What are the differences from normal Boardroom?

  • Fortress is the place to mint peg token ($SWD) based on its TWAP value and circulating supply.
  • Users stake funds ($SHD) into Fortress and earn rewards
  • The difference is that normal Boardroom distribute single peg token directly to its stakers while Fortress distribute CL (Peg LP - ROI contract) token to its stakers by a smart contract.

What are the advantages of Fortress model?

Normal Tomb fork projects don’t last long. They can do their great jobs in Bull market or for a few weeks/months from launch. Then they lose peg and hardly recover. Without innovation, we definitely will end up the same way.
Maintaining peg value is the most prioritied work of any Tomb fork model. Defender Finance is giving a solution by seting up an innovative Boardroom with:
  • Dynamic Boardroom expansion/contraction phase
  • Dynamic Expansion rate
  • CITADEL (ROI contract) token rewards
In defi space, especially Tomb fork projects, most of the experienced investors can make money, most of the un-experienced and other investors who do not have time to take care of their investments frequently are losing money. Fortress model will ensure the rewards to be distributed among investors based on their share of investment. No one will be the first dumper and no one will be the last dumper.

How does Fortress model work

  • Fortress will print new peg tokens at when TWAP>=TWAP0
  • 100% of the newly minted peg tokens go to DAO/POL
  • DAO/POL will sell a suitable number of peg tokens in the open market (max 50% of the total balance in DAO/POL)
  • Single hard assets will be paired with peg tokens in Treasury to create hard asset LP
  • A part of hard asset LP going to DAO/POL will be used as Ptotocol Owned Liquidty (10% POL) and buy back when peg token under-peg (10% DAO). Buyback will be after 1 epoch when TWAP<TWAP0 (twap config). It will not instantly bring above peg but buys slowly over time.
  • The remaining part of hard assets LP will be used to purchase Citadel - CL token then distributed to FORTRESS stakers/Dev fund
DAO fund
Buyback when under-peg
POL fund
Protocol owned liquidity
CL rewards
Purchase CL token and distributed to FORTRESS stakers/Dev fund

How should we use Fortress rewards to benefit the investors and the protocol in long term?

  • CL rewards from Fortress is the way of taking profit that does not create hug sell pressure on the protocol peg
  • Everyday user can manual claim normal LP from CITADEL.
If you are familiar with ROI contract, We suggest:
a 2-5 strategy: 2 day take profit and 5 days compound
or a 1-6 strategy: 1 day take profit and 6 days compound
  • If you are familiar with ROI contract and want to invest into ROI contract only: 2-5 (or 1-6) strategy mean you claim rewards from ROI contract every 2 days and compound every 5 days or claim rewards every 1 days and compound every 6 days for 1 week routine. The more frequently you compound your rewards, the faster you will gain your 365% ROI of initial investment.
If you are NOT familiar with ROI contract, We suggest a 25%-75% strategy: 25% take profit and 75% re-invest
  • If you are NOT familiar with ROI contract and/or you want to invest into DEPOT to earn more $SHD rewards: On every claimed reward (in normal LP), you can take profit up to 25% and you can stake 75% into DEPOT to earn more $SHD rewards. Then you can take profit on $SHD rewards or stake $SHD rewards into Fortress to earn more CL rewards.

Dynamic Expansion and Contraction Phase

  • Treasury Phase is defined as follows with TWAP0 is the TWAP config.
  • TWAP0 is dynamic and adjustable from 0.8 to 1.1
Treasury Phase
Last Epoch TWAP
Contraction phase: Treasury will not mint any $SWD

Dynamic Epoch Expansion Rate

  • Expansion Phase: Epoch expansion cap is based on $SWD current circulating supply, TWAP value and Ciculating supply ratio:
Epoch expansion = Circulating supply * Epoch expansion rate * Circulating Supply ratio
+ Epoch expansion rate = (TWAP value)/100
+ Circulating supply ratio:
Circulating supply
Circulating supply ratio
Less than 50
50 to 200
200 to 500
Above 500