😨Fee Flow
Explanation of Fees, utilization of funds, & Flywheel affect.
Need for platform fees and the benefits
As one of the few project in existence that brings real world business operations and revenue to the blockchain, we are also of the very few projects that offer an investment opportunity in addition to speculative strategies.
As a consequence, we also bring real world operating cost to the blockchain. The cost are not massive but there must always be a platform revenue model that can at least cover all overhead expenses. This includes salary for employees, platform infrastructure and expansion, community voting and other support infrastructure, legal and business service fees, audits (these can be rather expensive), just to name a few.
Additionally, fees can encourage or discourage certain actions. There will be a base rate fee of .25% on all deposits and withdrawals (that is 25 cents per $100) . Withdrawal fees exist to discourage short-term yield farming while promoting long term deposits. As such, withdrawal fees tend to be punitive in scope and rate levels. Deposits and withdrawals (LP & single asset) are determined by the floating weight in junction with the standard rate (which is Base Rate & Rate Modifier). Harvesting and compounding rewards may be subject to fees but generally at a lower overall rate. Token price action along with supply and demand are a major factor in determining fees.
Yield Farm Hopping
Vaults will have a time lock option once enabled but that will not happen until the latter part of Span 2 (that is the 3rd - 4th quarter of 2022).. Allowing early withdrawal for a punitive fee may be implemented to accommodate unforeseen and/or personal emergencies. In general there is a time lock function that will freeze assets until your configured date is reached. Reinvesting yield or making a new deposit anew will not reset your original time lock. This discourages repeat deposits and cheats users out of compounding gains. Instead, you can select a new date for the new deposits. Each deposit will be released separately according to its own scheduled unlock.
The same is true for vesting periods of earned rewards. Lock & release dates are per transactions, not per account per pool. This too places the depositor in a weird game against themselves when time comes to choose if or when they should interact with their portfolio.
Rate Formula
Essentially, the formulas above are saying, “Your total cost from fees will start and increase in intervals of .25% and will repeat (add more) for every X amount of tokens per transaction or Account TVL. This part of the formula is the Floating Rate which is in addition to the Standard Rate (4b in the event of trading ONE). The standard rate is Rate Modifier + Base Rate.
Compounding (reinvesting earnings) is considered a deposit while claiming/harvesting is considered a withdrawal. Only the unlocked portion that is accessible (not the vesting FIEF that is locked) will be subject to fees. Upon unlock after vesting periods have completed, claimed FIEF will be subject to a flat rate that is half (1/2) of the current Base Rate.
Simple Fee Example | Standard Rate
The rates are displayed in relation to how the deposit/withdrawal/claim “modifier” effects the base rate (b) with the affect of such growing or shrinking with the transaction volume. So, a deposit fee of 6b would equal a rate of 1.5%
Realistic Fee Example | Tx Rate
Using the ONE/stONE TX Rate from the chart above:
(4bD) + (D/2000 * (1/4b))
This formula has an Anti-Whale Mechanism we created to restrict whales and even the odds in favor of non-whales.
✔️ To start multiply 4 * .0025 ⬅️ Standard Rate
Standard Rate * 1100 = 11 ⬅️ Deposit Modifier
✔️ Then 1100/200 = .55 ⬅️ Quotient
✔️ Multiple that quotient (d/2000) by the sum of the expression 1/4b.
Like so:
.55 * (1/4 * .0025) ➡️ .55 * (.25 * .0025) ➡️ .55 * .000625 = .00034375
.00034375 ⬅️ This is the Floating Rate
✔️ This leaves us with (11) + .00034375 = 11.00034375
✅ Deposit Modifier + Floating Rate = Tx Rate
(11) + .00034375 = 11.00034375 ⬅️ TX Rate
See it in action
Let's assume a deposit of 1,100 ONE like we did above.
This deposit would incur a
Fee Flow
Where do the fees go
Deposit Fees
Withdrawal Fees
Transactional Fees
Store purchases (mech, schwag)
Real Property (residential, commercial) transactions
Fundee transactions and contract cost (those who are receiving funding from the platform for their building/remodeling projects)
Gas Fees
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