π°How does Finance Protocol earn high APY backup revenue?
Finance Protocol allows its holders to significantly increase their investment and income as the protocol automatically rewards its holders with 907,032.14% APY every minute.
To achieve such a huge APY, Finance Protocol uses the following series of mechanisms:
1. The Protocol will use Defi 3.0 Multichain Farming to exponentially increase the Risk Insurance Fund at a rate of ~100% per year or more to better support the $FP token price floor in USD.
After analyzing a competitor, we came up with the idea of ββcreating Risk Insurance Fund and Treasury Fund to ensure a stable value of the $FP token through multi-chain farming.
Unlike Titano, which has a static LIT fund that does not make profit, Finance Protocol uses Risk Insurance Fund and Treasury Fund to grow stable tokens through multi-chain farming. Risk insurance funds are connected to other EVM compatible blockchains such as Avalanche, Fantom, Solana, Metis, Polygon, etc. for farms with the highest APY, and then profits are returned to FP and returned to RIF.
Finance Protocol is looking for revenue opportunities across various protocols and networks. This means that FP funds do not stay completely on the BSC network, money from the treasury will be redirected to many other networks such as Fantom, Avalanche, Polygon and any new blockchains that may have more profitable farms and significant APY. This strategy allows Finance Protocol to generate at least ~125% extra profit per year to better support the $FP floor. That is why our project is able to provide a higher APY compared to other projects.
2. Liquidity owned by the Protocol
The use of protocol-owned liquidity (POL), combined with the underlying mechanics of Auto Staking, is a key differentiator that allows Finance Protocol to generate an additional revenue stream (PancakeSwap gives 0.25% of each transaction for liquidity providers), which allows it to provide additional added value and increase APY for its token holders.
3. Slippage: 14% commission for buying and 17% for selling.
Our protocol charges 14% trading fee for purchase of $FP tokens and 17% for sale of $FP tokens. The funds received are used as further support for the protocol and its liquidity. So that everyone can sell or buy the required number of tokens at any time.
4. Automatic tokens burning
Based on experience, we estimate that 0.3-0.6% of the total circulating supply of $FP tokens will be burned daily. This percentage will be constantly changed based on our automatic burning algorithm. It will be updated daily depending on the number of holders and tokens they own.
By using automatic burn program, we intend to avoid inflation that could result from the constant growth of circulating tokens. Thus, if the market cap remains stable, value of your tokens in USD will increase, and if the market cap increases with arrival of new investors, then the value of your tokens will increase even more due to the fact that your share of the total supply will increase daily.
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