Drip Vault

Functions of Droplit Finance Drip Vault

The Dao fund is the second line of defense on top of the Bond Mechanism. The Drip Vault is controlled by the Developers and will later move to a governance system to vote on using funds in certain areas of the project and outside including investment, marketing etc.

Information about the Drip Vault is as follows:

  • When LIT TWAP is below 1, buybacks will be initiated by the Drip Vault. These will be done at a time decided by the core team and not publicized until after the protocol is back in expansion to prevent front running.

  • When LIT TWAP is extremely high, the Drip Vault will sell some LIT to help assist bringing back to peg and prepare its reserves for buybacks below 1.

  • The Drip Vault fund will hold a range of assets at the discretion of the core team

  • The fund may or may not invest in safe projects to earn yield and grow itself at the discretion of the team.

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