BlackHoleDAO Is Taking Part In The Interpretation Of New Defi3.0

1、What Is the BlackHoleDAO protocol?

BlackHoleDAO is a decentralized asset management protocol based on the governance of DAOs. An entirely new standardized framework entitled BHDP is built on basis of DeFi3.0. The burning mechanism of this BHDP uses the standard stock market merging and splitting approach to handling the market’s imbalance between strong inflation and deflation. The DAO’s credit-based lending service also becomes operational.

BlackHoleDAO Is Taking Part In The Interpretation Of New Defi3.0


The BlackHoleDAO protocol’s primary concept is to mint extra tokens by the smart contract’s base tokens. In the following aspects, it is unique.

  1. Ecology’s Responsiveness and Compatibility

The BlackHoleDAO protocol is a burning procedure that does not require authorization. Anyone with access to the protocol could set up a burning pool with an approval-free activation contract that could be immediately infiltrated into any DeFi project that required a burning incentive.

  1. Multiple Supports For The Burning Protocol Is Product Innovation

Burning liquidity rewards and single token burning are both supported natively.

  1. The Leading Quantitative Deflation Model

Black Token is a unique burning economic model that implements the geometric progressio convergence paradigm and will experience a “deflationary cycle” across the board. The tokens will be valued less than 5% after 15 deflationary cycles, and the worth of the token will grow indefinitely with the “deflationary cycle.


2、3 Deflationary Ways Of The Protocol

The 3 deflationary ways of the protocol are:

  • It’s a usual practice to burn 60 percent transaction tax BHO immediately.
  • In the liquidity pool, 50% of the VC Pool is utilized for burning BHO.
  • When excessive inflation occurs, the BHDP severe deflation procedure will be stimulated:

The deflation process will be initiated when the inventory i.e. BHO in the marketplace reaches a particular quantity with a zero support rate. Stake interest will eventually fall by a specific percentage.

BlackHoleDAO Is Taking Part In The Interpretation Of New Defi3.0

Solved The High APY Inflation Problem Of Staking

The acronym APY stands for annualized percentage yield. It considers the impact of compound interest to calculate the real reward ratio on your principal. Your staked BHO is your principal, and compound interest is added at each epoch thanks to the rebase process (about 8 hours).

According to Staking, the average APY inflation rate for the top tokens is roughly 8%, which is significantly higher than real-world figures. BlackHoleDAO solved this high APY inflation problem of staking.

Solved The Minting Problem After Bond’s High Inflation

BlackHoleDAO Stake uses a percentage of the entire staking value to dynamically address the minting problem. To put it another way, when the market is experiencing inflation, staking interest will fall, and when the market is suffering deflation, staking interest will increase.

It will, however, never exceed the whole amount staked. Dynamic management has the advantage of preventing the general behavior from fleeing when a profit is achieved.


Olympus DAO can produce tokens at any time, but BlackHoleDAO immensely restricts the number of issued tokens based on the inflation rate. With a sufficiently high inflation rate, the percentage of BHO issued by Bond will decrease. When the bond’s minting runs out, it will be retired. When the support rate approaches 0, the bond will stop being produced.

When buying Tokens through Olympus DAO, it gets a discount, whilst buying Tokens by BlackHoleDAO costs the same as the market price but 15% saving occurs on transaction fees.

The most significant point in the above-mentioned cases is that when the market circulation value becomes equal to the treasury value, the Bond has stopped minting; showing that before the market enters inflation, the percentage of minting in the stream will slowly decrease until it is ceased, attempting to avoid further asset compression during inflation.

3、BlackHoleDAO Will Establish A New Standard In The DeFi Field

BlackHoleDAO will establish a new standard in the DeFi field as it will have far-reaching consequences for the global financial system, as well as how institutions, authorities, investors, and consumers interact globally. The goal of BlackHoleDAO is to decrease the entry barrier for regular investors and give users secure and abundant financial advantages.

BlackHoleDAO formulates matching Farming strategies based on DeFi3.0+ to get advantages through the protocol, reducing the operation and use expenses of users, utilizing various Farming as a service, and giving revenues to token holders, i.e. “Farming as a service.”

BlackHoleDAO Is Taking Part In The Interpretation Of New Defi3.0

VC-Pool, Donation Pool, Transaction Tax, Black Hole Reactor, DAOs Ranking, and other components make up BlackHoleDAO. Each component has a distinct role. Each component is interdependent, resulting in an open and highly configurable asset management infrastructure protocol capability.

The following issues are solved by BlackHoleDAO Protocol (BHDP):

  • Simplify DeFi’s application procedure to make it more accessible to regular consumers.
  • Resolve the issue of token inflation by combining the efforts of several protocols.
  • Reduce the possibility of giant whales.



DeFi 2.0 and 3.0 refer to a subset of emergent protocols that build on top of the original money LEGOs to enhance the present DeFi environment, typically in the case of liquidity provision and incentive system. The entire DeFi economy is gradually becoming more user-friendly, safe, and accessible with the introduction of these innovative payment primitives.

BlackHoleDAO’s contributes to DeFi 2.0 and 3.0 as new functionalities may be constructed from existing ones since it adds to the services that are just open-source software code operating as smart contracts on a blockchain. Aggregators and yield farming services transfer assets to the platform with the best pricing or yield automatically. BlackHoleDAO promises to make money as programmable as information, trade, and social interactions in previous generations of the internet economy. It assists in solving the high APY inflation rate due to staking and also solves the minting problem after the bond’s high inflation.

Learn more about CoinMarketCap’s interpretation of BlackHoleDAO:

1、A Right Way for Investors – From Traditional Investment to DeFi Mining in Encryption Market

2、Interpretation of New DeFi 3.0-BlackHoleDAO


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