Wault Finance
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Wault Finance

How the new platform will work — Part 1

Our community overwhelmingly voted in support of the Merge and Rebranding proposal completed on November 1.

As a result, we are excited to release the first of several articles breaking down all aspects of the future rebranded platform!

This new model will have a token holder first approach. All protocol functions are designed to reinforce this mentality. Each feature is part of a NEW ecosystem that continually drives value back to the newToken, benefiting holders and stakers above all.

Initially, the new protocol will consist of the following products:

  • AMM DEX
  • Revamped Farms
  • Improved Emission Allocation Schedule
  • Bonds
  • Treasury
  • Revamped Stable Coin
  • Improved Launchpad
  • Governance Rights
  • Modified Pool Section
  • Lending
  • Single Merged Token

This article will focus on the first five items.

Automated Market Maker

The AMM DEX will use the same Uniswap v2 fork currently deployed through WaultSwap. However, the swap fee will increase to 0.3% from the current 0.2%. Half of this fee will go directly to the Treasury to bolster its reserves, allowing for cross-chain expansion and additional support for the revamped stable coin, which we will discuss in a future article.

Farms, Emission Schedule, and Allocations

Details of new token emissions

Farms (40% of emissions)

Farms will still play a role in this new approach. However, the structure under which they perform will change to enforce the investor first model. As a result, 40% of all emissions will be directed towards the farm section.

95% of these emissions will reward long-term holders auto compounding our native platform utility token and stable coin. As such, APRs will be significantly higher than we’ve been able to achieve previously — without threatening over inflation.

The remaining 5% will reward non-platform-based pairs such as ETH/BUSD, among others. This modification will lead to minimal holder dilution in the short term and allow for continued expansion over the long term.

Bonding (35% of emissions)

Bond utilization is one of the core changes we are very excited about as it dramatically benefits platform investors. Here, users can sell multiple liquidity pairs to the platform and, in return, receive dynamically discounted platform tokens throughout a 5-day vesting period at a rate of 20% per day.

35% of all emissions will be diverted to the bonding portion of the platform. The tokens from this emission allocation will be locked until the subsequent bonds are purchased — rather than minted during the purchase cycle. As such, inflation is mitigated until there is the appropriate TVL to utilize the introduction of the locked tokens.

Given the finite distribution for this section, this will promote significant and rapid TVL growth, which subsequently allows for stable long-term developments. In addition, this POL model (Protocol Owned Liquidity) will help create a price floor for the platform-specific token that will add additional stability mechanisms to our stable coin and help mitigate wild price swings. This bonding process will also increase volume through our swap, which will incur the 0.3% fee, thus generating additional revenue for the platform, further backing the newToken and Treasury.

Reserve Fund (25% of emissions)

The remaining 25% of emissions will be allocated to what we call the Reserve Fund. This Reserve will act as a kind of bank for newTokens that will allow us to expand cross-chain quickly. This allocation would be what provides the initial attractive APRs on new chains.

Treasury

All platform utilities will feed funds to the Treasury, ensuring growth and lasting value for our holders. As such, the Treasury will be the center of this new protocol and the investor first model.

The Treasury will automatically create and support a floor price for the newToken through buybacks of the newToken at a predetermined floor price, using funds from the bonding mechanic. This, in return, will contribute to the stability of our stable coin and ensure both tokens maintain their value over the long term. Furthermore, through this Protocol Owned Liquidity model (POL), the larger the Treasury becomes, the higher the backing price and value for the newToken, creating price security for participants.

We are excited and grateful to have you on this journey with us!

Contact us

If you have any questions or thoughts, please join us on our social networks:

Telegram | Discord | Twitter

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