CrocBot revenue sharing specs
We’re glad to introduce the full specs of the CrocBot staking & revenues sharing model. Unlike other Bot tokens, CrocBot has unique tokenomics that aims to redirect all of the project’s value to the token and its holders.
We had to innovate in the staking tokenomics to propose a model that would allow both:
- A way to get real-yield revenues in a decentralized and secured way,
- Increased liquidity for CROC/wETH
- Buy-back mechanism for $CROC.
- Instant unstaking to preserve volume
Introducing xCROC and xCROC-LP
Our staking contract is an implementation of the ERC-4626 vault contract, the standardized vaults allowing protocols to easily redistribute yield to token owners, you will be able to stake both your CROC and CROC/wETH LP to earn some xCROC or xCROC-LP, these tokens represent shares of the vault in which our contract will distribute the proceeds of the sale taxes.
The revenue-sharing part of the tax will be periodically used to buy back some CROC (66% of the revenue-sharing part) and to add some liquidity (33% of the revenue-sharing part). The $CROC and the LP will be then added to their respective vaults and stakers will be able to earn a real yield on their staking.
The ERC-4626 has been designed for an optimized yield-bearing vault, it also allows stakers to “unstake” and redeem their CROC instantly, we don’t want to affect volume by too strict unstaking rules that’s why ERC-4626 is our best option.
Rewards will be vested over a 2-day period to prevent abuses and people manipulating their stake to earn rewards without actually staking their tokens. Staking and redeeming will be made available through our dashboard (see below). xCROC contracts are currently being tested on Goerli Testnet, we’re hoping to release it in the coming days, shortly before the Swarm release.
Example
Here’s a concrete example of how it would work:
Bob has 500k $CROC, he wants to stake his CROC to farm on ZkSync and earn tax sharing. He can go to our dashboard and stake his $CROC. Let’s say that the CROC:xCROC ratio is 0.95, he will obtain 475,000 xCROC.
Later today, after a busy day of trading, the rev sharing contracts buy 2 ETH worth of CROC on the market and deposit it to the xCROC contract. The amount of CROC redeemable for each xCROC increase and Bob can decide to redeem its increased shares at any given time 🎉.
Technical specs
The xCROC and xCROC-LP tokens have been forked from the audited Revenue-Distribution contract. Tax proceeds will be sent to an aggregator contract that will have the mission to periodically convert the accumulated ETH to $CROC and CROC/wETH LP before depositing to the contract with a 2-day vesting. Here’s a graph showing how rewards are handled and xCROC shares calculated:
