(Revised) 4Belt Compensation: remedy 4BELT (r4BELT) Details
EDIT: The contract address has been changed.
After announcing our intention to change the Compensation Plan last week, we were met with an overwhelming number of responses. Some were positive, some were negative. While we knew we could not please everyone, as is often the case, we listened to what our users had to say, trying to figure out a way to make our compensation plan better for everyone.
We’ve made changes to our original compensation plan that address the issues of BELT buyback, impermanent loss, division of yield between different pools, and fair compensation to 4Belt users affected by the attack.
Here are the details of the finalized decisions on major points of the 4Belt Compensation Plan:
BELT Buyback Fund
As the reward mechanism and governance token of Belt Finance, BELT tokens serve a crucial role in the entire ecosystem. For this reason we have decided to keep the BELT Buyback Fund as initially announced, with a starting commitment of $3M USD.
While many of our users asked us why we couldn’t simply just give out more BELT to the affected users, there is a glaring error to this method — the negative impact it would have on BELT holders. Having a plan that would only compensate affected 4Belt users with BELT tokens might quicken the compensation process, but would continually create a downward price pressure on BELT, negatively affecting holders and the protocol as a whole.
For us, choosing a compensation mechanism that would benefit just one set of our investors while fully knowing the negative consequences it would have on another and Belt Finance as a whole was not an option. Clarifying this allowed us to stick with the BELT buyback plan as initially announced.
The BELT Buyback Fund will serve to counteract downward price pressure, as well as incentivizing the BELT token to speed up compensation.
- Buyback Frequency: 2 times every day at random intervals (60 times for a duration of 1 month)
- Start: Will be announced separately
- Size: $3 million USD
- We are planning to add more to this buyback fund in the future
Liquidity Pool
Listening to our users is what made us realize that a Liquidity Pool between 4Belt-r4Belt was not the answer. No matter how lossless the pool was, it created a division of yield between old and new 4Belt users, as well as a complication for our users in choosing which pool to invest in. We redesigned the pool to leave 4Belt as profitable as it has always been while also yielding compensation to r4Belt holders. There will not be a separate pool for r4BELT. r4BELT will be used as a tool to give additional yield on top of 4Belt yield as compensation for affected users. We deeply thank our users for their honest feedback that led to this improvement.
4BELT:r4BELT ratio and Compensation
Liquidity mining with r4BELT will be activated for the amount of r4BELT or 4BELT, whichever has a lower balance. If you have a lower amount of 4BELT compared to the r4BELT you receive, you will receive the boost for the amount of 4BELT you have. This is not an LP, but a conditional compensation release. The reasoning behind this mechanism is not to lock in our users, but to correctly target and compensate our loyal users that support the platform. This will help sustain and grow the platform as a whole and make the compensation more successful and expedited.
The users who were previously using 4BELT tokens will not be greatly affected in terms of BELT rewards, as their 4BELT tokens will be generating close to the same amount of BELT rewards they previously were. The only difference now will be that their r4BELT tokens will be generating additional yield, to compensate for losses incurred.
The additional yield generated by r4BELT will amount to about 8% of the overall emissions. On top of the base amount of 20% from the 4Belt Pool, there will be an additional 5% and 864 BELT/day (this is from the team build allocation, amounting to 67% of the unlocked portion). In total, this amounts to about 8% of emissions for a total of about 28% for r4BELT users. The actual amount received by individuals will vary depending on how many users decide to take advantage of the compensation plan. If fewer users decide to take advantage of the compensation plan with r4BELT, the amount received by users that do will be highly advantageous.
New users to 4BELT will be able to enjoy high yield, albeit without the additional yield from r4BELT compensation. They can, however, buy r4BELT tokens from the market, and take advantage of r4BELT compensation yield as well.
This is the new mining distribution rate breakdown for Belt Finance on BSC.
remedy 4BELT (r4BELT) Token Info
- Name : Belt.fi remedy 4BELT
- Ticker: r4BELT
- Decimals: 18
- Address : 0x442d5E02276954cA61F272635Cdad07dD7992120
- Total Supply : 724,177,567
- Snapshot Block: the block immediately following the last attack (block 7839266)
- Total 4Belt LP supply at snapshot : 721918636.181612831483029239
- beltBUSD supply at snapshot (apart from 4BELT contracts) : 477995.84
- For each affected 4BELT LP, 1 r4BELT will be minted and distributed proportionally
- For each affected beltBUSD, 4.7258346838 r4BELT will be minted and distributed proportionally
- Total supply of r4BELT = 721918636.181612831483029239 + 2258929.320801866 =724,177,565.5024147
- To receive r4BELT, you must have had at least 1 4BELT LP token (either held or staked) or 1 beltBUSD (either held or staked) at BSC block 7839266
Autofarm/Beefy/Planet and other Yield Optimizers
As for Yield Optimizers/Aggregators, how they decide to approach this is completely up to them. We will make sure that every user on the platform we know about and are in contact with will have r4BELT tokens airdropped to them, but we believe that it is the duty of the service to make sure their users can take advantage of the r4BELT token and compensation. However, as every yield optimizer has a different set of operating procedures and conditions, we cannot guarantee that they will work flawlessly with r4BELT. Please consult the protocol(s) you are using to see how they plan to work with r4BELT. As of now, the most definitely way to receive your compensation yield is through using Belt.fi.
About distribution to users of yield aggregators (Autofarm, Beefy, Planet, Swamp, Wheat) and other contracts
If you are a user who has staked in the following contracts of Belt Finance/ external yield aggregators, you will be sent r4BELT tokens directly to your wallet.
- BeltStaking: 0x7341579c04ae64acdb116f1afc7ce26076090f68
- Autofarm strat: 0xa59d32a79297511791784044cf95cffc91845438
- Beefy strat: 0x5df9ce05ea92af1ea324996d12f139847af3dfc7
- Planet strat: 0xf5b92242842f820d3c0b74eb7d4e9fd200a38696
- Swamp strat: 0xd8f5635914982d891ae2b778bec180dcaca5bdfe
- WheatStakedToken: 0xeb8e1c316694742e7042882be1ac55ebbd2bcebb
- Aries strat: 0x59c669005b3bf8980b45e3f988b7be500027be2e
If you are a user of Golff, you will be distributed r4BELT by the relevant team as we plan to airdrop the token to their wallet.
Schedule
- (June 18) r4BELT will be distributed to affected users (These will be sent directly to wallets. You may need to manually add the r4BELT token to your wallet to see your distribution.)
- (June 24) Mining rate distribution will begin for r4BELT holders who hold 4BELT tokens with a balance exceeding that of their r4BELT balance.
TL;DR / FAQ
Q. Is it possible to sell the r4BELT on PancakeSwap? What will the price be?
A. Yes, it will be possible to sell on PancakeSwap. The price of r4BELT token is undetermined as of yet, and will be determined by the market.
Q. When will the airdrop take place?
A. June 18th, 2021. Exact time will be announced through the Official Belt Finance Twitter.
Q. Will my Autofarm/Beefy/Aggregator of choice support r4BELT?
A. We believe they should, but it may require additional effort on their part. Please consult the protocol you are using to see if they will be. Regardless of the protocol you were on, however, you will still be receiving r4BELT, which means that if they do not support r4BELT, you can still come to Belt.fi for your additional compensation yield.
Q. Can I sell of part of r4BELT and still receive compensation? Or have more 4BELT than before and receive compensation? What will happen if I have less 4BELT than r4BELT?
A. Yes, you have a number of options available. You can sell off half of r4BELT to lock it in with half of 4BELT you had from before. It’s also possible to have more 4BELT, but you will have to deposit the remaining 4BELT into regular 4BELT pool. You can have any number of 4BELT and r4BELT as long as you deposit in 1:1 ratio, and either a) sell off the remaining r4BELT, or b) have the rest of 4BELT deposited in normal 4BELT pool.
