AnyStake Ecosystem Mechanics
The question on everyone’s mind. How do AnyStake and Regulator work?How are the pools going to pay out rewards?
The AnyStake Ecosystem is made up of 3 core contracts: AnyStake, Regulator, and Vault. The simple breakdown of roles is as follows:
- AnyStake: Stake (almost*) any ERC-20 to receive DFT rewards
- Regulator: Stake DFTPv2 to receive DFT rewards
- Vault: Manage DFT rewards for AnyStake and Regulator
( * ) Why “almost” ? Because not all tokens are safe to use. Some can be minted, others have security flaws that could harm our protocol. We will vet the list and submit propositions to the community.
Vault holds all DFT rewards and manages buybacks on Uniswap. Vault is not directly interacted with, but is the backbone of the AnyStake ecosystem.
Upon launch, Vault will replace the Treasury address and will begin to receive the 2% fees charged on every DFT transfer and yield trading rewards.
Vault maintains two types of rewards: “bonded” and “trading” rewards:
1. Bonded Rewards will be added to the Vault on launch (60,000 DFT) and will be distributed linearly over ~6 months (1,036,000 blocks).
2. Trading Rewards consist of all transfer fees and buybacks triggered by AnyStake and Regulator withdrawals. Trading Rewards are immediately distributed on the next interaction with AnyStake/Regulator.
Vault distributes rewards to AnyStake and Regulator based on a multiplier, initially set to 70%. This means that AnyStake will receive 70% of incoming rewards (bonded and trading), while Regulator receives the remaining 30%.
AnyStake allows you to stake (almost) any ERC-20 to receive DFT. AnyStake charges a governable “exit fee” (5%) upon withdrawals to buyback DFT tokens and add them directly to the reward pool. Additionally, when staking into AnyStake, users receive 1 DFTPv2 as a transaction reward.
AnyStake has 3 core pools:
DFT (pool 0),
DFT/ETH UNI-V2 (pool 1),
and DFTPv2/ETH UNI-V2 (pool 2).
Contrary to other pools, these core pools do not charge a withdrawal fee. Pool 1 and Pool 2 will be incentivized at 15x (tbd) rewards relative to the other pools to compensate for Impermanent Losses (IL) risks.
(Note: for more information about Impermanent Losses, please use Google)
The DFT Pool (Pool 0) mostly serves as access control to “Preferred Pools”.
Users who stake into Pool 0 will be able to stake additional ERC20 Partner tokens (without Impermanent Loss risk). A user can only deposit or withdraw their stake from a Partner pool if they maintain the associated VIP Staking amount. Read more about Partner Pools here: https://defiat.medium.com/anystake-partners-protocol-model-f3f8f9c4077d
Additional tokens will be added to AnyStake through our Partner Model and Snapshot Voting.
Regulator allows you to stake your DFTPv2 to receive DFT. Regulator charges a governable “exit-fee” (10%) on withdrawals similarly to AnyStake. This fee is used to “regulate” the price of DFT and DFTPv2. Regulator does this by storing a governable price peg of DFTPv2:DFT (10:1).
i.e. the price of 10 DFTPv2 should equal the price of 1 DFT.
In order to play both sides of the market, Regulator saves 30% of incoming rewards (9% of total Vault rewards with a 70% multiplier) as a “buyback balance” for DFTPv2 buybacks.
Based on the prices at withdrawal, Regulator will perform one of the two following actions:
Action1: If the price of DFTPv2 is above or equal to the peg, i.e. the price of 10 DFTPv2 is greater than or equal to the price of 1 DFT — Use the fee amount to sell DFTPv2 to Uniswap and buy DFT. All purchased DFT is immediately added to the reward pool.
Action2: If the price of DFTPv2 is below the peg, i.e. the price of 10 DFTPv2 is less than the price of 1 DFT — Use buyback balance to sell DFT to Uniswap and buy DFTPv2. The purchased DFTPv2 and fee amount are then immediately burned.
Regulator provides a way to control the inflation of the DFTPv2 while also binding the price movements of DFT and DFTPv2. It also provides arbitrage opportunities to the trading community, thus generating more volumes, and more block rewards.
“Long Medium, Wen Launch!?”
As soon as we get back our audit remediation from Hacken!
Audits are an iterative process, which require feedback from both sides. Writing secure code is not always simple, especially when dealing with the complexity of the AnyStake Ecosystem.
The DeFiat Team would rather launch secure, externally reviewed code at the cost of time, especially when dealing with user funds.
— The DeFiat Team