If this title had brought your attention to this post I will like to let you know that this post was made based off curiosity. I’m open to suggestions and information of things I don’t know.
Defi is known to be the acronym of Decentralized (De) Finance (Fi), yeah, obviously, but let’s just put it out there for those newbies who didn’t know what it stood for. Basically, DeFi is meant to eliminate the third party clause in finance thereby leaving just the smart contract and the user. You don’t need an approval from someone, as long as all the required conditions needed for an action are met, then execution becomes the end result.
DeFis have shown to be reliable, it’s something the world needed and now it’s here, time to utilize it because, obviously, we have been deprived a lot. But then, we have DEFIs that are great yield optimizer, DEFIs where you can make lots of money off, if you were an early investor in the Defi space, you should know what am talking about. The APY and APR found in these DEFIs are something worth considering unbelievable, but you wouldn’t know only when you try you will see for yourself.
DEFIs are known to be a liquid providing platform, where people lock in their funds on the blockchain letting the blockchain reward them with the Defi platform’s native token, in the case of the Cake kingdom vault on Cubdefi you get rewarded with Cake tokens for staking Cake and also get rewarded with the native token of cubdefi which is cub and get your Cake autocomounded. When you also provide liquidity on other vaults, you get rewarded in the defi native token. Cubdefi is not the only defi out there, there are lots of other DEFIs out there whose platform rewards stakers and liquidity providers with its native tokens.
We have lots of people staking everyday and new DEFIs are being created almost every month or even week, but my question goes like this. After all the native defi tokens are completely exhausted how do these stakers and liquidity providers get their rewards. For instance, let’s assume that the total supply of a DEFIs native token is 3 Million in supply, and this platform gets lots of investors who provided liquidity and staked their tokens, this means that the token rewards will be distributed more right? So when it gets distributed more, it exhaust the amount t of token in the blockchain used a token reward, what then happens to the DEFI?
Do the Devs be like, we have no more native token rewards in the blockchain to reward our users, what do we do? Or is this an already well thought clause defi Devs must have thought of in the past and already have a solution for it. If this is true, I will like to know in the comment section.