An overview of FUTURES cashflow engine
Note: There have been some updates to FUTURES, read the article linked below!
FUTURES is a cashflow engine that allows you to deposit a stablecoin and earn predictable yield. You send BUSD in, your receive BUSD out, at a steady rate of 0.5% daily.
This functions in a totally different manner than traditional ROI dApps; it is designed to be sustainable over the long term, with no advantage given to early adopters. You are never too late to earn with FUTURES. You are rewarded for your time and money in the system, not for being early and taking advantage of those who enter later.
There is a minimum deposit of 200 BUSD, and the only way that you may compound is by making additional deposits of at least 200 BUSD. You must compound at least once in order to earn any profit. This help keeps the system sustainable, as there is no way to compound without contributing to the system. When you make a withdraw, your earnings are deducted from your balance. This means that you can’t just compound your way up to a high balance for free then deduct earnings endlessly, as most ROI dApps allow (while they are solvent).
An example:
- On day one, you deposit 10k BUSD. Your 10k BUSD is locked and cannot be withdrawn all at once, preventing a bank run. You immediately begin earning 0.5% per day, or 50 BUSD, which shows up in your “available” column.
- After i.e. 30 days, you now have 1500 BUSD in your “available”. You now have a choice, you may either withdraw the 1500 BUSD, bringing your balance down to 8500 BUSD, or deposit an additional 200 BUSD to compound it, bringing your total to 10000+1500+200 = 11700 BUSD. From that point on you would be earning 0.5% daily on 11700 BUSD, or 58.5 BUSD per day.
- Note: you may compound or withdraw on any schedule that you prefer. Your earnings grow by 0.5% per day until they equal the lesser of the balance or 50k BUSD.
As you can see from the example, you need to compound at least once in order to generate any profit from the system. Without compounding, you’re merely providing an interest free loan to the system. With compounding, you can build a rather large balance fairly quickly. No matter what you do, it takes a minimum of at least 200 days to earn your entire balance back in the “available” column, which prevents the sort of bank runs where everyone just panics and claims all at once. That cannot happen here, by design. It would take everyone participating to cease all activity, no compounding, no new deposits, everyone waiting 200 days, then everyone withdrawing all at once, for the FUTURES system to be drained. To say that sort of mass behavior is unlikely would be an understatement.
There are many different strategies available to compound for X days and then claim after Y days, or just compound for a while to build your balance up before claiming, and I may touch on that in a future article however it is a little outside the scope of this writing. A more pressing question might be:
That sounds fantastic, but how is this sustainable?
You would be wise to question the sustainability of such a high interest rate, as the money has to come from somewhere, right? Most ROI dApps that promise daily rewards are just ponzi-esque offerings in that they pay existing investors with deposits from new investors and dilute the value of the payment token.
FUTURES is very different.
The key to FUTURES success lies with the ELEPHANT token and its treasury, also known as “Bertha”. We’ve covered Bertha in a previous article, and if you haven’t read that yet, you should go back and begin there.
When BUSD is deposited in FUTURES, the majority of those funds are used to purchase ELEPHANT token and deposit it into Bertha. This causes the price of the ELEPHANT token to rise and makes the treasury more valuable. Because both crypto traders and long term investors are always looking for an appreciating asset, they see this rise in ELEPHANT price and buy in, causing the price to rise even further, paying their 10% ELEPHANT tax to the treasury, fattening up Bertha even more.
So the FUTURES deposits both directly increase the ELEPHANT price as well as generate additional FOMO which pumps the price even further! Now ask yourself what happens when value needs to be extracted from Bertha to pay for FUTURES liabilities? Due to the additional buys and taxes paid, the ELEPHANT token is more valuable now than it was at the time that the FUTURES deposit was made, so fewer tokens need to be sold in order to cover a withdraw of the initial deposit, leaving Bertha (the treasury) with more tokens than she started with thanks to the taxed contributions of buyers, and any value which they might yet be contributing by holding the token.
So long as people desire predictable earnings and thus keep depositing into FUTURES, it will help prop up the price of ELEPHANT. So long as there are people looking to invest in an appreciating crypto asset, ELEPHANT will remain an attractive buy and its taxes will help fund FUTURES.
I know this sounds a little like circular logic, but keep in mind that those 10% buy and 10% sell taxes are what helps fund all of this value multiplication.
The behind the scenes wizardy of smart contracts compresses all of the stored value into the ELEPHANT token and allows a nice, symbiotic relationship to exist between ELEPHANT traders, ELEPHANT holders, and FUTURES account holders. The varying time horizons and risk tolerances of investors are used to strengthen and support one another in a true community bank.
There are some progressive rate modifiers which kick in for those with balances in the 50k+ range, and there is a maximum personal TVL of $1M BUSD. This helps keep the system sustainable for all. I would definitely suggest reading this guide thoroughly prior to depositing any funds into the system. Remember, once you make a deposit, it takes a minimum of 200 days to completely withdraw it. This is NOT something that you get into and out of quickly, it is designed more for long term investors.
FUTURES is the opportunity to earn steady, predictable yields in a community bank designed to deter bank runs.
Disclaimer: None of this should be considered financial advice, I am not a licensed financial advisor and present this information for educational and entertainment purposes only. All crypto involves risk and typically proves most fun when you don’t invest more than you’re willing to lose. I may have a financial interest in the product(s) referenced and could benefit from your purchase.
