πŸ”¨ Utility

Fee Reduction πŸ“‰

Users can reduce transaction fees for myXXX tokens using MyS. In addition, the zap-in function of our AMMs (wrapping contracts that swap myXXX to XXX) allows for swapping between YYY/XXX and YYY/myXXX LP tokens β™²

The following calculations outline the different possibilities to reduce fees on the platform and are based on the TGE (Token Generation event) timeline, which the DAO will decide in the future.

πŸ”΄ Reduction for 1 month:

Key:

  • MyS amount for 1 month reduced: rM

  • Total MyS supply: mS

  • MyS divisor: dmS

  • Fix amount: fA

rM = mS / dmS + fA

rM=mS/dmS+fA​

Example:

  • rM = ?

  • mS = 1,000,000

  • dmS = 10,000,000

  • fA = 1.00

​

rM = 1,000,000 / 10,000,000 + 1.00

rM=1,000,000/10,000,000+1.00

rM = 0.10 + 1.00

rM=0.10+1.00

rM = 1.1

​

The TEN amount is set and displayed on the website (can be changed by the DAO).

The fee reduction for both types (MyS & TEN) for 1 year = monthly reduction amount (rM) x 10

MyS Amount for 1-year reduction: rY

=>

rY = rM * 10

rY=rMβˆ—10​

πŸ”΄ Fee Reduction of myXXX transaction fees

Users can burn MyS or lock TEN to lower their transaction fee for a specific time limit. This reduction counts for every myXXX token, meaning users don’t need to burn twice if they want lower fees for either myXXX or myYYY.

By leveraging this mechanism, users can benefit from the following:

Key:

  • Transaction fee: tF

  • Reflow fee: rF

  • DAO fee: dF

  • Amount transferred: aT

  • Fee multiplier: fM

πŸ”΄ Transaction fees without fee reduction => fM=10:

tF = (rF + dF) * fM / 10

tF=(rF+dF)βˆ—fM/10

rF0 = aT * 100 / 10,000

rF0=aTβˆ—100/10,000

rF = rF0 * 10 / 10 => 1%

rF=rF0βˆ—10/10=>1​

dF0 = aT * 20 / 10,000

dF0=aTβˆ—20/10,000

dF = dF0 * 10 / 10 => 0.2%

dF=dF0βˆ—10/10=>0.2​

​

tF = 1.2%​

​

πŸ”΄ Transaction fees reduced by holding MyS:

tF = (rF + dF) * fM / 10

tF=(rF+dF)βˆ—fM/10​

​​

rF0 = aT * 100 / 10,000

rF0=aTβˆ—100/10,000

rF = rF0 * 9 / 10 => 0.9%

rF=rF0βˆ—9/10=>0.9​

​

dF0 = aT * 20 / 10,000

dF0=aTβˆ—20/10,000

dF = dF0 * 9 / 10 => 0.1%*

dF=dF0βˆ—9/10=>0.1*

​

tF = 1.0%

πŸ”΄ Transaction fees reduced by the fee-reducing contract:

tF = (rF + dF) * fM / 10

tF=(rF+dF)βˆ—fM/10​

rF0 = aT * 100 / 10,000

rF0=aTβˆ—100/10,000​

rF = rF0 * 5 / 10 => 0.5%

rF=rF0βˆ—5/10=>0.5​

dF0 = aT * 20 / 10,000

dF0=aTβˆ—20/10,000​

dF = dF0 * 5 / 10 => 0.1%

dF=dF0βˆ—5/10=>0.1​

​

tF = 0.6%

​

The fee depends on whether the transaction sender is a liquidity pool. In practice, this means that Alice's fee is reduced to 0.6% - Bob's fee is not:

Bob transfers 100.00 myXXX to Alice:

=> Alice receives 98.8 myXXX tokens

Alice transfers 100.00 myXXX to Bob:

=> Alice receives 99.4 myXXX tokens

Alice swaps 100 XXX for myXXX:

=> Alice receives 99.4 myXXX tokens

Bob swaps 100 XXX for myXXX:

=> Bob receives 98.8 myXXX tokens

Swapping also depends on the liquidity pool’s ratio (not just the transaction fee). For simplicity, we assume that XXX has a 1:1 ratio with myXXX with a 0.0% price impact on the pool.

πŸ”΄ Fee Reduction for Adding Liquidity

While all users can add liquidity to the PancakeSwap pool (or other supported DEXs), they can’t mint myXXX Tokens on their own. If there were to try, the slippage would be too large due to myXXX token transaction fees.

It’s also possible to add liquidity by minting new myXXX tokens on the wrapper (the contract will immediately add liquidity with these new tokens). A standard zap fee of 1% is applied on any supplied LP tokens, which can be reduced as follows:

Key:

  • Standard fee: sF

  • Fee multiplier: fM

  • Zap fee: zF

Zap fees without fee reduction => fM = 10:

zF = sF * fM / 10 => 1%

Zap fees with holding MyS => fM = 5:

zF = sF * fM / 10 => 0.5%

Zap fees with the fee reducer => fM = 0:

zF = sF * fM / 10 => 0.0%

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