About the deflation tokenomics
Differences between other platforms and ARIES FINANCIAL deflation Tokenomics models
About Buy-back rate
Deflation models and buybacks on other platforms are usually 2–4% from farm rewards you use.
If the market is bullish, it can reduce selling pressure and support the token price.
However, if the market price is bearish, when the price of BTC or BNB dump, the price of native token will fall as well. Buyback will not be able to keep up with the speed of decline. Also, if the price of native tokens dump, APY also goes down.
New Strategy (USDT-BUSD_LP)
Buyback $AFIB token using 96% of the farm rewards you use.
In other words, a user who uses Wault Farm with ARIES FINANCIAL buys $AFIB using almost all of the rewards $WEX received. This can be called a huge “buy”.
The larger the TVL, the stronger the buyback power, the higher the token price, and the proportionally higher APY.
This 96% buying pressure is not defeated even in a strong bearish market.
(If there is more than a certain amount of TVL)
・Buy back $AFIB using 96% of rewards ($WEX) earned on Wault Farm
・ Buyback $AFIB and burns
・ The displayed APR is calculated and displayed based on the profit obtained when the received reward is sold in real time.
(Of course, if you sell the rewards received by all users immediately, the price of AFIB will go down.)
There are multiple options, such as
・ However, sell the rewards received to the user immediately, harvest and sell once a week, hold for a while, hold until you can migrate to $AFIX
In other words, it is unlikely that all rewards will be sold immediately, and it is a model that distributes selling pressure.
Even if everything is sold, the buybacked AFIB will be burned, so the number of circulations will decrease, and as a result, it can be expected that the price will rise.
Summary
For other platform, if the market runs bearish, the token price will decrease and the APY will also decrease. Even if TVL increases, APY decreases.
ARIES’s deflation tokenomics, Token price goes up in proportion to TVL
As APY and TVL increase, the price of tokens also increases, so it can increase proportionally, or at worst, maintain it.
