Potential misuse
Risks and considerations of "Wash Trading"
Wash trading, which involves buying and selling an NFT to yourself to artificially accumulate DCAST tokens, involves various risks and costs:
Transaction fees: Each sale transaction is subject to a 4% fee, which is deducted directly by the protocol's treasury.
Assets included in revenue calculation: Only revenues in MATIC, WBTC, WETH and USDC will be considered for DCAST token distributions. These cryptocurrencies were chosen due to their controlled volatility and difficult capitalization to manipulate.
Competition: The effectiveness of wash trading could be compromised by other users discovering and replicating the strategy, potentially diluting individual gains.
It is worth noting that wash trading may have advantages when executed close to the end of the month, maximizing the amount of DCAST tokens allocated through this method compared to those acquired through trading on a decentralized platform (DEX).
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