> For the complete documentation index, see [llms.txt](https://docs.hydrau.lc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hydrau.lc/resources/drau.md).

# DRAU

DRAU is HyDRAULIC's representative ERC20 token, designed to facilitate the operations of the IP Valuation Oracle and governance of the protocol**.** DRAU tokens are used to compensate legal service providers and valuation firms for their contributions to the smart contract ecosystem. Additionally, legal entities must stake DRAU as a commitment deposit, which serves as a slashing mechanism to ensure accountability and alignment with the protocol’s integrity.

**1. Payments & Transaction Fees**

* **Valuation & Legal Services:** DRAU is the primary payment method for IP holders to pay for valuations and legal attestations within the protocol.
* **Transaction Fees:** Users can cover platform-related fees using DRAU, streamlining payments within the ecosystem.

**2. Governance & Accountability**

* **Service Provider Staking:** Legal entities and valuation firms must stake DRAU as a commitment deposit, ensuring service reliability and enabling slashing in cases of malpractice.
* **Protocol Governance:** Token holders can stake DRAU to participate in decision-making, voting on platform updates, policy changes, and protocol improvements.

**3. Incentives & Participation**

* **Marketplace Utility:** DRAU is used in the secondary IP market for purchasing and bidding on IP tokens, fostering liquidity within the ecosystem.
* **Protocol Engagement:** Lenders, borrowers, and liquidity providers may earn DRAU rewards for meaningful contributions, such as maintaining liquidity pools or engaging in activities that enhance protocol efficiency.