💸Auto Buyback Pool
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 forked 2 novel mechanisms from bYield Finance to change the way how fees are used and address the challenges developer faced when handling deposit fees.
Deposit Fees collected come from various denominations. It can come in the form of an LP or Token (eg. USDC, FTM, ETH), providing cumbersome for the developer to swap into the appropriate USDC for buyback. Our novel fees processor solves this issue by automatically breaking all LP and converting all Tokens into a common USDC denomination.
In the case of FuryLabs, 40% of all fees collected are sent to our Fees Processor contract for conversion into USDC.
These funds will be automatically sent to our Buyback Protocol for community governance. The Buyback Protocol will have a pool of USDC that farmers can use to buyback the $FURY. This solves a pain point in the Yield Farming industry, when buyback and burn?
If the price of $FURY falls below the presale price, 50% of the pool will be used to buyback.
Buyback Protocol can be called by anyone, including the farmers themselves. Each Buyback Call can only be called whenever the price falls below 10 USDT.
Such a mechanism will be able to promote the price sustainability of $FURY in the long run as the more farmers stake and farm, the bigger the Buyback Pool and the greater price impact it can create.
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 causes farms to fail and investors to lose confidence. We are here to change that, as we remain accountable for the fees we collect. We hope such a mechanism can be taken on by the yield farming community as we boost accountability to deposit fees.
