Over the years, we have witnessed many DeFi projects enter the market with ambitious promises. Each team has brought new ideas and approaches to the table, leading to the rapid growth of the industry.
The latest contender to join this world is CAGA Crypto – a platform aiming to transform DeFi from its community. Today, we’ll look into all of CAGA Crypto’s features, designed to bring a new transformation to the DeFi ecosystem.
What Is CAGA Crypto?
CAGA Crypto is a new player in the DeFi field, deeply rooted in community values. Its operation hinges on a decentralized autonomous organization (DAO) model. This feature gives community members a vital role in steering the company’s direction through the CAGA token.
The community-centric nature of CAGA Crypto is at the core of this new project. With a 100% community-led decision-making process, the platform can evolve according to the will of its users. The dedicated CAGA token also enables users to participate fully in governance and earn rewards through its liquid staking system.
Transparency is key for CAGA Crypto, as seen in their approach to treasury management. By promoting trust and engagement within the community, they aim to build a strong foundation for growth and success. And with anonymous decision-making at its core, each member has an equal say in shaping the platform’s future.
What Does CAGA Crypto Bring to the Crypto Community?
CAGA Crypto wants to bring a fresh perspective to the crypto industry with its community-driven approach. The platform allows token holders to propose and execute ideas, creating an environment of shared opportunities. The blockchain system ensures an environment of trust through transparency. These unique features not only respect but also protect the community’s interests.
Stakeholder benefits include shared earnings from projects, with the importance of the Treasury and a vote-based distribution system. This feature serves as a testament to the DAO’s commitment to its stakeholders.
The CAGA smart contract has undergone auditing by top auditors, underscoring its pledge towards secure transactions.
Lastly, CAGA safeguards its community with fair voting power, preventing manipulative practices that could otherwise skew the system. This way, the team intends to preserve the integrity of community decisions.
CAGA Crypto’s Tokenomics
In the CAGA Crypto DAO, token distribution follows a strategic structure. The largest segment, 79%, serves as a liquidity pool. Another 8% of tokens will help the team provide liquidity on CEX platforms.
Staking rewards, a.k.a “emissions,” account for 6% of tokens. Another 5% will be part of the project’s so-called “Treasury,” with the remaining 2% dedicated to governance management.
The Treasury is a key component of this newborn project, as it will support community growth and benefits. It sources returns from an assortment of projects and partnerships. The Treasury’s portfolio includes investments in emerging projects and collaborations with other protocols. It even contemplates acquisitions within the growing Web3 universe.
The decision-making process involves the community, ensuring choices contribute to long-term growth and enduring success. The liquidity pool holds a significant portion of circulating tokens. Furthermore, to maintain fairness, the team will burn LP tokens, preventing future extraction by governors.
Fees collected from various projects fuel the Treasury’s growth. These include loan fees, governance proposal fees, and protocol fees. Moreover, returns from community-approved investments further foster growth. These investments span staking projects, Mega Pool, and Swap Pool – DEX, among others. CAGA’s involvement in various projects may also lead to holding other tokens.
The Importance of Staking and Anonymous Voting in CAGA Crypto’s Ecosystem
Staking in CAGA’s ecosystem offers unique advantages. By staking tokens, you earn Liquid Staking Tokens. Plus, daily rewards are yours to claim. Staking CAGA tokens also empowers you with voting rights.
In the following subsections, we’ll delve deeper into these benefits. Specifically, we’ll explore each of them to give you a clearer picture of the value they bring.
#1 Obtaining Liquid Staking Tokens
To obtain liquid staking tokens, you stake either CAGA or ETH. In return, you receive an equivalent amount of cgCAGA or cgETH. These tokens hold a 1:1 value ratio, and you may trade them on secondary markets. Remember: if you trade your liquid staking tokens away, the accumulation of voting power and rewards for that portion ceases.
Currently, CAGA DAO supports staking both Ethereum and CAGA Tokens. As an active participant in the CAGA Crypto ecosystem, staking allows you to earn rewards. You will also have the right to propose the next tokens to include in the dApps.
Remember, the staking APR depends on the actual annual provision’s ratio to the annual provision multiplied by the nominal APR. The rewards you receive from staking vary based on the amount and the asset you’ve staked. Furthermore, consider that a 10% fee applies when withdrawing your rewards. In this case, the tax receipts will go to CAGA DAO’s Treasury for further development.
#2 Collecting Rewards
The second benefit we should mention is the possibility to collect rewards even if you didn’t start the staking process. This applies to all users who hold cgCAGA tokens and connect their wallet to CAGA dApps.
Rewards come directly from the Treasury, and all eligible token holders have the right to collect these tokens. How does it work? In short, the more cgCAGA tokens you own, the higher your share of earnings will be.
Liquid staking uses cgCAGA tokens to track eligible addresses and amounts during community votes or distributions from the Treasury. Suppose, for instance, that you trade cgCAGA tokens with other users. In that case, your reward-generating rights may change according to the number of tokens you hold.
If you sell your tokens to another user, they will start generating rewards. In this case, you won’t generate any rewards unless you buy back some or stake CAGA from this point on.
#3 Anonymous Voting
Last but not least, let’s underscore the significance of voting power (VP) within a decentralized autonomous organization like CAGA. The VP mechanism offers several benefits, such as preventing wash voting.
This ensures that only serious stakeholders who genuinely believe in the project can influence the direction of the DAO through their votes, as they are required to stake their CAGA holdings to generate VP.
This approach serves to deter irresponsible or ill-intentioned voting, as well as introduces a ‘time’ cost for voting by expending VP. With no VIP treatment, every member’s vote carries weight, and its influence depends on their staked tokens. This system guarantees that decisions are based on the merit of each initiative, free from personal bias or undue influence.
Furthermore, anonymous voting not only safeguards members’ privacy but also fosters transparency within the community.
It creates an environment conducive to more honest and open discussions without the fear of judgment or repercussions. By allowing all members to vote anonymously, CAGA establishes a fair and inclusive decision-making process that benefits all stakeholders.
If you join the CAGA community, you will find four categories of governance:
- Governance & Financial Strategy
- Governance & Operation
- Technical Development & Compliance
- Community Development & Security.
All proposals must go through a four-step process, including VP, proposal creation, voting period, and voting quorum. This ensures that only genuine and well-intentioned proposals with strong community support will pass.
What Is Next for CAGA Crypto?
CAGA’s journey will begin soon, with the launch of Liquid Staking in November. This phase allows stakeholders to earn daily rewards. Additionally, the governance system described above comes into play, facilitating democratic decision-making.
The journey continues to the first quarter of 2024, marking the second phase. This includes the introduction of the Swap Pool, a novel concept for a Liquid Staking Token DEX. The alternative is the MEGA Pool, offering a margin loan of up to 5x for liquid staking token collateral.
The third phase is a testament to the dynamic future of CAGA. It could involve another CAGA initiative, a potential merger or acquisition, or collaboration with other parties in the Web3 space. Importantly, the direction will follow the community’s proposals and ideas, giving them a voice in shaping CAGA’s future.
Final Thoughts – A New Player in the DeFi World
CAGA Crypto is carving its unique path in the DeFi world. It’s a journey bolstered by community involvement and relentless innovation. With its community-centered staking and governance systems, CAGA presents an ecosystem that’s fair, transparent, and rewarding.
To stay in the loop with CAGA’s developments, you can follow their website and the social pages below.