1. Little introI've done a bunch of research on delta.financial and think it's one of the most interesting projects out there. The project is all about providing sufficient liquidity for a decentralized derivatives exchange. It's got some really big-brained tokenomics and game theory. This is all developed by the CORE team and part of the CORE ecosystem. It's pretty exciting, cus this can easily lead to the most liquid, decentralized options platform in the world. But let's be real - most importantly, I think there's a really good ROI opportunity here.
The opportunity will essentially come from the Limited Staking Window that launches later tonight around 11 PM CT. The time isn't quite yet official, but I'll update this post when that information is made available. A bit like WISE token's auctions, you stake some ETH, get up to a 30% bonus if you stake early, and then you'll receive certain assets that contribute to the sustainability and liquidity of the ecosystem. There's also a great referral system where both parties get bonus rewards. However, the tokenomics of this project are very complicated - in a good way. There are reward multipliers, permanent liquidity locks, vesting schedules, hyper-deflationary rebasing, etc. Essentially, there's a lot of different strategies you can come up with to yield your desired returns.
The CORE team has done something like this in the past. Their LGE1 liquidity event was extremely successful. People made back their investment in a couple of days. Afterwards, you're essentially earning passive income for the entirety of the ecosystem's existence.
2. Delta OverviewWhat is Delta Finance?
Delta Finance serves as a way to Guarantee liquidity in a decentralized options market.
Delta's Deep Farming Vault will provide liquidity for the eventual coreDEX, a decentralized derivatives exchange, through effective tokenomics and the Limited Staking Window (LSW).
This project is VERY complicated, so please feel free to ask questions! I've linked all medium articles and important links at the bottom of the post. This is NOT something you ape into.
TeamDelta.financial is built by the CORE team. This means that both the liquidity obtained through Delta and the liquidity obtained through CORE will BOTH be providing liquidity to CoreDEX.
Official statement: Delta will serve as an important building block for coreDEX. The token will be working conjointly inside CORE’s ecosystem to enhance its overall utility and address the need for options and futures. coreDEX DELTA is the first part of the coreDEX infrastructure.
Limited Staking WindowLimited Staking Window (LSW) starts approximately on Feb 19 11 PM CT. The Limited Staking Window will remain open for 10 days, rewarding early stakers with a bonus of up to 30%.
The time based bonus function will give early participants a bonus of up to 30% on their staked Ethereum. This premium is reduced linearly over a set of time, reaching 0% at end of the Limited Staking Window.
The delta system consists of two tokens:
* rLP token
* Delta token
An example of how the Limited Staking Window works.
I stake 1 ETH at the beginning of the Limited Staking Window. The earlier you stake during the LSW, the higher bonus you'll receive. The highest bonus you can receive is 30%. Since I staked 1 ETH on the first day of the LSW, I will receive 1.3 ETH worth of rLP tokens when the LSW ends.
I can do any of the following after the LSW ends:
* Stake rLP to earn Delta
* Stake Delta to earn Delta (compounding strategy)
When you stake an x amount of Delta, 0.5x of that Delta gets locked up PERMANENTLY
Maintain a Reward Multiplier
Staked Delta has a variable Reward Multiplier, ranging from 10x to 1x. It requires weekly deposits of Delta to maintain it.
Some important notes:The ETH that you stake during the LSW will be PERMANENTLY staked. This guarantees liquidity for the eventual CoreDEX exchange and also provides a price floor Delta tokens.
rLP tokens and Delta tokens will be tradable and available on Uniswap after the LWS ends.
The rLP token will become increasingly expensive to mint overtime (price gets rebased everyday). The cheapest way to obtain rLP tokens is to stake ETH during the LSW. After LSW ends, the rLP price will be rebased to 150% of the price that people paid in LSW. After that, the price will be rebased to an additional 10% EVERY DAY.
Delta Infrastructure and mechanisms:
Delta Vesting Schedule
Delta has a vesting mechanism built into its token that is triggered on transfer.
When Delta is transferred, a token vesting schedule is activated. 10% of the total token balance is sent to the user while 90% is initially locked and released linearly, over a 2 week period.
Example:
User A buys 100 Delta on Uniswap. The wallet receives 10 Delta while the rest of the purchase is locked. During the next 14 days his wallet will receive the remaining tokens which unlock linearly. On the second day, the Delta inside User A’s wallet has grown from 10 Delta to 16 Delta. This process will continue until all the initially purchased tokens are received by the wallet. On day 14 User A’s wallet holds 100 Delta.
From where and how are we receiving these Delta token rewards?
If a person cancels the token transfer, the vesting schedule and the immature tokens get distributed to the Vault as staking rewards. This is the main source of all delta token rewards for rLP stakers.
Also, you can't just withdraw a 100% of your delta reward tokens right away. There is a one year vesting cycle for 95% of the staking rewards. So if you decide to withdrawal right away, you lose out on 95% of your Delta rewards (your unvested delta tokens get distributed to other stakers). Remember, only your Delta tokens will have vesting. You can sell your rLP tokens on Uniswap as soon as the LSW ends.
Referral SystemThis is a bit like WISE token's auction referral system. Every staker can provide a referral address based on their ETH wallet address.
The referring member (referrer) receives 5% bonus in credit and 5% in ETH. The referral receives a 10% bonus on their initial contribution.
Example:Let's say I refer my friend Bob, and Bob stakes 10 ETH. When the LSW ends, I will receive 0.5ETH worth of rLP tokens, and 0.5ETH. Bob will receive a 10% bonus from my referral, so he will receive 11ETH worth of rLP tokens. You can refer as many people as you want. So if your referrals lead to 50ETH staked, you'll get 2.5ETH in rLP and 2.5ETH as your bonus.
3. Reward MultipliersDeep Farming Vault: Yield Maximizing Strategy
I'm going to copy and paste most of this article here, so you can have all the info in one place. But I still highly recommend reading the article above before proceeding.
Revenue split from Vesting Schedule Interruptions:
During a vesting schedule interruption the unmatured Delta is distributed accordingly:
80% Delta
20% market sold for ETH
From the total Delta distribution:
70% goes to Deep Farming Vault (staked rLP & Delta)
20% is permanently locked Delta (credited to the user who interrupted the vesting schedule)
10% Dev Fund
From the total Ethereum distribution:
25% goes to CORE Farming Vault (Market Buying CORE)
25% goes to Delta Farmers (Deep Farming Vault)
50% goes to Dev Fund
λ Staking rLP in the Deep Farming VaultUsers can stake rLP tokens in the Deep Farming Vault to receive yield from vesting schedule interruptions.
Yield Rewards: Delta & Ethereum
Reward Multiplier: fixed equivalent of 30x delta rewards*
Staked rLP tokens have a permanent Reward Multiplier.
Multiplier is dependent on the total rLP minted during the LSW, which can vary. 30x is just a best-effort estimate by our team.
rLP vs Delta StakingDelta rewards from staking Delta tokens (1) are different from the Delta rewards from staking rLP (2).
(1) withdrawing your Delta rewards from rLP tokens don't have any vesting.
(2) withdrawing your Delta rewards from Delta tokens has a 1 year vesting schedule. You will also lose your 10x Delta reward multiplier.
THIS distinction is VERY important. So, make sure you don't accidentally withdrawal Delta reward tokens from your staked Delta pool without having a plan.
Calculating rLP staked rewardsrLP stakers receive rewards in Delta and ETH from vesting schedule interruptions (when delta token purchases are cancelled during their 14 day vesting period).
I did the math for each vesting schedule interruption:
rLP stakers receive (0.7 *0.
56% of the unmatured delta in delta
rLP stakers recieve (.25*.20) 5% of the unmatured delta in ETH
As you can see, the rewards you get from staking rLP tokens will be a 10:1 ratio of Delta:ETH
These percentages are distributed proportionally to your % share of the rLP staked pool. So if you own 1% of all rLP staked, you'll receive 0.56% of all unmatured delta in the form of Delta tokens and 0.05% of all unmatured delta in the form of ETH).
The different reward multipliers for rLP and Delta can be a bit confusing. What does 30x mean? How does that relate to 10x? How do these different multipliers work together? etc.
Now here is what actually confused me:
In the article, it says:
Staked rLP tokens have a permanent Reward Multiplier.
Multiplier is dependent on the total rLP minted during the LSW, which can vary. 30x is just a best-effort estimate by our team.
What does 30x mean? What is the base value x?
To answer this question, let's look at the Delta token reward multiplier first.
Staking DeltaYield Rewards: Delta & ETH
Reward Multiplier: variable (compounding)
Staked Delta has a variable Reward Multiplier, ranging from 10x to 1x. It requires weekly deposits of Delta to maintain it.
* Week 1: 10x
* Week 2: 7x
* Week 3: 4x
* Week4: 1x
Every week 10% of the principle needs to be deposited in the Deep Farming Vault to keep the Reward Multiplier stable. The Multiplier can only increase by a maximum of 1x per week.
You can choose to reinvest Delta staking rewards to maintain the Reward Multiplier. (compounding effect)
When you deposit for the Reward Multiplier, 50% of your deposit becomes permanently locked Delta, while the rest is added to your principle. This compounding activity promotes the yield production of the Deep Farming Vault and keeps your Reward Multiplier stable.
So what does 10x mean? What is the base value x?What 30x and 10x rewards mean
The multiplier is more like, a multiplier on your "share" so to speak. All rLP tokens have the 30x, and Delta can range from 1-10x.
So if you have 100 delta with a 10x multiplier, its gonna be seen as 1000 Delta for staking purposes versus a guy with 100 delta and a 1x multiplier.
4. Delta & rLP ValueLet's start with Delta
Long term it has value because of coreDEX. coreDEX is scheduled to have its Beta in Q1 2021. The 2 week vesting mechanism for Delta essentially provides emergency liquidity to 1 week options - really smart. Withdrawing Delta token rewards from staked Delta is vested yearly. And to maintain that 10x reward multiplier on your staked Delta requires a 10% weekly deposit - half of which is permanently staked adding more guaranteed liquidity to the ecosystem. And as soon as you withdraw Delta token rewards from your staked Delta, you lose your reward multiplier. Any way you see it, delta stakers are incentivized to keep adding to their staked position.
Short term, Delta tokens can be used for farming ETH and more Delta tokens.
Just as important - the rLP token
rLP tokens have a hyperdeflationary rebasing price mechanism. Unlike Delta, there's no community sponsored pool. The price of rLP tokens increase by 50% after LSW ends. So we're all essentially getting in at a 33% discount. But since there won't be a lot of initial liquidity for rLP, there won't be much sell pressure due to high price slippage. Since the rebasing after the first day increases the price by 10% everyday, the price of rLP tokens can easily 2-4x within the first week. rLP price = (LSW rLP price * 1.5^x) where x is the number of days since the LSW ends. Eventually there will be enough of an established secondary market for it. It'll most likely be on Balancer.
Delta will have 1500 ETH worth of liquidity on Uniswap as soon as the LSW ends. It's essentially an IDO. So, the price should pump. But here's the awesome part.
As rLP stakers, we win whether Delta price goes up or down. Cus if people are selling Delta prematurely, we get a bunch of Delta rewards. And since people can only sell a portion of their Delta if they are impatient, there aren't big sell orders. And if the price goes up, then our Delta rewards are just more valuable.
All in all, this is a long term play. You either believe that the CORE team can pull this off and eventually release dexCORE succesfully, or you don't. They've done a similar event to this a few months back. Their LGE1 liquidity event was extremely succesful. People made back their investment in a couple of days.
Another great thing about the Core and Delta ecosystem is that a derivatives exchange does especially well during a bear market. There’s plenty of liquidity locked permanently, plenty of incentive to stake long term, very little incentive to withdrawal Delta rewards from Delta staking - there shouldn’t be a problem with this ecosystem in a bear market.
5. LinksI recommend reading these 8 Medium articles in this exact order:
The first 5 are the most important.
Intro:
https://medium.com/delta-financial/introducing-delta-financial-769d387e9430 [nofollow]How the Delta Vesting Schedule works (the source of all fees that stakers earn):
https://medium.com/delta-financial/delta-tokenizing-open-vested-liquidity-7b115d03fb5 [nofollow]Limited Staking Window:
https://medium.com/delta-financial/limited-staking-window-how-to-obtain-delta-and-rlp-bae16847933d [nofollow]Detailed earning strategy:
https://medium.com/delta-financial/deep-farming-vault-yield-maximizing-strategy-a453a24a68d4 [nofollow]Referral Program:
https://medium.com/delta-financial/deltas-referral-program-bcd11e37dccb [nofollow]The Effect of Liquidity Rebasing:
https://medium.com/delta-financial/the-effect-of-liquidity-rebasing-7ea538207d0b [nofollow]Delta: 48h Review Period:
https://medium.com/delta-financial/delta-48h-review-period-2b2e8e790603 [nofollow]Delta LSW Review Period Starts Now:
https://medium.com/delta-financial/delta-summary-2d48b0a15d7c [nofollow]Delta Website:
https://delta.financial/ [nofollow]Delta Telegram Link:
https://t.me/Delta_Financial [nofollow]CORE telegram Link:
https://t.me/COREVault [nofollow]Delta Twitter:
https://twitter.com/Delta_Token [nofollow]6. Final remarksAgain, please feel free to ask me any questions on the project, strategy, etc. I'll be happy to help.
Get a 10% BonusIf you found this helpful, please consider using my referral address if you decide to stake. You'll get a 10% bonus on your staked ETH as well:
https://delta.financial/join/128 [nofollow]I have 0 affiliations with CORE or Delta. This is not financial advice. I'm just a crypto boi who likes to do some research every now and then
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Topic: Delta.Financial : best DeFi of all time ? (Read 707 times)