In this post we will introduce the banking contract we implemented for APG token and how investors get rewarded.
How to make huge profits in crypto?
Many altcoins have done more than a 1000x over the course of 2021. It will still grow much faster than traditional assets like stocks but will it 100x from current all time highs? Probably not! Most altcoins are much more of a speculative bet in nature with tiny market capitalization, and investors struggle to find the right one in order to make huge profits based on its price spike.
What’s special about the bank design?
Instead of letting the investors venture out and take more risk, we assist the angel pig (APG) team to design a new system that we believe can bring investors huge profits with much less risk. It provides a new way for investors to make huge profits by 10X-100X their balances. They get rewards by sending their balances to the APGB contract, and they receive rewards from every single transaction happening on the network, which will increase their balances significantly upon their withdrawal. Furthermore, depositors leaving the system by claiming withdrawal will pay withdraw fee to the remaining depositors, which further benefits the long term holders.
Given the current APGB revenue model, the depositors (holders) will get significant rewards during big periods such as presale, community airdrops, etc.. where there is significant transaction traffic happening on the APG network.
Case study: how a user manages to 10X his token balances?
Without generality, we assume there are currently 10 depositors (labelled 1–10) on the network, and each deposited 100 million tokens.
Total values locked = 100 * 10 = 1000 million
Now, supposing this happens on the day of presale, where the network transaction volume flow is over 20% of existing supply (40% on presale).
Total Volume Flow = TotalSupply * 20% = 1799778 million
At current banking reward rate, 3% of transaction volume is flowing to the bank, which yields the following amount of rewards to depositors:
Total Rewards = Total Volume Flow * 3% = 53993 million
Since the banking system tracks fractional ownership of each depositor’s share as an evaluation of their role of participation in the bank, it is capable of distributing network transaction rewards towards the 10 participants in proportion to their deposits. Each depositors will be able to get:
Individual Rewards = Total rewards / 10 = 5399.3 million
Now, each individual depositor has made almost 54X more token balances than they originally have. But the story doesn’t stop here.. Suppose 9 depositors are satisfied with the profits and decide to leave the system. Upon withdraw, they are charged 3% withdraw fee and rewards are redistributed to the remaining depositors, so the last depositor will get: (1/9+1/8+…+1/1)(5399.30.03)=458 million tokens in addition. So the last depositor withdrawing from the bank will get 58X profits compared to 54X of the first withdrawer, which explains why the bank incentivizes long-term holders.
Note:
- You can deposit multiples times with different amount of deposits each time into the contract.
- In each deposit, your rewards are claimed and added to your deposit to generate further rewards.
- Upon withdraw, all your deposits + rewards will be claimed and sent back to your wallet.
Conclusion:
The contract's banking system is a flawless and scalable reward distribution design, which is capable of distributing network transaction rewards towards a pool of participants in proportion to their deposits. It is the first pioneer model in the deflation token framework to generate huge return and income to long-term token holders.
Our implementation decouples the reward distribution and withdrawal flows, makes use of a memory-optimal algorithm to coordinate the reward allocation and achieves O(1) time complexity for all the core functions of the system. This approach minimizes the use of network gas when using the system. which scales to any number of registered stakeholders and allows for reward distribution events that have higher though-put, higher granularity and generate an even load on the community's ecosystem.