- Dharma has told that they would be leveraging cTokens to aggregate interest on supported digital currencies such as Dia and USDC with Dharma v2.
- Today, February 7th, Dharma has announced Dharma Tokens (dTokens), a native protocol token created to provide a steady revenue stream for the company.
With the growth in DeFi lending markets, new projects have focused on using strong foundations instead of trying something new. One such organization, Dharma, has told that they would be leveraging cTokens to aggregate interest on supported digital currencies such as Dia and USDC with Dharma v2.
Today, February 7th, Dharma has announced Dharma Tokens (dTokens), a native protocol token created to provide a steady revenue stream for the company.
In a tweet, Dharma commented that
“A Dharma Token (or dToken) is an upgradeable ERC20 token with support for meta-transactions that earns interest with respect to a given stablecoin, and is backed by that stablecoin’s respective Compound cToken.”
The introduction of dTokens is a significant change as the industry is dependent on open-source technology and, as of now, doesn’t charge a service fee. Dharma is showing that charging a service fee isn’t wrong by any means.
An acceptable service fee charged for smart contracts is something that would be common in the future. This announcement from Dharma is something new and unique in the DeFi system, which has been feeless until now.
Dharma has said that its dToken is the primary requirement for completing the future roadmaps. The plans also include enhanced payment privacy and scalable solutions to create a business model that continues to build innovative features. This new model will ultimately bring DeFi into the mainstream market.
Dharma has also specified that this new update is similar to a back-end change, and it will only affect the interest rate earned by the users. A user will maintain his/her balance and the interest rate earned before the migration.
In the coming future, the users will only have dTokens in their Dharma smart wallets along with the dDAI and dUSDC. The currently used cTokens will be stored in a dToken contract.
The dTokens have been deployed on February 4th, and over the next few days, Dharma is planning to upgrade its systems. After a seven day upgrade timelock period, it will convert all the cTokens into dTokens.
A user doesn’t need to take any action to make this conversion. However, a few day’s time is given to the users who don’t want the cTokens to be turned into dTokens so that they could withdraw them.