Auto Buyback and Fees Processing Policy
Last updated
Last updated
Ensuring that farms continue to be sustainable takes more than just calculated tokenomics. Developers must do their part in ensuring that deposit fees collected are utilised for the benefit of the farmers.
To create accountability for the deposit fees used, we have introduced 2 novel mechanisms to change the way how fees are used and address the challenges developer faced when handling deposit fees.
Fees Processor: 0x164e6f80f703718712623Bc84Fc19dD734c24d56 Buyback Protocol: 0xa224EfFc90F570e22E757788DD24Fe279f9004eE
Deposit Fees collected comes from various denomination. It can come in the form of an LP or Token (eg. ADA, CAKE, BUSD), providing cumbersome for the developer to swap into the appropriate BUSD for buyback. Our novel fees processor solves this issue by automatically breaking all LP and converting all Tokens into a common BUSD denomination.
In the case of bYield, 40% of all fees collected are sent to our Fees Processor contract for conversion into BUSD.
These funds will be automatically sent to our Buyback Protocol for community governance. The Buyback Protocol will have a pool of BUSD that farmers can use to buyback the bYield. This solves a pain point in the Yield Farming industry, when buyback and burn? Instead of broken promises, our buyback protocol can perform a Buyback and Burn every 4 hours.
Our Buyback Protocol can be called by anyone, including the farmers themselves. Each Buyback Call can only be called every 4 hours, limiting to 6% of the BUSD Pool available. This means that if the Pool has $10,000, the first call will use $600 to buyback and burn bYield. The next call will be 4 hours later.
Such a mechanism will be able to promote the price sustainability of bYield in the long run as the more farmers stake and farm, the bigger the BUSD Pool available and the greater price impact it can create within every 4 hours.
The answer is simple. If the developers could run away with deposit fees without accountability, why wouldn't they? It is exactly the mindset of these developers that causing farms to fail and investors to lose confidence. We are here to change that, as we remain accountable with the fees we collect and our KYC to rugdoc to boost our transparency and accountability. We hope such a mechanism can be taken on by the yield farming community as we boost accountability to deposit fees.
