π¨ Utility
Fee Reduction π
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 β²
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.
π΄ 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+fAβ
Example:
rM = ?
mS = 1,000,000
dmS = 10,000,000
fA = 1.00
β
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
β
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=rMβ10β
π΄ 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 donβt 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
π΄ Transaction fees without fee reduction => fM=10:
tF = (rF + dF) * fM / 10
tF=(rF+dF)βfM/10
rF0 = aT * 100 / 10,000
rF0=aTβ100/10,000
rF = rF0 * 10 / 10 => 1%
rF=rF0β10/10=>1β
dF0 = aT * 20 / 10,000
dF0=aTβ20/10,000
dF = dF0 * 10 / 10 => 0.2%
dF=dF0β10/10=>0.2β
β
tF = 1.2%β
β
π΄ Transaction fees reduced by holding MyS:
tF = (rF + dF) * fM / 10
tF=(rF+dF)βfM/10β
ββ
rF0 = aT * 100 / 10,000
rF0=aTβ100/10,000
rF = rF0 * 9 / 10 => 0.9%
rF=rF0β9/10=>0.9β
β
dF0 = aT * 20 / 10,000
dF0=aTβ20/10,000
dF = dF0 * 9 / 10 => 0.1%*
dF=dF0β9/10=>0.1*
β
tF = 1.0%
π΄ Transaction fees reduced by the fee-reducing contract:
tF = (rF + dF) * fM / 10
tF=(rF+dF)βfM/10β
rF0 = aT * 100 / 10,000
rF0=aTβ100/10,000β
rF = rF0 * 5 / 10 => 0.5%
rF=rF0β5/10=>0.5β
dF0 = aT * 20 / 10,000
dF0=aTβ20/10,000β
dF = dF0 * 5 / 10 => 0.1%
dF=dF0β5/10=>0.1β
β
tF = 0.6%
β
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 poolβs 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.
π΄ Fee Reduction for Adding Liquidity
While all users can add liquidity to the PancakeSwap pool (or other supported DEXs), they canβt mint myXXX Tokens on their own. If there were to try, the slippage would be too large due to myXXX token transaction fees.
Itβs 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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