Ooze Finance Tax Hack: How I’m Collecting More Than 75% Kickback on my Top-Up Tax!

September sees a big push for Ooze Finance outreach as we spread the word about the project and all the impressive upgrades to the dApp and new utility for the OOZE token coming our way (I see you Walletgram, OXchange and Rafflez). With so much development to draw in new investors we also have some very juicy referral prizes up for grabs. But, if you’re like me and don’t have the network to secure the numbers it takes to win these prizes, I’ve got you. After all, this project is for everyone, whether you’re building an empire or playing the solo game. So in the spirit of Oozetember, I thought I’d share some tax avoidance alpha for y’all so you too can ‘win’ some OOZE just by Topping-Up. This hack pertains to Order of Slime NFTs and is best suited to players willing to put in a little extra work to keep as much Top-Up tax in their own pocket as possible (especially those that don’t want to waste precious XP on Stealth). Just a heads up: This gets a little convoluted and assumes you are familiar with the Ooze Finance dApp so if you’re new to Ooze Finance or just need more info about the terms and concepts herein then you should also check out the excellent and exhaustive whitepaper.

You’ll need a couple of things for this to work well for you:

1. Two Order of Slime NFTs

i) A small deposit NFT (20 OOZE is good but you can do whatever you like). For this example, let’s call this NFT ‘Wesley’. You should position Wesley under a guru with max kickback (@Broozer for instance, *me*). Buy SLIME to unlock 1 downline and set kickback to 75%.

ii) A large deposit NFT (as much as you can afford, up to 1700 OOZE). Let’s call this NFT ‘Martha’. You will need to mint Martha using Wesley as the referral. It’s very important to make sure you have bought SLIME for Wesley to unlock 1 downline before minting Martha in order to harvest all the XP coming your way.

2. A Spreadsheet

You will need to pay close attention to the Round Robin turns of your large deposit NFT and I find it best to use a spreadsheet for this. To begin with you’ll want to create a list of all 15 RR turns. Your RR list will start with your small deposit NFT (Wesley in this example) followed by whichever max-kickback NFT you chose to be that NFT’s guru (we’ll use @Broozer). From here you will have a number of gurus followed by the System Wallet and then the Contract Wallet. You want to list to level 15, keeping in mind that once the System Wallet has had a turn then the remaining turns in the 15 rounds will be the Contract Wallet. It helps to put the NFT kickback as well (more on this later). Your list might look something like this:

1. Wesley 75% KB
2. Broozer 75% KB
3. The_Mythjitsu 75% KB
4. CFF 25% KB
5. OGA 25% KB
6. System 25% KB
7. Contract 25% KB
8. Contract
9. Contract
10. Contract
11. Contract
12. Contract
13. Contract
14. Contract
15. Contract

So you’ve set up your NFTs and listed your Round Robin, but how do we minimise the amount of tax we pay when we Top-Up? The answer is in the Round Robin Tax Reward breakdown. In every round, 50% of the Tax Reward goes to the direct guru (Wesley) while the other 50% goes to successive gurus through 15 levels. This means that in the first round of the Round Robin, Wesley is eligible to receive 100% of the Tax Reward. With kickback set to 75%, we are left with a 25:75 split of the Tax Reward for Wesley and Martha and 100% of the Tax Reward in your own pocket.

Let’s now look at what happens in Round 2. We have 50% of the Tax Reward again going to Wesley, and 50% now going to Broozer. With both kickbacks set to 75% we are left with the following Tax Reward split — Wesley 12.5%, Martha 75%, Broozer 12.5%. This leaves a total of 87.5% of the Tax Reward in your own pocket.

Lets do the same for all 15 levels to show the total percentage Tax Reward in your own pocket.

1. Wesley 75% KB, 100% TR
2. Broozer 75% KB, 87.5% TR
3. The_Mythjitsu 75% KB, 87.5% TR
4. CFF 25% KB, 67.5% TR
5. OGA 25% KB, 67.5% TR
6. System 25% KB, 67.5% TR
7. Contract 25% KB, 67.5% TR
8. Contract
9. Contract
10. Contract
11. Contract
12. Contract
13. Contract
14. Contract
15. Contract

From this, it’s clear that Round 1 is our best round for minimising tax. It would make sense to try to Top-Up larger amounts in Round 1 and smaller amounts in other rounds.

Sounds simple enough, but how do we know when it’s Round 1? We can work this out by looking at three stats — The Rewards balance of Wesley, the Rewards balance of Martha, and the Available balance of Martha. We know that in Round 1 the Tax Reward split is unique and is 25% Wesley and 75% Martha. And from the whitepaper, we know that when Topping-Up the Available balance is taxed 10% and then a Tax Reward equal to 10% of the remaining balance is granted. Or in calculator-friendly form:

TR = AB x 0.9 x 0.1

As an example, with an Available balance (or Top-Up) of 20 OOZE, we’re left with a Tax Reward of 1.8 OOZE. We can monitor the Rewards balance of Wesley and Martha both before and after a Top-Up to see what percentage of the Tax Reward was granted to each, keeping an eye out for that 25:75 unique split. This is where the spreadsheet really comes in handy. For each round I’d suggest taking note of the following:

• Tax Reward
• Rewards before (Wesley)
• Rewards after (Wesley)
• Tax Reward Percentage (Wesley)
• Rewards before (Martha)
• Rewards after (Martha)
• Tax Reward Percentage (Martha)

Once we find Round 1 we then have to cycle through the rest of the RR, diligently recording each turn. It’s less important to record all the details above once you’ve found Round 1, but you need to check off each round so you don’t lose your place, it’s remarkably easy (and annoying) to lose your place. Importantly, you must allow at least 30 minutes between Top-Ups for a turn to be registered — as confirmed by Dev Leo. Now that we’ve cycled through Round 15 it’s time to pop your feet up for a day or two while that Available balance accrues. The next Top-Up will be juicy and 100% of the Tax Rewards will be yours. Hot tip: I find it beneficial to record all details of Round 15 and Round 1 so you can confirm you are in the correct turn of the RR.

So what does our Top-Up schedule look like? A good tax-saving and sustainable schedule would see you wait for 1–2 days for your Available balance to accrue, any longer than this and lost compound interest will negate some of the tax saving benefits. How quickly you cycle through the remaining turns of the Round Robin comes down to you and your other commitments outside of the Ooze dApp. One thing is for certain, the quicker you get back to Round 1 the incrementally richer you’ll be.

Ok, but is this even worth the hassle? Sure, kinda. Rough calculations based off a 4 day Round Robin cycle gives an approximate average kickback of 80% which, in our example above, gives an 18% increase in Tax Rewards verses a once per day Top-Up strategy. On a 2000 OOZE Balance we would see a difference in Tax Rewards of approximately 6.5 OOZE over the course of a month. Not too shabby a reward just for paying attention to how you compound and I haven’t even touched on the benefits of not having to waste precious XP on Stealth.

So there you have it, an awfully convoluted way to dodge the tax man and ‘win’ a few extra OOZE. This is what I love about Ooze Finance, there’s so many ways to play and something for every type of investor, you just need to get involved. You could stake and forget like a (Bio)punk, you could hustle your ass off and make bank off the referral rewards alone, or you could spend entirely too much time nerding out in the minutia of the protocol looking for an edge. Fun!

For the latest info on all things Ooze and where this exciting project is headed, please check out the Ooze Finance Telegram channel and have a read of the excellent article from Mr. G linked below. If you’re new to Ooze Finance and need more information on how to get started then the Ooze Finance dApp is the place to find it. If you want to give this strategy a go you might consider minting your small deposit NFT using @Broozer as your referrer. Good luck!

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