Creating Utility For DeFi Tokens

Arbiter significantly enhances the utility of DeFi tokens by integrating them into its auction mechanisms. When a protocol adopts Arbiter, its tokens acquire an additional use case, serving as the primary currency for participating in the protocol's Arbiter Role auctions.

Token Utility Through Auctions

• Auction Participation: using the protocol’s token to be used in Arbiter’s auctions generates direct demand for the token, as users must acquire and hold it to compete in auctions.

• Sustainable Rewards: as the protocol's token is used in auction it is also distributed to the protocol's Liquidity Providers. This creates unique possibility to create a sustainable streams of the protocol's token to the protocol's users.

Example: When a DeFi protocol integrates Arbiter, its native token becomes the currency for the protocol's Arbiter Role auctions. Participants must bid using this token, resulting in increased buying pressure as users vie for the Arbiter Role. The auction proceeds are distributed to the protocol or the protocol users what creates a sustainable stream of the protocol's token.

Conclusion: Arbiter not only adds functionality to protocols but also transforms their native tokens into tools for competition and value creation within the ecosystem. This enhanced utility ultimately strengthens the protocol's market position and increases its appeal to users and investors alike.