Sustainability
"Sustained success means making the greatest possible impact over the longest period of time" - Marcus Buckingham
Last updated
"Sustained success means making the greatest possible impact over the longest period of time" - Marcus Buckingham
Last updated
Importance of Treasury
In the fiat world there are what everyone knows as mutual funds. It's basically run by fund managers investing into several different types of asset classes. Most people invest into them as it is an easier way to gain exposure and invest into a basket of assets that they may not have the expertise in or time to watch over on a daily basis. The financial health of a mutual fund is often determined by their NAV (Net Asset Value) ratios. If a mutual fund's NAV ratio is at 1:1. It would mean that their market cap is equal to the value of their assets and/or investment instruments. Very often, NAV ratios would hover around 0.80 to 1.25 based on the future performance of their assets. For Apex Finance context, the ratio would be MC:TV (Market Cap to Treasury Valuation) if the ratio is below 1.0, you are getting a discount. Above 1.0, you are paying a premium that's worth it because we have an ecosystem of investments that would yield us earnings via means of crypto mining, yield farming, our own DEX and deflationary measures installed into our protocol. (Buy backs burning, Max Supply Cap, Liquidity Bolstering). Our treasury health is the heart of our protocol's success.
Taxes & Treasury Gains
Taxes from buying and selling will fund our investment and reserve treasuries and liquidity pool at the beginning, taxes will allow us to sustain and give us time to use the treasury funds to build profitability into our protocol. We will also introduce and deploy deflationary measures to ensure we will remain sustainable and profitable.
Tax breakdown is as such:
Liquidity Pool (LP) will get 1% from both buy and sell transactions.
Reserve Fund (RF) will get 1% from both buys and sells.
Investment Treasury (IT) will get 2% from buys and 2% from sells.
Reserve Treasury functions as a hedge against the volatility of the market price, stabilizing prices when needed.
Icarus Dynamic
We will eventually introduce and implement a monthly auto-burn mechanism into our protocol having dead wallets soak up tokens later on as our protocol progresses. The aim of the burn mechanism is to consolidate and grow the price of $AFX Tokens.
Treasury Plays
Liquidity yield farming
Crypto Mining
Development of our own DEX/NFT marketplace.
Master nodes
Partnerships
Governance token acquisitions
DEX/NFT Marketplace
We aim to build our own DEX that earns from transaction fees. Once it is plausible, we would commence the development of our DEX.
We also intend to further build into our DEX a NFT marketplace for users to launch their NFT mints or simply trade NFTs.
Crypto Mining
Good old crypto mining. We will use a portion of our treasury to either buy over existing crypto mining farms and/or build our own. No other better way to back our liquidity pool and treasury with crypto mining itself. And other protocols might also be interested in investing into our protocol for this.
Nodes
Master nodes like FLUX & Presearch Nodes for stable constant APY.
Partnerships
We understand that the market is way too big for one protocol to try and gather everything. We will be seeking partnerships with other like minded protocols in the DeFi space and see how we might work together in attaining profits.
Crypto Governance & Partnerships
Governance tokens acquisitions. Similar to some of our counterparts, we intend to form partnerships to work together and acquire governance tokens at the same time to allow our community to profit as proxy governance token holders as new protocols ramp up.
Disclaimer: All these will take time but we intend to implement them as soon as humanly possible. These are what we intend to do for now, as we grow and our community grows, we will expand into more ventures. All subject to voting by our community. (we have more ventures installed in the near future but let's get off the ground first)
As our Copper Launch raises us money to build our ecosystem to start earning money for the protocol, we will be building the web3 dApp for our website to enable AFX token holders to start staking for USDC as our ecosystem grows.
The reserve fund's purpose is to keep the price of AFX stable. if there is too much sell pressure, it would be deployed to buy back AFX tokens from the market and burnt off. In the case of having a huge buy pressure, we would use that to build the treasury and the reserve fund. Our goal is to have a healthy NAV ratio for our treasury value to market cap. And a healthy reserve fund is essential to achieve that.
