As a Loyalty token, Cheddar provides additional value to NEAR dApps through partnerships, integrations and special offers. Any dApp in the NEAR ecosystem can collaborate with Cheddar to provide additional utility to its users through direct integration or recognition of Cheddar held by the user. Users can spend or burn Cheddar to gain special PowerUps or access. Here are some potential use cases:
The Cheddar DAO, Cheddar Farm, and Partners will use multiple burn strategies to help to manage the circulating supply of Cheddar.
- 1.Deposit fees — Non-Native (non-Cheddar) pools that do not have a direct partnership will Cheddar will be charged a deposit fee. The fee will be deducted upon withdrawal from the pool. The fees can be voted on by the Cheddar DAO to buy back and burn Cheddar.
- 2.Power-Ups / NFT’s - Cheddar can be exchanged and burned for Power Up tokens and NFT’s, dependent upon specific criteria set initially by the project team and later by the Cheddar DAO. The tokens and NFT’s can be used for yield boosts, discounts, or exclusive access.
- 3.Vaults - As part of the Cheddar Roadmap vaults will allow for users to auto-compound LP’s , avoiding the need to manually compound.
- 4.dApp Integrations — At the core of the Cheddar Farm is the NEAR ecosystem of dApps, through specific integrations NEAR dApps burn Cheddar.
Apps in the Cheddar Network can accept Cheddar as:
- Payment for a purchase
- Discounted fees
The Cheddar Farm is a great way for dApps to launch or bring extra exposure to their app and token. The Cheddar Farm allows a dApp native token to be farmed with Cheddar or provide hodlers extra utility by allowing them to farm Cheddar by staking their tokens. A portion of the pool's deposit fees will be used to buy back and burn Cheddar.
In addition to farmed Cheddar, a Loyalty Pool will be established and receive a distribution of 5% of unused Cheddar quarterly. The Cheddar DAO will decide the timing and distribution of the pool to each dApp participating in the Cheddar ecosystem.