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URF Bank Description.
What is URF Bank?
- You lock URF (any period from 1 day to 4 years) in the URF Bank to receive the xURF token as a receipt. (Proportionally, the longer you lock, the more xURF you will receive. A 4-year lock will give a 1:1 ratio of URF to xURF conversion.)
- By just holding xURF, every day you get a BUSD reward from 4% URF trading volume, plus 1.16% URF interest (auto-compound to 6,633.17% APY for you). You will get back your locked amount after 60 days if you lock for 4 years.
- BUSD rewards are calculated based on your proportion percentage of the overall xURF in circulation, this percentage gives you proportional access to the funds accumulated from the pool collected from the 4% URF trading volume, accumulated from the buy & sell tax.
- xURF holders can vote in URF DAO governance for important factors such as transaction tax change...
- You can unlock xURF before time but 80% of your locked URF will be burnt.
Why URF Bank is an innovative feature that helps the URF system long term?
How does URF Bank play a crucial part in keeping URF value sustainable long term?
- The more people that lock their URF to xURF, (usually from 2 weeks to 4 years), the fewer URF tokens are in circulation. The price of a token is based on supply/demand. So xURF will help reduce the supply and increased the demand for URF as new investors will have to purchase from the limited supply in circulation, this will support the URF price in the long term.
- The more URF that is locked, the less new URF is printed. This is because when you lock your URF to xURF you receive the BUSD from the 4% of URF transaction volume and about 1.16% URF rewards every day compounded to 6,633.17% a year. If you don't lock your URF you will receive 2.5% rewards every day. So 50% less URF is printed for all locked xURF which means less inflation.
- xURF is a way for URF holders to receive BUSD rewards, this means that holders don't need to sell their URF to take profits or, if they do sell to take profits, they will sell less to realize their profit when added to the accumulated BUSD. So less selling pressure means a better support price.
- Many people will appreciate their income in BUSD because it feels safe being pegged to the USD. Rewarding BUSD in this market makes URF more attractive in the eyes of potential buyers, raising buying pressure and lowering selling pressure is achieved and this is very important for the project in long term.
- New users will be comforted to see the diamond handed mentality of the URF user base, knowing that so many users have put such trust into a project, for such an extended period, in a climate where projects are failing after a few weeks, knowing that there is a strong core base of long term investors, who have locked their $URF for years, guaranteeing the foundation of the project, will help to stabilize and grow the value of the token over time.
Summary: As you can see locking your URF in the URF bank, not only benefits you (return within 60 days) but also benefits all URF holders and provides a great sense of community and longevity for new people entering the system.
Banking Mechanism explained.
The Banking (locking) period will range from 1 week to 4 years, the basic idea is the longer the time you lock, the higher the number of xURF you will have. You can only keep or increase the lock time, you cannot lower your lock time.
So before you lock your URF you should consider how long you will commit your URF to this function. You can unlock your xURF to URF before the time ends but you can only receive 20% of what you locked, the rest, the remaining 80% will be burnt.
Therefore before locking your $URF you should also decide how many percent of your URF will be used to lock for xURF to receive passive income in URF and BUSD.
When you calculated the percentage, let's say for example that we will lock 30% of our total URF, you should then decide how long you will lock your 30% URF for xURF.
If you lock the URF for 4 years, your exchange of URF for xURF will be 1 URF is equal to 1 xURF. If you lock your URF for 1 year which is equal to 365 days, 1 URF = 365 / (365*4) = 0.25 xURF.
Of course, if you are not satisfied, you can increase your lock at any time to receive more xURF.
How to calculate my daily BUSD rewards?
The rewards depend on 2 factors.
The first is daily volume.
The second is your share percentage of the total locked xURF If the daily volume is high but the number of locked xURF is also high your rewards might be lower than on other days, but during this time you will still be getting your daily rewards paid out in URF equal to 1.16%. If the daily volume is high and the number of locked xURF is low meaning you can have a larger percentage of the total xURF you will receive a larger share of the rewards, and will also continue to receive your daily payout of 1.16% URF.
As you can see your daily takings in BUSD depend a lot on daily volume and how others are engaging with the URF bank daily.
The beauty of URF Bank is there will be a period of fluctuation in the early days as things settle down, but as the nature of the token will push people to lock their tokens for the maximum amount of time, this will mean a large percentage of all tokens will be locked, so will not fluctuate daily, this means that over time the amount of BUSD received by a user will also level off, as people find a spot where their BUSD rewards satisfy their requirements.