Introducing a Game Changer.
“Time is your friend, impulse is your enemy. Take advantage of compound interest and don’t be captivated by the siren song of the market.” ~ Warren Buffett
Abstract
Stake Protocol is a new concept in sustainable, high yield Defi rewards.
By analyzing some of the biggest Defi protocols, such as Titano, Drip Foundation, Jade Protocol, and Libero, we’ve identified key aspects that made these protocols successful, while also identifying unique potential to the long term sustainability of the projects. We are not in any way saying any of these protocols will fail or are vulnerable, but instead see an opportunity to add additional measures to ensure maximum sustainability for long term growth.
The aforementioned protocols aspire to be bulletproof high yield reward protocols, but due to human nature, at some point early investors will inevitably dump into incoming buys from new investors. This not only forces the price down, but it discourages new investors from entering the system at all, and the price continues its downtrend.
Stake Protocol utilizes key aspects from the above above protocols, including transaction fees, daily faucet, high frequency positive rebase, treasury farming, reservoir/liquidity building, price floor protection, VC investments, team based referral program with airdrops, whale tax, capped returns, and frequent burns.
However where Stake excels is by introducing a protocol called a Net Elastic Rebase Depletion (NERD). In short it creates a system by where those who abuse the ecosystem by constantly dumping actually result in a net positive for the community and ensure a smooth flow of returns for new and early investors alike.
Stake Protocol
Stake Protocol introduces high frequency positive rebase system every 30 minutes for up to 137,640.83% APY (2% Daily), on top of the core faucet return daily of 1% Daily for 365 days, for a total of up to 3% daily!
However, we manage this is a way that is more sustainable that existing protocols.
Please note all terms below are subject to change in order to make the protocol more accessible for the average user to understand.
Here’s how it works:
The Stake faucet permanently locks $STAKE deposits, for which you receive 1% daily returns everyday for 365 days. You may compound your balance daily to increase and extend your earnings indefinitely, or until your max payout is reached.
Additionally you earn a high frequency positive rebase every half hour for an 137,640.83% APY (2% Daily) on your total staked funds, called Gross Faucet Value (GFV).
Rewards, both on faucet and rebase, can be claimed at any time.
To keep the system sustainable and fair, we use a system of tracking both Gross and Net deposits and claims.
Net Deposits (ND), Gross Claims (GC), Net Faucet Value (NFV), Gross Faucet Value (GFV)
Net Faucet Value (NFV) earns 1% = (Deposits + Airdrops + Compounds )
Gross Faucet Value (GFV) earns an additional 2%= Net Faucet Value+ Rebase Compounds
Gross Claimed (GC )= Total of all Claimed Tokens (both faucet and rebase).
Net Deposits (ND) = NFV(Deposits + Airdrops + Compounds ) - Gross Claims
How does this look?
To simplify for these examples, we will use the dollar amount equivalent of $STAKE. Deposits and claims however will in fact be done in $STAKE.
Assume you deposit $1,000 in the Stake Faucet.
After the first day you will receive 1% on your NFV, which will be $10 ($1,000 * 1%).
This alone would recoup your initial investment in just over 3 months without ever compounding, leaving almost 9 months worth of pure profits.
Additionally you receive 2% on your GFV, which provides you with a additional $20 to claim ($1,000 * 2%).
This makes a grand total on the day of $30. This means you would recoup your full investment in just over 30 days without compounding.
However, let’s now look at how compounding once daily alters this.
After day one, you decide to compound both your Faucet and Rebase rewards.
Now your NFV is $1,010 ($1,000 + $10),
while your GFV is $1,030 ($1,010 + $20).
On day 2 you will earn $10.10 from the faucet ($1,010 * 1%),
and $20.60 from Rebase($1,030 * 2%), for a total of $30.70.
Your NFV is now $1,020.10 ($1,010 + $10.10),
and GFV is now $1,060.70 ($1,030 + $30.70).
This is compared to say $1,020.1 if you invested $1,000 in Drip, or $1,040.4 if you invested the same in Titano.
You can claim these rewards or continue to compound and grow.
So what gives?
In any scenario or protocol, simply increasing the rewards to attract new users will only work so long. This is why projects will peak, and then continue to fall as greed and fear kick in. This is what we’re seeing with almost all positive rebase protocols at the moment. It doesn’t matter how many burns you perform, if sells always outpace the buys the price will drop.
So how do we offer more, yet increase sustainability?
You may have noticed something interesting here, and that’s that we’ve separated the GFV from the NFV, and this is where our protocol shines.
It’s natural to want to claim rewards to take profits, and we all should. Why the hell are we investing if we don’t take profits? However, if you’re only claiming profits, which takes funds out of the system, and never depositing, compounding, or helping grow the community, new buyers will be forever buying into early investor sell orders until the price hits zero.
To solve this, we’ve developed something called a Net Elastic Rebase Depletion (NERD) protocol. What this does is track that your Net Deposits (ND) are at a positive, meaning you’re not over dumping, and then gradually applies a negative rebase on the GFV to make up for undesired behavior.
If your ND is positive, meaning you’ve deposited, compounded, and been airdropped more than you’ve claimed, you’ll continue to receive your positive rebase at 100%.
If your ND goes negative, your rebase rewards will reduce and can even negatively to affect your GFV. Don’t worry, your NFV (deposits) will never be touched, meaning worst case you will always receive 1% on your Net Faucet Value (Deposits +compounds + airdrops), but your rebase rewards will become non-existent if behavior is not adjusted.
Please note, GFV compounds are counted in your GC which affect your Capped Payout, but not your Net Deposits. This means that compounding NFV always increases your Net deposits, while compounding your GVF has a neutral affect and doesn’t not affect your ND. This is due to the fact that NERD can reduce your GFV value so therefore is not in fact an increase, but instead a current metric of which to reward. However claiming GFV and NFV rewards counts against your ND equally.
Simply; our NERD protocol rewards positive activity and responsibly taking profits with full rebase rewards, and punish those dumping without regard by adding that offenders rebase to the rewards pool to continue paying out the positive players.
Capped and Max Payout is a great indicator of how you’re doing in the entire system. Whichever of these you reach first, your rewards are completed.
Capped Payout— GC + Total Available Rewards= 10% of Total Supply.
Max Payout —NFV (Deposits + Airdrops + Compounds)*3.65.
Remember compounding your NFV always extends your Max Payout.
How does this work?
In the above scenario, we had a NFV of $1,020.10, and a GFV of $1,060.70.
Let’s assume on day 3, you claimed rewards to take profit. Nothing wrong with that, so let’s break it down.
You earn $10.20 from the faucet, and $21.21 from rebase. Assuming you claim the full $31.41, your GC would be $51.51 (remember compounds count as a claim but do not negatively impact your ND). This means you have compounded 20.10 from NFV, meaning ND is $1,020.10, but have now claimed $31.41, which brings your ND down to $988.69. Still very Positive. You could do this daily for another 19 days, or, you could do the smart thing and continue to compound and build up your ND.
The more you compound now, the more you can claim later with no worries, however, once your ND goes goes below zero, the NERD kicks in and your rebase rewards decline.
Rebase rewards go from 100% to zero in a decline of negative 33% of your NFV. If you continue to dump past negative 33%, your GFV will be reduced, until it becomes even with your NFV (NFV is your floor and you will never go lower). You will receive your 1% daily at this point, however you will need to build your ND back into positive territory to begin rebase rewards, so you can start to rebuild your GFV.
When NERD kicks in, it doesn’t stop the rebase rewards, but instead allocates them to the reward pool to grow the ecosystem. As GFV declines, those are also added to the reward pool. This measure counteracts the negative affects by the dumper.
Meaning if you have a GFV has been fully reduced due to negative ND, and is now even with you NFV at $1,000, the 2% rebase ($20) daily will be added to the rewards pool instead of you.
NERD protocol, combined with other existing features is how we maintain sustainability where others have failed.
Protocol Owned Liquidity (POL)
To facilitate swaps directly through our protocol and fund the reward pool properly, we are adding our own Protocol Owned Liquidity.
This allows us to offer better buy fees for users then from DEX liquidity, as well as send the treasury BNB instead of $STAKE which will need to be swapped later.
Buy & Sell Fees-
POL BUY= 3% Bnb to the treasury.
DEX BUY= 13% $STAKE — 5% to Rewards Pool, 5% to POL, 3% to Treasury.
All Sells = 18% $STAKE — 5% to Rewards Pool, 5% to POL, 8% to Treasury.
Compounds = 5% to Rewards Pool.
Look for all fees to be published shortly
We incentive liquidity through a share of platform fees and daily payouts to users who have staked liquidity. Users can add liquidity by adding BNB directly and we pair it with $STAKE from the rewards pool.
Whale Claim Tax-
We have implemented a tax on claims to maximize sustainability. Fees taken go directly back into the rewards pool. More info to come.
Team Building Referral Program-
Stake Protocol is implementing team building referrals with downlines to allow you to maximize growth and earning potential. This is a powerful tool used to dramatically scale the community. More info to come.
Treasury
Floor Price
We’re skipping bonding in favor of a floor price protection protocol. There’s a few reasons for this. One, it’s easy for players to get stuck in bonds. This is bad for users for many reasons. Additionally, bonds can be added to Dexs completely negating their use regardless. Instead, we will be using a portion of our treasury to defend floor price. Simply put, when the determined floor price is tested, our protocol will automatically use funds in our treasury to buy back and burn $STAKE from the open market. This will not be done slowly and randomly to avoid gaming the system.
Please note that while these systems help, due to multiple market factors, no one can ever truly guarantee a floor price. Defending the floor price is only as successful as the project itself. That being said, a solid treasury building protocol can go a long way in defense of price and will be implemented as such. However should a surplus accumulate, with the floor price not in need of protecting, funds will be added to POL to strengthen the price.
Through a combination of staking and VC investing, we are able to grow the treasury and further expand our floor price protection, marketing, and cross-chain expansion. More into to follow.
Fees
We use a variety of fees similar to other protocols that make sense to maintain sustainability. Please see docs for more info on fee structures.
Conclusion
Stake Protocol really is a game changer. We’ve not only figured out a way to increase rewards, but also maintain sustainability in a way that punishes dumpers while at the same time increases the reward pool for everyone else. This is done in a way that’s intuitive and easy to track so you’ll never be caught off guard.
This is just an intro, with so much more coming in the roadmap, including Dex, casino, lottery, cross-chain deployment and more. The more real work use cases we develop for $STAKE, the further we extend the lifecycle for everyone. We all know how profitable these protocols are, so now with NERD creating sustainability, there’s no telling how big this might get!
Lottery will be rolled out a few weeks after launch so get ready to jump in and win even more!
Join the community here to learn more https://t.me/Stakeprotocolportal
