FJUST Protocol WhitePaper:
Static Rewards, LP Acquisition, Charity Burn
A common misconception with the heavy APY average is the subjectivity of the impermanent loss from staking an LP (liquidity provider) in a farming reward generator. With the explosion of DeFi we have seen too many new cryptocurrency prospectors get sucked into a high APY LP-farming trap, feeling hopeless as they are pushed out by earlier buyers with higher staking rewards. We’ve all been there, seeing those shiny 6 digit figures can be pretty damn tempting to jump in.
However, almost always the token suffers from the inevitable valuation bubble, which is then followed by the burst and the impending collapse of the price. This is why we have seen the mass adoption of static rewards, also known as reflection, a separate concept that seeks to eliminate the troubles caused by farming rewards.
Why Static?
Static rewards solve a host of problems:
A common misconception with the heavy APY average is the subjectivity of the impermanent loss from staking an LP (liquidity provider) in a farming reward generator. With the explosion of DeFi we have seen too many new cryptocurrency prospectors get sucked into a high APY LP-farming trap, feeling hopeless as they are pushed out by earlier buyers with higher staking rewards. We’ve all been there, seeing those shiny 6 digit figures can be pretty damn tempting to jump in.
However, almost always the token suffers from the inevitable valuation bubble, which is then followed by the burst and the impending collapse of the price. This is why we have seen the mass adoption of static rewards, also known as reflection, a separate concept that seeks to eliminate the troubles caused by farming rewards.
Why Static?
Static rewards solve a host of problems:
- First, the reward amount is conditional upon the volume of the token being traded. This mechanism aims to alleviate some of the downward sell pressure put on the token caused by earlier adopters selling their tokens after farming crazy high APY’s.
- Second, the reflect mechanism encourages holders to hang onto their tokens to garner higher kick-backs which are based upon a percentages carried out and dependent upon the total tokens held by the owner.
Automatic LP
This is the secret sauce of FJUST. Here we have a function that acts as a two-fold beneficial implementation for holders.
First, the contract sucks up tokens from donors whether buying or selling for a profit on their investment. Either way the contract adds them to the LP creating a solid price floor.
The penalty acts as an arbitrage resistant mechanism that secures the volume of FJUST as a reward for the donors and Operation 261 projects. In theory, the added LP creates a stability from the supplied LP by adding the tax to the overall liquidity of the token, thus increasing the tokens overall LP and supporting the price floor of the token. This is different from the burn function of other reflection tokens which is only beneficial in the short term from the granted reduction of supply.
As the FJUST token LP increases, the price stability mirrors this function with the benefit of a solid price floor and cushion for donors and Operation 261 projects. The goal here is to prevent the larger dips when whales decide to sell their tokens later in the game, which keeps the price from fluctuating as much as if there was no automatic LP function.
All of this is an effort to alleviate some of the troubles we have seen with the current DeFi reflection tokens. We are confident that this model and protocol will allow for the organizations success.
This is the secret sauce of FJUST. Here we have a function that acts as a two-fold beneficial implementation for holders.
First, the contract sucks up tokens from donors whether buying or selling for a profit on their investment. Either way the contract adds them to the LP creating a solid price floor.
The penalty acts as an arbitrage resistant mechanism that secures the volume of FJUST as a reward for the donors and Operation 261 projects. In theory, the added LP creates a stability from the supplied LP by adding the tax to the overall liquidity of the token, thus increasing the tokens overall LP and supporting the price floor of the token. This is different from the burn function of other reflection tokens which is only beneficial in the short term from the granted reduction of supply.
As the FJUST token LP increases, the price stability mirrors this function with the benefit of a solid price floor and cushion for donors and Operation 261 projects. The goal here is to prevent the larger dips when whales decide to sell their tokens later in the game, which keeps the price from fluctuating as much as if there was no automatic LP function.
All of this is an effort to alleviate some of the troubles we have seen with the current DeFi reflection tokens. We are confident that this model and protocol will allow for the organizations success.
FJUST employs simple functionality. Reflection + LP acquisition and the transaction is taxed a 9% fee, which is split 3 ways with the spirit of the Operation 261 in mind.
- 2% is burned.
- 6% is sent to the charity address for organizational growth, marketing and programs such as our Educational Grant.
- 1% is added to the liquidity pool for the community.
Total Supply: 1,000,000,000
Liquidity Pool: 800,000,000 | 80% of all token were added to the liquidity pool.
Locked Dev Wallet: 200,000,000 | 20% have reserved for special events, offerings, and season gifts.
(wallet is locked and opens annually)
Liquidity Pool: 800,000,000 | 80% of all token were added to the liquidity pool.
Locked Dev Wallet: 200,000,000 | 20% have reserved for special events, offerings, and season gifts.
(wallet is locked and opens annually)