Catalyst
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Tokenomics
As the protocol develops and we are closer to launch these tokenomics are subject to change
Catalyst will pre-mine 50% of the token supply, this share will be allocated into a nearly equal split between Team/Investors/Community. The remaining 50% supply will be used as rewards for providing liquidity to the protocol with a 2% weekly decay rate until reaching 2.5% terminal inflation in about 5 years. Heavily incentivizing all 3 parties to be early liquidity providers and to maintain their stake in the protocol.
The Lyst token is Catalyst's governance token. Currently, it will be staked to vote on active polls and is required as a deposit for making new governance polls. Fees generated from the protocol will be used to burn Lyst tokens.
Users that stake Lyst tokens also earn Lyst rewards generated from withdrawing collateral from CDP positions within the protocol.

Catalyst's Token Supply

Currently, we are planning to have ~300,000,000 tokens be distributed over 5 years with terminal inflation of 2.5% starting after year 5.

Distribution Schedule(in millions)

Allocation
Percent
Genesis
Y1
Y2
Y3
Y4
Y5
Pre-Sale
6.66 %
20
-
-
-
-
-
Private Sale
10 %
30
-
-
-
-
-
Public Sale
10 %
30
-
-
-
-
-
Marketing
3.33 %
10
-
-
-
-
-
Advisors
3.33 %
10
-
-
-
-
-
Team
16.66 %
50
-
-
-
-
-
Lyst LP Rewards
27.27 %
-
41
20
10
5
2.5
cAsset LP Rewards
13.65 %
-
20
10
5
2.5
1.3
Lyst Pool Rewards
9.0 %
-
14
7
3.5
1.8
0.9
Total Supply
-
150 M
225 M
262 M
282 M
290 M
295 M

Genesis Token Distribution

A total of 150M tokens will be pre-mined for a nearly equal split between the Team/Community/Private Investors. These genesis tokens will be 50% of the total supply of Lyst and will create an incentive for each of the 3 parties to hold for the remaining token supply reward.

Team Vesting

The Catalyst team on launch will have 16.66% of the total supply of Lyst tokens, an amount equivalent to what the community and private investors will hold. These tokens will be locked providing liquidity to the protocol and earning liquidity pool rewards. They will be released to the team on a time and goal-based incentive plan. This incentive plan will go as such but is again open to modifications based on investors and community input.
Allocation
V1.0
Y1
Y2
Y3
Y4
Y5
Tokens Unlocked
10%
18%
18%
18%
18%
18%
Tokens will be unlocked on a weekly basis to prevent supply shock when unlocking tokens.

Liquidity Pool Rewards

~150M tokens will be allocated as rewards for providing liquidity to the protocol. To incentivize early liquidity providers the protocol will distribute 50% of the allocated supply within the first year and each subsequent year will halve until reaching 2.5% terminal inflation. Inflation will drop by ~2% weekly providing extra incentive for early liquidity providers.

Final Token Distribution

Hybrid Burning Mechanism

Lyst tokens will be bought and burned in several ways with more methods added as features are added to the protocol.

CDP Fees

The Catalyst protocol fee is charged whenever a CDP is opened or closed, these fees will be used to purchase and burn Lyst tokens.

Yield Farming Fees

Deposit fees will be charged when providing liquidity to the protocol

Interest on Locked Collateral

Interest earned from locked collateral will be used to purchase and burn Lyst tokens
Last modified 4mo ago