So, who are we?
Well we’re a new European team, which aims to release a couple of DeFi projects. And our starting point with that will be AxoDeFi.
AxoDeFi will be one of many yield farming services, but what distincs AxoDeFi from the rest are a couple of nifty little features.
Our main feature is a reward pool, which will collect most of all taxes paid and a fraction of all minted tokens, accumulates them and then distributes them after a set time period. This reward pool, will not only yield our native Lotl token, but also BUSD.
Our first idea was distributing all different tokens we will gather through taxes, but that would result in a tremendous gas cost and it would spam your wallets full of well different kinds of tokens. So we will automatically swap all paid taxes that differ from our native token to BUSD and after claiming it’s yours, it’s as simple as that.
But that’s not the only feature our reward pool has. You might know about that one from some defis that offer vaults. The longer you lock your tokens for, the higher the APR you will get on the locked tokens will be. We adopt a similar approach for our reward pool but do not require definitive locking of your tokens, nor will we have a withdrawal fee. We introduce a holding factor to our reward pool. Simply said, the longer and more positions you hold in different farms or pools the higher your share of the reward pool will get. We do that by storing your first interaction with a pool and adjusting it with following interactions. Using that we calculate the time you have been holding a position, calculate a factor and then adjust your monetary position with that factor.
Sounds pretty complicated, that is why later on a post will be released explaining this in deeper detail. But for those of you that only want surface knowledge, let’s look at an example. The first time you enter a farm or a pool the block number is registered. A withdrawal action will reset your block number, therefor loosing all accumulated holding factor till this point. A deposit action will adjust your holding factor proportionally to your relative change in total value deposited. This obviously only affects actions regarding your deposit, not the rewards your deposit will garner. You still are able to withdraw all your gained rewards at any point without affecting your holding factor.
Although this might change, the current planned holding factor will be increased each day of holding a position. This does not have a maximum. Another big question in the current landscape of yield farms is, how will you combat inflation? Well, there a couple of things we could do. Layered farming like Goose.defi did, a lottery like Pancakeswap did, we might do those things, but they’re not our priority.
We have 2 things already in place that will combat some of the inflation. The first one is, that we will halve the minting rate depending on the time passed. According to our calculations this means that after around 170 days a total of one million tokens will have been distributed and after around 700 days the total will have increased to two million tokens. And the second counter measure is another feature of our reward pool. Before the reward pool distributes all it’s tokens, it will burn 20% of the accumulated taxes. But this will very likely not be enough to combat the inflation. There are two more things that will take some time to create, but will help to just do that. We will create limited NFT packs which can be bought and will use the revenue to burn Lotl. And the probably biggest thing we are planning to do is expanding to different low transaction fee blockchains, where we will provide a bridge for our LotlToken and new uses for the token. The generated fees will then be used to burn even more Lotl. This was just a small teaser of what is to come. Be tuned for more posts regarding ICO, tokenomics and deeper explanation of our reward pool.
Your Lotl Team
