CHEDDA is the native utility token on the platform.
Each token represents a unit of ownership and provides the holders with various benefits.. Users get various benefits from holding the token.
CHEDDA token holders receive the following benefits from holding the token.
- 1.Stake tokens for portion of platform fees.
- 2.Stake rewards from new token emission.
- 3.Stake LP token for further staking rewards.
- 4.Governance: Voting on token emission distribution and other protocol governance decisions (VE Model).
In addition to these token benefits, during the early stages of the protocol, liquidity providers will be able to deposit their LP tokens and receive additional tokens.
CHEDDA token supply is inflationary in the short term, but ultimately deflationary within 7 years from token launch.
CHEDDA Emission Rate
The emission rate for new tokens is defined by the equation:
is the token emission rate per year and
is the number of years since token launch.
The exact numbers for token initial and maximum supply will be released prior to token launch.
CHEDDA token holders will be able to stake to earn staking rewards. Token holders who deposit CHEDDA receive xCHEDDA (staked CHEDDA), which is transferrable, thus composable with other DeFi protocols.
The maximum token emission rate will be governed by above schedule. The staking rewards will be determined by market factors and rebase frequently to ensure optimal rewards for stakers.
xCHEDDA or staked CHEDDA is an ERC-4626 token that represents a share of ownership in the CHEDDA staking pool. xCHEDDA is minted when a new staking position is opened as a CHEDDA holder stakes their tokens, and burned when the staking position is closed as the holder unstakes the tokens.
The veCHEDDA or voting escrowed CHEDDA token is the measure of an accounts voting power on the platform. veCHEDDA is created when users lock their xCHEDDA for a fixed period of time between 1 week and 3 years. Voting power increases linearly based on the locked amount and the lock time.
A ch token is a Chedda debt token the accounts for the amount of debt an account has in a lending pool. chTokens are non-transferrable.