Euphoria functions as an algorithmic reserve currency protocol on the Harmony network. Harmony refers to a fast and open blockchain designed for decentralized applications (DApps). The Euphoria platform provides economic and game-theoretic dynamics via staking and purchasing bonds. The purpose behind creating the Euphoria ecosystem is to optimize the Harmony network for its growth and wealth.
Forked out of Wonderland, the Euphoria ecosystem has WAGMI tokens at its core, and a hamper of various assets that backs WAGMI. These assets can be DAI, UST, and more available in the Euphoria treasury to give WAGMI an essential value that it can’t fall below. According to the platform docs, Euphoria aims to operate the same as Wonderland and Olympus platforms. Olympus is an algorithmic floating cryptocurrency with a stable purchasing power along with a market-driven value.
In addition to this, Euphoria also wants to bridge the gap between DeFi 1.0 and DeFi 2.0. DeFi 1.0 is nothing but DeFi (Decentralized Finance) protocols launched in 2020 or earlier, and DeFi 2.0 was developed to solve the issues of the DeFi 1.0 protocol.
As mentioned earlier, Euphoria utilizes staking and purchasing bonds to grow the platform economy. Staking for Euphoria is the main value accrual strategy. Users can stake their WAGMI tokens to earn rebase rewards, which are directly generated through bond sales. Rebase refers to a mechanism when a staked WAGMI balance automatically increases.
Staking WAGMI also helps outpace any fall in the token price by converging the constantly falling cost base on zero. Euphoria locks WAGMI when staked in turn for an equal amount of sWAGMI tokens. sWAGMI is a transferrable token of Euphoria and is composable with various DeFi protocols.
Bonding is the next value accrual strategy of the Euphoria platform. Bonds are designed to incentivize users with an attractive reward profile by locking liquidity. As per the platform docs, buying a bond simply means purchasing WAGMI at a discounted rate. For users, minting WAGMI means selling their assets in turn for a protocol bond.
WAGMI is the native token of Euphoria, and the supply of WAGMI is not hard-capped, which means the token supply keeps increasing through multiple platform operations.
