> For the complete documentation index, see [llms.txt](https://psychophilosophy.gitbook.io/core-vault-document-portal/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://psychophilosophy.gitbook.io/core-vault-document-portal/core-vault-ecosystem/coredao.md).

# coreDAO

coreDAO is the governance token of the CORE ecosystem. It combines a multitude of functions for its holders, including farming, governance and lending.

<figure><img src="https://2554048350-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FrDBXPvgKQqrAlEJt37y8%2Fuploads%2FSgFwrdWhofTnODD41EXn%2F186144c9db115f414aee742738c4b09b6b4a6139.png?alt=media&amp;token=2358192a-f581-427f-97c7-ac8cbc7155ec" alt=""><figcaption></figcaption></figure>

coreDAO tokens can be staked in the vault in order to farm [CORE](/core-vault-document-portal/core-vault-ecosystem/core.md). Each CORE traded incurs a **Fee-of-Transfer** **(FoT)** of 1% that is transferred to coreDAO staked in the [CORE vault](/core-vault-document-portal/core-vault-ecosystem/core-vault.md). The staking contracts are built intelligently to save gas and every time coreDAO is unstaked you claim your rewards automatically.

CORE Finance aims to become a self-sustaining project with an emphasis on decentralization and community thus coreDAO holders can participate in **on-chain** votes on platform decisions. They can vote on **CORE Improvement Proposals (CIP)** and direct the future of the platform. On the other hand, users that have active loans in coreDAO cannot participate in governance.

Initially, locked liquidity was gathered through **Liquidity Generation Events (LGEs)** that minted LP tokens composed of CORE paired with ETH, BTC, and DAI. This liquidity was eventually converted into DAI and CORE pairs to form coreDAO. This conversion along with **locked liquidity** allows coreDAO to have a **loan value** in DAI just like with CORE.

Normally, LP tokens provide liquidity which can be removed at any time. Tokens like coreDAO are much more than that because they **validate locked liquidity** that cannot be removed and at the same time are rewarded with farming, lending and governance.

**References**

* [coreDEX: Lending](https://medium.com/core-vault/coredex-lending-3d2936ff65dc)
* [coreDEX Update: Migrating LP to coreDAO](https://medium.com/core-vault/coredex-lp-migration-a82e7351d5fb)
* [CORE Ecosystem Update](https://medium.com/core-vault/core-ecosystem-update-5f2455c387b)
* [coreDAO Security Audit & Public Review](https://medium.com/core-vault/coredao-security-audit-public-review-3e20eef62e2d)
* [Initializing coreDAO…](https://medium.com/core-vault/initializing-coredao-73f36a0b361c)