Coming back with another great project –
WHEAT is the most sustainable yield farming project on Binance Smart Chain (BSC)
WHEAT High-Yielding token by staking it or providing liquidity for one of its pairs, inflationary in the short term, deflationary in the long run.
The typical farming uses up any existing revenues to automatically buyback the token, however the point in time where the protocol is making the most revenue is usually also the point at which the token price is the highest, this makes the effective buyback amount negligible compared to the tokens being issued.
When the price of the token eventually crashes down so does the TVL/volume of the protocol and as a direct consequence the revenue of it, the result is that no matter the current state of the protocol it never has enough revenue to buyback more than what it’s issuing.
WHEAT’s unique sustainable model
WHEAT’s main revenue source comes from deposit and performance fees, the deposit fee builds up the balances of the fee collector contracts . Only the profit of the fee collectors is used to buy back WHEAT. Here’s a visualization to make it easier.
The performance fee capitalizes on the higher likelihood of TVL staying within the protocol and generates a more consistent revenue source.
This leaves three scenarios depending on what the price of WHEAT does:
1. Scenario A (WHEAT’s price goes down)
Less Deposit & Performance Fees (Note that even if it’s less it’s still constantly increasing since the LP tokens aren’t used for buybacks, only the CAKE it farms).
Swap fee growth remains the same
Amount of WHEAT being bought back up increases inversely to the price drop, example: If all the CAKE being collected is buybacking 3,000 WHEAT/day and the price drops 90% then Buybacks are 10 times more effective and it’d now be buybacking 30,000 WHEAT/day , this is why it is important to have an uncorrelated buyback source to the price.
2. Scenario B (WHEAT’s price stays flat)
Consistent growth from Deposit & Performance Fees
Swap Fee growth remains the same
Amount of WHEAT being bought back up increases overtime as a result of the increase in the balance through deposit/performance fees and the swap fee growth. 3. Scenario C (WHEAT’s price increases)
Substantial increase in Deposits & Performance Fees
Swap Fee growth remains the same
Amount of WHEAT being bought back up goes down but its buybacking power increases faster than in the other scenarios, making it better prepared for when the price stays flat (Scenario B) or starts dropping (Scenario A).
WHEAT is a product of the Growth DeFi ecosystem. Growth DeFi team has been in the DeFi game for multiple years.
Rodrigo Ferreira is the Head Developer for the backend code of Growth DeFi. He has a Ph.D. in Computer Science from Yale, and has a deep background in formal semantics, program verification, and compilers. Rodrigo is deeply interested in cryptocurrencies/blockchain and has previously developed a mobile wallet and a cryptocurrency exchange.
The goal of WHEAT is sustainable farming on BSC, growth over the long term and being able to incentivize the products of the Growth DeFi ecosystem. It’s basically a better version of business BUNNY.
Token Address: 0x3ab63309F85df5D4c3351ff8EACb87980E05Da4E
Mcap: 1,3 million
Team public: Yes
Fairly launched: Yes