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Frequently asked questions from our beloved users
Yes. Currently team, marketing, dev tokens, and liquidity LP tokens are time-locked. Please refer to the below:
- The liquidity has been sent to timelock contract (0x9348312B593B7946b3e8feC7b76f84e53433FA7A) which will be locked for one year from now and release at Block#17437094.
The IDO was a fair launch. There was no pre-sale. The founders team put up 20BNB of their own capital to provide liquidity; essentially pricing the IDO at $0.002 per FEED. Those LPs have since been time-locked for 1 year.
We have indeed underestimated what people think the project is worth. At the time of writing, our token is trading at ~$0.20. Although were we to value the project at $10MM(?) fully diluted and put up the required BNB, there is no saying whether the market agrees and our capital for liquidity is essentially time-locked for a year. We think the way we've done it was relatively fair. We've allowed the market to price it.
24 hours after the IDO, have a very nice distribution of top holders holding no more than 300,000 tokens, out of the total 5,000,000 provided. We think it went well.
We have received an audit from CertiK and will receive an audit from PeckShield for the first vault product.
Please see Audit section below
FEED Tokenomics is driven by THREE value drivers but all derived from ONE source of value, namely Total Value Locked ("TVL").
Photo by Guillaume Hankenne from Pexels
Visualize the above waterfall as the flow of CAPITAL, rather than water. At the source, on the very top, is TVL. That is what is driving how much each of the steps down below will receive in value, in other words, RETURN ON CAPITAL. The following is how those returns are generated from the constant flow of TVL:
Value I: Entry Fee
Fees collected from the entry fee will be managed by the governance body to direct funds once the governance system has been implemented post-core product launches.
How does this drive value? The funds can be used in many different ways to create price demands from regular market buying to support price, pay-back to holders as rewards, be used for community-led marketing programs like airdrops, act as insurance to make sure investors' funds are protected during in unforeseen scenarios, and so much more. The larger the funds, the greater the potential for returns on such funds, at the same time lower risk which in itself, is a marketing tool.
Much like how companies' equity value has a cash component that adds to its value, the treasury wallet will act as such to drive FEED market cap.
Value II: Exit Fee
Exit fees goes to the engine room of project, the developers.
How does this drive value? A strong developer team allows Feeder Finance to 1) launch products at a pace that allows it to capture market unmet needs and be the first mover (speed is key - and DeFi moves extremely fast), improve existing products to constantly enhance user experience, swiftly solve any issues faced without delay.
Much like how Alphabet, Facebook, or Tesla can demand a massive valuation premium to the market, they are given this premium by investors for one thing and one thing only: GROWTH; and this is why strong dev team leads to a strong growth value driver.
Value Driver III: Profit Sharing
Profit sharing gets divided into two pieces, and I'll start with the simpler piece:
How does capital inside Treasury Wallet drive value? On top of governance-managed funds, Feeder Finance team will also maintain a marketing and insurance fund that will be used for similar purposes, they may focus more on marketing as funds can be deployed much quicker with less bureaucracy of a governance funds that require voting and voting periods. Partnership decisions can be made, exchange listings can be funded, and KOLs can be engaged.
Much like how small private companies can grow their business much faster than large, this is due to flexibility and speed.
How does profit sharing with token holders drive value? As investors in our platform receive a return on their investment, they pay a 5% profit share, a portion of the profit share (70%) will be distributed back to FEED token holders, through staking rewards. This is perhaps one of the most important value driver in finance when trying to value any project or company. How much and how fast is the rate of capital that investors have invested will be returned to them, look up "IRR". They could be either in a form of capital gains, but what's far more predictable and appreciated, are dividends or free cash flows to investors. This is exactly what this is, a dividend of sorts. Predictable rewards based on TVL also allows prudent long-term and savvy investors to run their own analysis of valuation and, based on their required return on capital, value the token price relative to TVL. Using certain assumptions that may or may not come true of course.
Why do we think this piece is super important? In a bear market, capital within the ecosystem largely does not leave, it moves around. And it typically moves into more stable currencies like USDT or BUSD which generates lower return but is more "stable". In a bear market where prices of tokens decline, capital will find its way to the best place to sit and wait. And we think Feeder Finance will be among the places to do that. Therefore, as speculative waves turn, our token price, instead of becoming less valuable intrinsically, will be become more, as TVL grows.
Much like how stable large companies with strong and predicable dividends perform well and are less subject to market swings
The above does not capture many more factors that are secondary such as speculative appetite of investors, the feedback loop of success leading to more partnerships leading to more exposure leading to more confidence leading to more TVL, and so on and so forth. It only captures what we see as the core value that the Tokenomics is structured to drive Token price.
Final Disclaimer: There are some regulatory issue with this approach. That's also the reason the founders are anon. At the moment that's not an issue but once we become large enough, it could be. And there are always workarounds. We'll put all significant decisions such as changes to the Tokenomics structure to a vote, ultimately, Feeders are true owners of Feeder Finance.
We observe every exploit that happens in crypto.
Our vaults can't get flash loan exploited. An address can only perform one transaction per block with our vaults; flash loans require multiple transaction.
The security standard of our smart contracts is extremely high since we 1) don't use any oracles, 2) don't issue reward tokens, and 3) because of the simplicity and flash loan protection. The audit by PeckShield took one month, and we have resolved every issue. We are growing an insurance fund but we can't guarantee the security of the target vaults even though we only choose high quality ones. Our Auto Diversify product is a great choice when you want to have a simple and diversified experience.
By staking FEED on Feeder Finance, you receive sFEED. sFEED is the key to unlock your staked FEED + rewards.
You can compare sFEED to a treasure chest. The treasure includes your initially staked FEED + rewards. You don't get more chests by receiving rewards, but the treasure chest becomes heavier. sFEED becomes more valuable the more staking rewards the platform has distributed.
Here is a more mathematical approach for users who find the metaphor challenging to understand. At the beginning of the staking pool 1 sFEED = 1 FEED. However, since the release, the staking pool will start to accumulate rewards. This process makes sFEED more valuable. As of the time of writing 1 sFEED = 1.0387 FEED.
sFEED becomes more valuable with time. The more staking rewards the platform has distributed, the more staking rewards one sFEED represents. Even though you have received less sFEED than staked FEED it still represents your deposit + rewards.
Yes, if you would keep your sFEED, then the system would be flawed. sFEED is the key to unlocking your staked FEED + rewards. It wouldn't make much sense to keep the key after having opened the funds.
The TVL data is showing target TVL rather than our vault TVL. This gives users a better decision making too about which target they'd like to deposit to.
The UI may change over time and things will get clearer
The tokenomics and distribution schedule was carefully designed to allow the project to develop and grow towards a sustainable level of fee generation. Approximately 12 months after our launch the team estimate that the platform will generate sizable fees to justify a reasonable APY for stakers. A fee that grows over time as users and platform functionalities and utilities grow.
To break it down, once token minting has stopped at 100 million total supply, the only source of APY for stakers will be platform fees. Platform fees are used to buyback FEED in the open-market and to distributed per set distribution split.
0.1% of entry fees going to the governance treasury
0.1% of exit fees to the developer wallet
5% profit sharing split two ways
- 3.5% to the staking pool
- 1.5% to developer wallet
Essentially FEED stakers are owners of the platform and are entitled to a fair share of the platform fee.
The Developer Wallet is used for development and maintenance purposes.
These are things like:
- Development expenses such as smart-contract deployment gas fees, IT infrastructures, developer compensations
- Maintenance expenses such as product compounding gas fees (hundreds of products are compounded every day, and the developer wallet is responsible for this cost on behalf of depositors), servers, nodes, and other backend systems
- Business Development and Security such as reserves for any unforeseen events, partners, advisors, among other things
Note: The founders have not been compensated for their effort through the developer wallet since the launch of the project. Founder allocation (15%) has been locked for one-year and unlocked tokens have been staked, not a single token has been sold.