Pond Deposit & Return Distribution
A percentage of all Pond deposits & returns are used for operative costs, purchasing $ACYC tokens then distributing them to holders, and rewarding Pond Contributors and Operators.
Last updated
A percentage of all Pond deposits & returns are used for operative costs, purchasing $ACYC tokens then distributing them to holders, and rewarding Pond Contributors and Operators.
Last updated
A % of all deposits into the protocol go to $ACYC token holders and operative costs, ensuring that regardless of individual Trader Pond performance, $ACYC benefits and the protocol remains functional. They also receive a % of returns from successful Pond, allowing them to benefit from the gains Operators make as well!
It is important to emphasize that the primary mechanism for manual reflections (return distribution) is via purchasing $ACYC tokens with profits on the open market.
The ACYC team uses a percentage of Pond deposits and returns to market-buy $ACYC tokens, adding buying pressure to $ACYC, and then manually reflects those tokens to all $ACYC holders (eventually just Stakers). This mechanism also allows the ACYC team to effectively maximize profit redistributions by timing those purchases for maximum yield and distribution.
Another % of deposits and returns are used for operative costs for the protocol, again ensuring sustainability regardless of individual Pond performance. Here is an example % breakdown for a Pond's flow of funds, (but in practice each pond could vary in its % structure).
3% goes to $ACYC buybacks/manual reflections
3% goes to operative costs for the protocol
The remaining 94% goes to the Trader Pond for the Operator to trade with.
Upon the successful closure of a Pond, the distributions are as follows:
44-69% of the profits, as well as the entire initial Contribution amount, goes to Pond Contributors
25-50% of only the profits goes to Pond Operators
3% of only the profits go to operative costs for the protocol
3% of only the profits goes to $ACYC buybacks/manual reflections.
Example 10e Pond:
A Pond Operator looks to raise 10e to start trading with, and has a goal of 2x ROI for the Pond.
(in later Phases, Contributors will be required to buy and stake a percentage of their contribution to the Pond as $ACYC)
10e is deposited to the Operator's Pond for trading by Contributors: 9.4e goes to the Operator's Pond for trading, .3e goes to Protocol Operative Costs, and .3e goes to buying back $ACYC and distributing it to all holders (eventually just Stakers)
The Pond Operator trades with the 9.4e, and reaches their target ROI of 2x (18.8e)
The Pond is liquidated/closed, 13.53e-15.89e goes to Pond Contributors, 2.35e-4.7e goes to the Pond Operator, .3e goes to buying back & reflecting $ACYC, & .3e goes to protocol operative costs
As the deposits and returns through the protocol increases, ACYC can perform frequent manual reflections; that would result in significant daily buying pressure on $ACYC and significant compounding reflections for holders.
