Tapioca is a DAO governed lending/borrowing protocol on LayerZero. Tapioca offers users the ability to take loans against many different assets, which can be settled to (and from) any chain. The protocol is governed by the vote escrowed veTAP token, which enables holders to participate in governance and share in fee revenues. Users can lend assets on Tapioca which features an elastic APY based on utilization of the asset. Tapioca gives users the opportunity to receive exposure to multiple chains and the protocols on them, generating additional yield streams.
Tapioca features leveraged yield positions & self repaying loans through putting users collateral to work in yield generating vaults and other strategies to pay debt off. Tapioca also offers a liquidation auction queue, which allows this lucrative mechanism to be democratically exploited for profit, versus the existing model of allowing well funded bot operators to race each other to hoard all of the profits from liquidations. Tapioca utilizes BoringCrypto’s newest iteration of Bentobox, Yieldbox, as well as Kashi lending technology it has licensed from BoringCrypto, currently in use by Abracadabra & Sushiswap.
The TAP token is the backbone of the Tapioca DAO token economy. TAP was carefully crafted with a unique and novel approach to tokenomics design to be sustainably distributed over a long-term horizon with economic growth and value retention as the foremost doctrines. The end goal is to reach a ubiquitous distribution of the TAP token to facilitate maximal decentralization of the Tapioca DAO ecosystem. Notably, there are no emissions of TAP itself, nor Tapioca feature any liquidity mining programs.
The TAP token utilizes the LayerZero OFT20 V2 (Omnichain Fungible Token) token super-standard. Because of this, TAP is able to be transferred to any EVM or non-EVM network via minting & burning from it's token contract- no bridges needed. New TAP tokens are only injected into the circulating supply through redemptions of oTAP in the DAO Share Options (DSO) incentive program.
A total of 100,000,000 (one hundred million) Tapioca DAO (TAP) tokens are set to be distributed over a period of at least 6 years with an exponential decay curve. Once this supply is distributed, there can never be any more TAP tokens introduced to the supply.
Token Issuance
Tapioca's token economy features a novel issuance mechanism, with no liquidity mining programs. The TAP token itself has no emissions. The only way to receive TAP is through exercising oTAP call options received from the DSO Incentive Program.
With oTAP, lenders can purchase TAP over-the-counter (OTC) below market value from the Tapioca DAO by exercising their oTAP call options. Open (unredeemed) oTAP call options will be visible on-chain, which enables users to easily estimate the TAP token's price floor.
TAP's inflation schedule has been designed to dynamically become longer and longer based on oTAP redemptions than the pre-defined six-year duration to hit the total permeation of the TAP supply. This was done to create a sustainable method of facilitating long-term economic growth with tenable inflation.
