Sponge Finance (finally!) introduce Vampire Layered Farming !
Hello Spongers ! So it is finally ready, our very long waited layered farming feature. Goal of the article is to give you details about fees distribution but also the initial pairs and multipliers for this first layer.
I invite you to read last medium article which introduce the concept of the feature. Link: https://decentralized-stef.medium.com/why-sponge-finance-layered-farming-will-save-the-world-b134fc44d1bb
Anyway here is a short description of our ‘Vampire’ Layered Farming feature :
- Basically a layer is like a full new dapp, each layer is identified by a number (1 for the first layer, 2 for the second … etc). Each Layer emits the layer token : $Siphon1 for first layer, $Siphon2 for second… Each Layer has specific farms, but $SOAK will always be able to farm $SiphonX (where $SiphonX is the current layer token).
- We plan to create a new layer every 10 to 20 days.
- $Siphon1 (and probably other layer tokens) will have a 22K max supply. 2k will be provided as initial liquidity and 20k will be emitted during 40 days. This means only 500 $Siphon1 token a day !
- Native token LP Farms (like SPG/BNB, STEAM/BNB, SOAK/BNB) have NO deposit fees, however other farms have a base 4% deposit fee. This deposit fee can be reduce to 3% if you are a VIP $SPG holder (100 $SPG) and 1.5% if you are a ELITE $SPG holder (250 $SPG). The fees will help buying back and burn $SiphonX and $SOAK. Some $SPG will also be bought and redistribued through a $SiphonX pool.
- Once a new layer is out, all deposit fees from the previous layers will be set to 0% !
- Now the ‘draining’ aka ‘vampire’ part ! When you stack into non-native LP Layer farms (like BNB/BUSD), you will earn $SiphonX, but a strategy contract will also stack your LPs into another ‘safe’ platform farms (for now pancakeswap.finance and blizzard.money that are two platform that have our trust). Earning from these farms will be compunded and locked into these platforms, and the generated earnings by those compunded and locked liquidity will buyback and burn $Siphon & $SOAK but also add some liquidity to $Siphon. This should provide infinite buy pressure and deflationnary mechanism on $Siphon by raising the price and lowering supply.
This means $SiphonX can be considered as long term holding token by its tokenomic, even after the full emission is done the token should keep rising in price with the daily buybacks ! And don’t worry we have some more features, including older layer tokens utility, to come. This is only the begining.
Here are the fees redistribution :
Fees earned by deposit fees (fees coming from users):
- 15% buy back and burn $SOAK
- 20% buy back $SPG to be distributed through a $Siphon pool
- 45% buy back and burn $SuphonX
- 15% liquidity on $SiphonX/$BNB LP (PCS V2)
- 5% dev wallet (for further liquidity and dev)
Fees earned from locked LPs (fees coming from draining other platforms) :
- 20% for liquidity on $SiphonX/$BNB LP
- 20% auto compounded for more locked LPs (so more & more rewards)
- 10% buy back and burn $SOAK
- 40% buy back and burn $SiphonX
- 10% dev wallet (for further liquidity and dev)
Here are the Layer 1 Farms and multiplier :
- With the ‘Soak Sink’ you will be able to farm $SiphonX with $SOAK with x20 multiplier
- $Siphon1/$BNB LP = x15 multiplier
- $Siphon1/$Busd LP = x15 multiplier
- $Cake/$BNB LP = x10 multiplier
- $Alpaca/$Busd LP= x5 multiplier
- $BNB/$Busd LP = x10 multiplier
- $xBLZD/$BNB LP = x5 multiplier
- $xBLZD/$Busd LP = x5 multiplier
- $SPG/$BNB LP (PCS v1) = x3 multiplier
- $SPG/$BNB LP (PCS v2) = x2 multiplier
- $SOAK/$BNB LP v1 = x5 multiplier
- $STEAM/$BNB LP v1 = x5 multiplier
Initial liquidity :
It will be set at 20K BUSD for 2K $Siphon1 !
SO WEN !?
We are aiming Wednesday 05/05 at 19 UTC… but as we are already super late, we are burning 20000 $SOAK for each day of delay (starting of yesterday as we were supposed to release last week). This will motivate us and compensate a bit $SOAK holders for their huge patience !
What about LP migration ?
You have probably seen that we haven’t started migrating our liquidity. Well this is mostly because all our buy back mechanism are coded into the tokens smart contracts and are using PCS V1 router. For example the 2% tax of $SOAK buying back $SPG and $SPG/$BNB LP, and same for $STEAM buying back $SOAK.
So this wasn’t for us just a migration of liquidity and farms, we need a full migration of our tokens (exept $SPG), which means also a migration of our masterchef contract. This is why we have been also working on a v2 of Sponge Finance with a new economic model which will come in the next weeks, so stay tuned but I’m sure you’ll be happy 😘.
That’s all for now, more informations will be provided on our telegram channel : https://t.me/SpongeFinanceChat