices of DONUT tokens will appreciate over time ceteris paribus. The end goal is to create a series of products that will build huge value for the DONUT token. 👻👻

How does it work? 🐣 🐣

Donut Finance will sell TIP bonds to users, where users have to use $DONUT tokens to purchase. Each TIP bond that is sold to user will expire in 365 days. But in the lifetime of the bond, it will payout a fixed amount every second. The details of the TIP bond ROI will be shown on the frontend. Note that the TIP Bond is a product where excess yields are returned back to bond holders. The platform seeks to increase its yields through yield aggregating and bond sales.

The Donut Finance platform will have a yield aggregator platform that allows users to stake SVN-MMF, HKN-SVN to earn DONUT tokens. When users stake SVN-MMF, HKN-SVN tokens into the yield aggregator, the yield tokens will be used to purchase DONUT tokens that are automatically re-invested into a DONUT single stake vault to yield higher APY. The earnings will be used to buyback DONUT tokens to be redistributed as profits. This results in constant rising price of the DONUT token (say whatt!?)

In short, the Donut Finance platform will function as a platform that sells TIP bonds, while also including our own yield aggregator platform. Donut Finance is started by the Croissant Team and we seek to integrate both platforms as part of our roadmap. 🤖🤖

How does DONUT guarantee the payouts?

💵💵 The DONUT bond brokerage will seek to sell two main types of bonds. DONUT bonds that pays out DONUT (estimated up to 101% ROI, and MUSD bonds that pays out MUSD (estimated 40% ROI). These bonds work hand in hand in a unique game theoretic manner to ensure guaranteed payouts for both token holders.

The unique mechanisms behind DYA allows DONUT to efficiently earn profits that builds up the treasury backing the TIP bonds. There are 2 layers of insurances behind our TIP bonds:

1st — The bonds will be issued out against an algorithm that balances the amount of debt against the income generated. A portion of the excess profits generated from platform profits will be added into an insurance fund that will grow strongly over time. Any excess profits are returned to DONUT tokens.

2nd — The DONUT token acts as a layer of insurance. Should the treasury be in deficit, the treasury will issue out debt against DONUT to generate income to pay back the debt. This is the final measure that will be activated, and is unlikely to happen given the mechanisms involved.

Holding DONUT tokens presents a very small risk of the fact that when MUSD debt goes above what the treasury can payout, the treasury will rebalance its DONUT holdings to payoff the debt. However, DONUT holders are counter-parties to the risks involved, which is why they will be handsomely rewarded for holding DONUT tokens. All and any excess profits generated from sales of MUSD bonds will be used to buyback DONUT tokens, allowing DONUT holders to profit from their holding + purchasing of TIP bonds.

If a user chooses to forfeit their bond because of the need for liquidity, we will take a 1% forfeit fee based on principal + profits. (Algorithm will account for situation where if user has ever claimed MUSD before, it will penalise against the profits, and make sure treasury is always in surplus of 1%).

Donut Deflationary Tax Features

There will be a default 5% sell tax applied. This means that when users sell the $DONUT token, 5% will be taxed, and sent to the $DONUT reward pool and these rewards are issued over time. This means that at the point of selling, the 5% of the amount sold will be removed from the supply immediately and issued over time to other Donut stakers. However, when users buy the $DONUT token or send/transfer tokens; they will not be taxed.

Airdrop for $CROISSANT holders! WALA

Holders of $CROISSANT will be receiving a $DONUT airdrop because why have less pastries when you can have more?

A snapshot will be taken on 30th May and all CROISSANT holders including LP stakers will be receiving 300,000 $DONUT (valued at $300,000).

Airdrop will take place mid June.

With a current marketcap of CROISSANT currently at $370,000, for every dollar of $CROISSANT you hold, you will receive approximately $0.81 in $DONUT since we are airdropping $300,000 USD of $DONUT to all holders of $CROISSANT, including LP stakers. Do note that if you hold $1 of CROISSANT/MMF LP, its considered a $0.50 stake in CROISSANT.

Donutnomics 🍩🍩 and Launchpad on MMF

Total Supply => 10,000,000 $DONUT
DYA Strategy (community) => 2,000,000 $DONUT
Initial Liquidity => 375,000 $DONUT
Launchpad => 1,500,000 $DONUT
Perpetual Bonds => 5,625,000 $DONUT
Team Allocation => 500,000 $DONUT
Airdrop for $CROISSANT holders => 300,000 $DONUT

Perpetual Bonds Sales

💵💵 There will be different tiers of perpetual bonds that are sold. All bonds that are bought will expire in 1 year from the date of purchase. Users can claim their rewards every 12 hours. Fresh bond terms will be re-calibrated every month based on a number of factors such as; DONUT circulating supply, treasury health, token price etc..

/ Perpetual Bonds: 10 Donut -> 0.06 DONUT daily -> 0.6% daily -> 219% APR
/ Term Bond 1: 55 Donut -> 0.57 DONUT daily -> 0.9% daily -> 328.5% APR / Term Bond 2: xxx….

Exact details and numbers for the bonds will be released at launch. These numbers are subject to changes.

Stablecoin Bonds Sale

MUSD stablecoin staking will be launched too on top of our other platform offerings

Earn up to 40% yearly APR 🔥🔥🔥🔥

Users can buy TIP bonds that expire in 365 days. This means that throughout lifetime of a bond this will pay out 40% APR. These MUSD that is received by the team will be placed into the DYA strategies crafted by the DONUT team to earn yields.

In general, a simple view of how it works would be to have a portfolio of products that generate income for those that bought the TIP bonds. For example, the team will allocate 70% to be placed into interest-bearing platforms, and 30% of the USD would be used to purchase MMF-MUSD tokens to be staked for income. A more comprehensive DYA strategy will be launched when the MUSD TIP bond product is launched, the above serves as an example.

Donut Planned Utilities 😈😈

- Donut will be integrated into all games on Croissant Games
- Donut will be used as the payment currency for our VRF solution
- Usage of DONUT to buy NFTs to boost perpetual bond yields

Donut Finance Future Roadmap 🌍🌍

- Covered Call Options: Donut team will work on creating options chain math to allow the DONUT token to be used for covered call options strategies
- Stablecoin perpetual bonds: Low risk staking when you stake stablecoins for mid-low risk APR

Signing off
0xBakerBoy 👨‍🍳

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Croissant Games

The #1 Crypto Casino on Polygon and Cronos Chain. Provably Fair and Transparent On Chain and Off Chain Games.