Dogebonk is a community-oriented decentralized finance (DeFi) project built on the Binance Smart Chain (BSC). Binance Smart Chain is a blockchain network designed to run smart contract–based applications. Also, the Dogebonk platform combines memes with utility. Meme tokens are cryptocurrencies inspired by memes or jokes on the internet.
As per the whitepaper, Dogebonk is a memetic concept of deriving value in the form of a $DOBO token (the native token of the platform). DOBO is entirely a community-driven public token created to give value to its users. The project rewards all its token holders to meme their tokens into the collective consciousness.
Furthermore, Dogebonk has a collection of memes created by the community members on its website. Also, the platform allows for simple JPEG edits of already-existing memes. The community is continuously engaged in designing new memes on the platform and marketing the project.
Dogebonk is an automatic liquidity-providing protocol that offers static rewards to token holders. The concept of static rewards aims to solve the problems associated with mining rewards, where early adopters generally have more tokens than new traders. They only tend to earn the staking rewards because of more tokens.
Moreover, the reward amount in the static reward system depends upon the volume of tokens traded. The main goal is to minimize downward sell pressure put on the token by the early adopters when they sell their tokens. This is done to incentivize the holding of tokens and discourage swing trading.
The platform employs two simple functions to pay rewards to the users. The two functions are reflection and liquidity pool acquisition. The reflection feature encourages users to hold the tokens to earn high rewards based on the total number of tokens owned.
On the other hand, liquidity pool acquisition is the feature that offers long-term stability on the platform. This is done by charging an amount as tax for trading tokens. For each transaction on the platform, the smart contract charges a 10% fee. The fee acts as a resistance mechanism and secures the volume of native tokens as a reward for the holders. The fee is split in two ways. 5% is redistributed among the existing token holders and reflected as static rewards in their accounts to encourage continuous holding. The remaining 5% is added to the liquidity pool to reduce volatility over time. As the liquidity pool increases, it strengthens the token's price stability.
Hence, static rewards help mainly in two ways: they enrich the token holders and reduce the supply of tokens to maintain their value.
The liquidity pools at Dogebonk are permanently locked and are not available for the developers. This was done by sending all LP tokens to the burn address. The pool only remains intact to provide liquidity on the platform. Moreover, the team renounced ownership of the contract to prevent manipulation of the tax fees on the Dogebonk platform.
DOBO is a deflationary token. Deflationary tokens reduce in supply with time. The team intentionally participates in activities that reduce the token's supply. The most common way to do that is by coin burning. Cryptocurrency burning is when a fraction of tokens are sent to a wallet with no private key. This means the tokens are lost forever. Tokens are usually burned to reduce availability and increase the token's market value.
After an initial burning of 30% of the tokens, the current burn wallet at Dogebonk is still burning small amounts of DOBO tokens. This mechanism gradually increases the value of tokens held by the users.
To get DOBO tokens, users need to connect a BSC wallet and swap BNB tokens for DOBO. Traders can also get DOBO tokens by connecting their Trust wallet or MetaMask wallet.
Solidity Finance audited Dogebonk's smart contracts on November 8, 2021.
