The application scenarios of Dora tokens mainly include the following aspects:
Decentralized Finance (DeFi) Field 1:
Liquidity Mining: Users can put their held Dora tokens into liquidity pools on supported DeFi platforms to provide liquidity for trading pairs. In return, users can earn rewards issued by the platform, which usually include more Dora tokens and a share of trading fees. This method provides liquidity support for DeFi platforms while giving users the opportunity to earn additional income.
Staking and Lending: Borrowers can use Dora tokens as collateral to borrow other digital assets or stablecoins from DeFi platforms. During the staking period, the borrower's Dora tokens will be locked until the loan and interest are repaid. Lenders can earn interest by providing funds to the platform. The value stability and liquidity of Dora tokens to some extent determine the feasibility and efficiency of staking and lending.
NFT Market:
Buying and Trading NFTs: NFTs, as unique digital assets, represent ownership of various digital content such as artworks, music, and game items. Dora tokens can be used as a payment method to purchase desired NFT artworks in the NFT market. Creators can also accept Dora tokens as a payment method for selling NFTs, thereby promoting the trading and circulation of NFTs.
Supporting the Development of NFT Projects: Some NFT projects may conduct crowdfunding or financing through Dora tokens, allowing investors to use Dora tokens to participate in the investment of these projects, helping the projects obtain funding support for development and promotion. At the same time, project parties can leverage the community and ecosystem of Dora tokens to expand the project's influence.
Decentralized Governance:
Voting and Decision-Making: In some blockchain-based decentralized organizations or platforms, holders of Dora tokens can use the tokens to participate in the governance and decision-making processes of projects, such as voting on platform upgrades, rule modifications, and fund allocations. Users holding more Dora tokens usually have greater voting weight and can have a larger impact on the development direction of the project.
Community Incentives: To encourage users to actively participate in community building and governance, some projects will use Dora tokens as rewards, distributed to those who contribute to the community, such as providing valuable suggestions, discovering and reporting vulnerabilities, and participating in community promotion.
Cross-Border Payments and Transfers: As Dora tokens are based on blockchain technology, they possess characteristics such as decentralization, speed, and low cost, making them suitable for cross-border payments and transfers. Compared to traditional bank transfers, using Dora tokens can avoid cumbersome procedures and high fees, and transactions are faster, allowing for quick fund transfers.
Oracle Services: In the blockchain world, oracles are the bridges that connect blockchain with real-world data. Some Dora projects may offer oracle services, and Dora tokens can be used to pay for these services. By using Dora tokens, users can obtain reliable external data to provide accurate information input for the execution of smart contracts.