What is DAVOS Protocol?

What is Davos?

Davos is a DeFi ecosystem that allows its users to easily borrow "DAVOS Stable Assets" by using their crypto asset to over-collateralize. In addition, users can earn by depositing their crypto assets on the Davos DEX, plus receive an equivalent derivative token when depositing which makes them stay liquid. 

Davos Protocol consists of a dual token model which are DAVOS and DGT.

The platform strives to provide stability and sustainability to its users which is also worth mentioning that it has been audited by 'Quantstamp' and 'Veridise'. 

How Does Davos Protocol Work?

The Davos protocol is relatively easy to navigate and provides different features. Users can borrow or earn using their crypto assets. 

• Borrow

Users can deposit PoS (Proof-of-stake) tokens as collateral to borrow DAVOS Stable Assets. The PoS tokens can be Ethereum (ETH), Polygon (MATIC) or Avalanche (AVAX).

• Davos DEX

1. Users can also choose Davos-Token pair and deposit onto the platform. 

2. Davos Protocol runs diverse low-risk strategies to generate yield from the collateralized assets and redistribute it to DAVOS stakers and DEX liquidity providers.

3. Then receive earnings up to 9% APY 

Closing Thoughts

In my opinion, Davos protocol has a very good potential to be right up there with the other great platforms but there is still a good amount of work to be done. According to the whitepaper, It has created a simple and sustainable way to generate a yield for its users which I find very awesome in these highly volatile times. I would also like to add that the platform's interface is really user-friendly as compared to some other platforms. All in all, I think Davos is worth checking out or at least going through the interview Varun Satyam (CEO and Co-founder of Davos Protocol) had with newsbtc.com.

So what are your thoughts on Davos Protocol?...... Let me know in the comment section.

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Disclaimer

I am not a financial advisor. The information found here are for educational purposes and cite my personal opinion.