The Diamond Hand product is an experimental innovation aimed at expanding the ecosystem. In brief, DiamondHand (DH) is a product for creating decentralized synthetic tokens pegged to cryptocurrencies like BTC, ETH, BNB, ADA, DOT, LINK and others by using the partial-collateralized design concept which was proven to work admirably well with the IRON stablecoin.
Diamond (DND) is the native token of DH that accrues seigniorage revenue and excess collateral value
Synthetic tokens (dTokens) are tokens pegged to the price of actual cryptocurrencies like BTC, ETH, BNB, ADA, DOT, LINK and others
As the IRON protocol grows stronger, the main objective of DH is to popularize the usage of the IRON stable coin. While stablecoins have already proven their use in DeFi and broader, most synthetic assets are still in experimental phases and the market is totally underdeveloped.
The supply of major cryptocurrencies like BTC, ETH, BNB, ADA, DOT on the Binance Smart Chain is very limited as it most often requires several steps to transfer them. With DH we introduce a decentralized solution to scale up volume of these popular coins by using our partial collateralized design where synthetic token supply will be partially backed by other liquid tokens and partially by the DND token.
Each synthetic token will have a test period incentivized by liquidity mining pools. If the adoption of a particular dToken is promising, we will make plans to extend the mining pool. If the adoption is low, we will close the pool and not extend the DND liquidity program for that particular dToken.
IRON protocol benefits from DiamondHand
There will be a liquidity mining program where STEEL holders can participate and earn DND tokens.
10% of DND supply (1,000 DND in total) will be used as another income stream for IRON protocol by exchanging DND to collateral (BUSD) and depositing to IRON’s Minting pool. This 10% of DND supply will be vested over 2 years (read more in the next section)
Increased liquidity for both STEEL and IRON tokens
