Note: This story was originally published mid-December. This is a republication following our Twitter & Medium hacks.
Dear DeFiat Community,
Today is an important day for DeFiat. It’s the day we release the Anystake Rewards Model. AnyStake will be the core DeFi offering from DeFiat and has been in the works since the token was released back in August. It is now finally taking shape and form.
As a reminder, DeFiat’s AnyStake protocol allows users to stake (almost) any ERC20 token and earn interest on their tokens. The spot price of the staked token will be used to add to the USD staking balance of each user at the moment of the staking. Whatever you stake, the trading price will be the oracle that will define how much you will get in rewards.
After UniSwap began supporting tokens which trigger burn/fee events on transfers, the team enabled this feature on the DeFiat token (DFT). Now, every trade or transfer of DFT causes the total supply of DFT to decrease and a fee to be paid out to the DFT Treasury, which increases staking rewards. The concept of AnyStake relies on creating SUSTAINABLE farming opportunities. Prior to this update, AnyStake was much more of a challenging task. However, now that these features are supported on our main market, we can use DFT to compliment and even increase farming yields.
We want to highlight the 3 main elements of the Anystake model:
TLDR: Stake popular ERC20 tokens, not Liquidity Provider (LP) tokens…staking made simple!
LP tokens can generate impermanent losses based on token fluctuation and require many steps to be generated. Additionally, LP tokens are only redeemable on one exchange! We love Uniswap at DeFiat, but if the Uni frontend goes down, it wouldn’t be so easy to redeem your underlying assets!
→ Anystake strives to keep things simple. Just stake an ERC20 token in Anystake to earn interest on your tokens in BOTH the staked ERC20 and DFT. There are a large choice of tokens to stake, so you will be able to ensure that your tokens are working FOR YOU.
TLDR: perpetual rewards, using the tx fees from DFT!
One of the main focus points during AnyStake development was how to model the environment with sustainable rewards. After much brainstorming, DeFiat is proud to introduce our dual model reward structure for AnyStake, based on accrued tx fees and an initial distribution scheme.
Initial load of 30k tokens to ensure incentives for stakers (will cover gas costs).
Per transaction rewards accrual, bonded weekly
Additional “end 2020” program where the original rewards not taken from the legacy DFT pools will also be poured into AnyStake!
Note: Adding time to time non-transaction-fee based rewards from the treasury will also grant Anystake some immunity to volume attrition. Ensuring that even if tx-based fees are low, rewards keep flowing. Also note that we already accrued tx fees since DFT moved to a fee-on-transfer model. These will be used for Anystake initial load.
Buy Pressure Innovation:
TLDR: Staking fees suck, unless they are used for buybacks…or redistributed!
One issue with farming is the risk of entering into a vicious circle of diminishing returns. After the hype, volume drops and rewards start to drop. People exit the pool or the project, making the price drop.
Price drops generate a risk on token holdings put into staking, as potential losses may incur. As a result, some users exit the staking program, generating more sell pressure. The machine starts to stall.
AnyStake solves this buy pressure by rewarding stakers for staying in the pool and implementing mechanisms to keep token price sustainable. To accomplish this, Anystake will charge a variable fee, pegged at 5% to start, on both deposits and withdraws.
These fees will be used in 2 ways:
50% will be used to directly buyback DFT on Uniswap. This will push the price of DFT higher, increase volume, and generate more trading rewards. A virtuous circle. All buybacks go directly to the treasury to be added during reward deposit events.
50% will be taken as a fee in the native ERC20 and redistributed to stakers.
For an example, let’s consider Alice. She loves DFT and is excited about the AnyStake release.
When AnyStake launches, Alice already has 1,000 USDT ready to deposit. After approving the AnyStake contract, Alice deposits her entire stack of 1,000 USDT. Because there is a 5% fee on deposits, 3 things happen in her transaction:
1) 25 USDT (2.5%) is converted to WETH and is used to buyback DFT from Uniswap when the market conditions are ready.
2) 25 USDT (2.5%) is proportionally distributed to all other USDT stakers, based on both balance and time spent in the pool
3) 950 USDT (95%) is added to Alice’s staked USDT balance in AnyStake
Anystake is around the corner! We are entering the final stages for the front end integration and testing. We took time to polish the token model in order to give stakers more incentives.
Many of you ask why we take so long to deliver Any Stake:
we want it to be great.
And great does not only mean a great UX with great rewards. It also means a great TIMING to be launched.
Markets are in limbo (BTC in the 18–20k range), and crypto “investors” still rush on the latest-but-not-greatest ape coin hoping for a quick x10 (and no rugpull…). We can only launch this new protocol ONCE. So we want to hit the market when it’s prime.
Thank you for your understanding, and thanks again for your continuous support.
— The DeFiat Team