DTEF has unsurprisingly delayed its launch yet again. Quick heads-up here from @downto_finance: the official team has issued a clear warning that the upcoming DTF staking might trigger a major price drop in the market. On September 4th, the DETF protocol launched DTF staking. But this isn’t the staking we typically understand as earning protocol revenue shares. Instead, it’s a temporary staking mechanism set up by the devs as an apology, allowing token holders to earn rewards. The dev team allocated 6 million DTF tokens as rewards for this temporary staking pool. Based on my calculations, the staking yield is roughly 2-3% daily. Tokens staked are not locked, so you can deposit and withdraw anytime. Initially, the plan was to end this staking pool on September 7th (three days later). Any tokens left in the staking pool would automatically convert into the protocol’s rebase tokens for stakers. Here’s how the protocol operates: it sells a portion of the DTF tokens in the staking pool on the secondary market to buy ETH, forming LP pairs to inject liquidity into the current DTF-ETH pool. This liquidity is owned by the protocol (POL). The extent of price fluctuations in the DTF market largely depends on how many tokens remain in the staking pool, which is why the official team warned that the migration might cause a price crash. Stakers who receive the corresponding rebase tokens essentially hold a perpetual Bond NFT as a yield certificate. These tokens cannot be closed or converted back into DTF spot tokens, and it’s still unclear whether they can be traded on secondary markets. Once the protocol officially launches, anyone who mints/bonds will distribute free basket shares to rebase token holders. The exact revenue-sharing ratio hasn’t been disclosed by the official team yet. This Ponzi-like mechanism is pretty straightforward: The DETF protocol incentivizes users to stake DTF to earn rebase tokens, granting them permanent rights to a share of the basket revenue generated by mint/bond players. The more mint/bond players arbitrage/speculate through the protocol, the higher the earnings for rebase token holders. This, in turn, encourages more users to buy DTF from the secondary market and stake it to earn rebase tokens and basket revenue shares. The staked DTF tokens are then used to purchase DTF-ETH liquidity, which strengthens the LP pool depth as protocol-owned liquidity (POL).