How does fLIBERO generate revenue to backup high APY?
fLibero enables its holders to extensively compound their investment and returns, as the protocol auto rewards its holders with 1.02% a day with the compounding APY of 4,038.29% is rewarded every 10 minutes, 144 times a day.
Seeing the size of this APY, one may wonder — how is such APY attainable?
fLibero leverages a number of revenue-generating mechanisms:
Unlike Titano which has a static RFV fund that does not yield profit, fLibero uses the FIT fund and the treasury fund to farm stable tokens through multichain farming. The FIT funds are bridged to other EVM-compatible blockchains - like Avalanche, Solana, Metis, Polygon, etc. to farm at the highest APY farms and the profit is then brought back to fLibero and returned to the FIT fund.
fLIBERO seeks yield-generating opportunities across different protocols and chains. This means that the fLibero funds does not remains entirely on the FTM network, the money from the Treasury will be bridged to many other networks such as Avalanche, Ethereum and any emerging blockchains which may have higher profit yield farms and substantial APYs. This strategy enabling fLibero to deliver at least ~100% additional returns a year to better support fLIBERO price floor. That's why we are confident that we can support higher APY than other projects while still being sustainable long term.
Employing the use of protocol owned liquidity (POL) in combination with the underlying mechanics of fLIBERO is a key distinction that enables fLibero to generate an additional revenue stream (SpookySwap give 0.25% of each transaction for Liquidity providers) allowing it to deliver additional added value and increased APY to its token holders.
16% Buy and 25% sell fees
The protocol takes a portion of the trading fees (buying and selling) and utilizes these to further sustain and back the protocol and its liquidity.
Every week, 2 to 4% of the total circulating supply will be burned. This percentage will evolve over the time based on our Automatic Hyper Burn algorithm. The burn calculation will be updated daily according to the number of holders and the tokens held by each.
With our Hyper burn program, 2-4% of total circulating supply is automatically burned every week, so fLIBERO's total supply will constantly be deflating against your balance, while your balance is constantly increasing against fLIBERO's total supply. This built-in mechanism creates a true supply/demand metric to the fLIBERO token as it becomes ever scarcer against your balance with time.
In simple words, if you just hold fLIBERO, your share of total market cap will be ever-increasing. Even if market cap remains stable (no new investors), the USD value of tokens in your wallet will still be growing. If the market cap raises by having new investors, your USD value of tokens will grow even more thanks to your share/total supply increasing continuously every week.