Sustainability and Apy
As you all know, our contract contains a combination of code from 4 different contracts (which mainly includes code from Sphere’s contract). Just to be clear, Sphere’s contract was audited by CertiK and Solidity. Our developers took a full week to alter the original contract, and removed over 1000 lines of code that we deemed irrelevant for our protocol. We sent the improved code to be audited by Peckshield, but they failed to spot a mistake in the contract which includes the rebase function (shown below).
This is the rebase function in our contract. The rebase function should use “totalSupply” instead of “circulatingSupply”, so the APY wouldn’t be affected by the tokens held by dead wallet addresses, but in reality, it is.
As you may know, we initially planned to raise 1250 $BNB to have 750 $BNB in liquidity, which would lessen the impact of bigger buys and sells in the long run. But we decided to reduce our Hardcap to only 760 $BNB between the Whitelist sale and the Public sale (which was held on Pinksale). This was to ensure that we had some more buying pressure at launch.
Since we lowered the cap by 490 $BNB, the number of tokens in circulation was higher than it was supposed to be. Some of you raised your concerns on this issue, & also about the unlocked dev wallet holding 56% of the supply. The dev wallet contained leftover tokens we no longer needed (since the WL & Public sale cap was reduced) .
After 4 days of intense work and sleepless nights, we decided to put the community’s concerns to rest & burned some of the leftover tokens (20,000,000$ADM to be precise).
Now that we burned 30% of the supply, the protocol’s circulating supply is way lower than what it was to have an APY of 122,222%, it was not part of the original plan but as the supply decreases tokens are now more valuable.
As the first priority of this protocol is to protect our user’s security, we removed the “mintAny” function which would allow us to mint tokens whenever we wanted to.
This indeed reduced the rebase rate all the 30 min from 0.0405861% to 0.027521%, about 35% (the part of the supply we burned), lowering the daily APR from 1.92% to 1.32% thus increasing the roi from around 40 days to 55 days and decreasing APY from 122,222% to 12,309%. This makes our protocol a lot more sustainable in the long run. Also, as a user you won’t notice the change in the APY because it was irrelevant before the last month of Auto-compounding.
If the APY would have stayed the same, the protocol would have printed too much $ADM and the price would have suffered from inflation, it couldn’t be sustainable for anyone involved during 1 year.
On the team side, we are sure a protocol can’t claim to be sustainable and keep printing this much. Believe we do our best to bring you the smoothest protocol on the market, the _rebase() function will now allow us to have total control over the APY in the future and continue as we thrive to be more and more sustainable if we decide to do so.
Now that APR has been reduced and the first porposal about portfolio allocation for crosschain farming submitted to holders, we can start building something big that is here to stay and rewards those who trust the team.
We are going to build the most sustainable protocol on the market.