🧩Core Concepts

This guide introduces the fundamental concepts behind Dozer Finance. Understanding these core concepts will help you navigate the protocol efficiently and make the most of its features.

Protocol Architecture

DAG-Blockchain Hybrid

Dozer Finance is built on an innovative hybrid DAG-blockchain architecture. This design enables parallel transaction processing for high throughput, featuring real-time validation with O(1) complexity. The system achieves efficient network propagation through a compact block structure averaging just 190 bytes.

Low-Fee Transactions

Dozer Finance implements an efficient transaction model with minimal fees, making micro-transactions cost-effective and increasing accessibility for users in developing economies. This approach supports frequent DeFi interactions while driving market efficiency towards traditional finance standards, all while maintaining sustainable protocol operations.

MEV Protection

Dozer implements robust MEV protection through a sophisticated system that uses transaction ordering based on block hash entropy. This creates deterministic yet unpredictable sequencing while maintaining network-wide consensus and preventing validator manipulation.

Trading Platform

Instant Finality

All transactions on Dozer achieve instant finality through our advanced system architecture. This includes real-time transaction validation, fast block propagation in the P2P network, DAG-based parallel processing, and deterministic transaction ordering.

Liquidity Pools

Dozer's liquidity pools operate using Automated Market Making (AMM) with a dynamic fee structure based on pool volume. We offer impermanent loss protection programs and incentivized liquidity provision to ensure a robust trading environment.

Security Model

Bitcoin-Grade Security

Dozer inherits robust security through merged mining with Bitcoin, giving us access to Bitcoin's substantial hashrate. This provides enhanced protection against 51% attacks while maintaining an energy-efficient security model.

Safety Module

Our Safety Module provides additional protocol protection through a DZR token staking mechanism that balances risk and reward for stakers. This system is governed by the community and features dynamic risk management capabilities.

Token Economics

DZR Token Utility

The DZR token is central to our ecosystem, enabling governance participation, Safety Module staking, protocol development incentives, and liquidity mining rewards.

Dynamic Fee Structure

Dozer implements a sophisticated volume-based fee model designed to optimize market efficiency. Fees adapt based on pool volume and market conditions, with higher fees for low-volume pools to incentivize liquidity and lower fees for high-volume pools to encourage trading. All fees are distributed to liquidity providers to ensure sustainable pools, with a hard-capped maximum fee determined by governance.

Next Steps

Now that you understand the core concepts, you can start trading on the platform, provide liquidity to earn rewards, explore Dozer Blueprints for development, or participate in governance. For detailed guides on each aspect, check out our User Guides section.