On Layered farming
🧢Q1. What is the purpose of layered farming (GREEN, PURPLE and future colours)?
Layered farming makes natives token valuable by enabling them to farm new tokens with less inflation.
Also, contract already deployed cannot be changed.
So to add new functions or fix something, we should deploy newly developed farms.
Layers are not one-directional flow. Organically connecting them to contribute each other would be the point.
🧢 Q2. Is layered farming like any other yield farming sites where one takes advantage of high APRs and exit before others? At the end of the day, this is a zero-sum game. The project is not generating ‘revenue’, so people have profited are being paid by funds from new investors.
I totally agree with that. That's why i keep emphasizing the continuous external flow of income at my medium article.
https://palettefinance.medium.com/dev-thoughts-on-blueswap-tokenomics-1a7e4080a653
At first, it's just okay just with the internal flows, but whether it be buyback, vault, airdrop, all these measure are very limited in funds without the external flow in the end. That's why we are introducing delegate farming to use our TVL to earn external income.
🧢Q3. Understand that DEV team intends to create value for each token. How do we know what is the true value of GREEN or PURPLE? What is the incentive to keep them now given the price keeps decreasing?
Even Bitcoin has gone through -90% dip. Only pure ponzi like bit-connect goes up one way until it pops. We are only a month old project and have so many more to show you. Currently, we are controlling our pace with the new features and layers but shortly there will be a new feature to give holders 'true' value you guys always looked for.
🧢 Q4. Is it a better strategy to always sell GREEN and PURPLE to buy BLUE, and only buy GREEN and PURPLE when you need them or when there are use cases for them?
Absolutely not. Of course Blue is the core token but each token will have it's own use-case for them and price will of course fluctuate according to the various market situations. We're closely looking at the price of all of the tokens.
🧢Q5. What is the intended use case for GREEN?
Firstly, you should really read the medium article above at least once. GREEN is the color of greedy goblin and will be used on every gambling situation in palette finance's features.
For example, it's not yet to be revealed but i'll leak some of the details for the AMA participants
Soon , there will be a lock-vault for royal holders. They're features to boost your share at the vault with some ways. One of them will be by using green to get a random multiplier for the boost. 'Gambling situation'
🧢Q6. Understand that this is for the purpose of NFTs? Perhaps you can shed some light on how PURPLE will be utilized for NFTs? You may not need to give us all the info now, but you can consider releasing bit by bit to keep everyone excited so they do not dump PURPLE.
Currently, most of the NFTs are just only collectibles. Top shot, backeryswap NFT markets, flow, and so on. Doesn't produce any value unless someone buys it with higher price. But in our system, NFT will have distinctive power with the farming.
At the future layer NFT can be bought with only PURPLE to get higher income, unlock the locked reward and so on. You'll need many purple to maximize your income.
Of course, they will also be very beautiful with artistic touch :)
🧢Q7. How does the dev team decide the price of Palette Lottery ticket? It appears to change every week? Given that it changes every week, dev team could potentially manipulate the price of BLUE/GREEN/PURPLE. For example, if dev decides this week more GREEN tokens are needed, naturally GREEN price will go up (probably at the expense of BLUE) if people decide to play with the lottery. Can you clarify the strategy behind?
Yes it changes every week. Actually, new round should start right after this AMA. You saw it right. Price and what token is needed are decided by the market situation. In case we need to increase the demand of certain tokens, we'll increase the use-case of that token in current situation. We don't let any tokens to die naturally. Remember, no colors left behind.
🧢 Q8. How does SketchBox works?
It's really straight forward. Just choose what token you'll use to buy a box, write the amount you'll buy. Approve the usage of the token and click buy. That's all!
We'll get airdropped with reward tokens according to the drop rates which you can see on the right side.
🧢Q9. What I noticed is that the rewards are basically DEPOSIT FEE that dev team collected? Is this just another form of lottery?
Lottery is what you buy the ticket, wait for the winners to be picked. There's a competition if many people buy the ticket. In Sketchbox, the probability is fixed as written 'drop rate' on the right side. Reward will be airdropped right after you open the box(buy).
🧢Q10. Ultimately, dev team could have chosen to sell those DEPOSIT FEE, buy back BLUE and burn (which could benefit all BLUE holders)? If someone who ‘wins’ the SketchBox, they are likely to sell those ‘rewards’ BUT not buy any BLUE tokens therefore none of the BLUE holders will benefit.
.We are trying to create a more sustainable economy here. Definitely not with methods like buyback which will only rewards the harsh dumpers not holders. We're going to make sure long term holders #ROYALHOLDERS are participant of the reward system and take the rewards.
In sketchbox, drop rate is adjusted to save some part of the bought tickets. (Total bought value > total reward value considering the probabilities). So that it can keep save some funds for the next sketch round. That's why we are making it a LP, not pure native token. So that we don't have to sell tokens to fund sketch rewards
🧢Q11. From what I understand is that crazy allocation point will be given to selected pools (i.e. BLUE/GREEN, BLUE/PURPLE pools) at random time for 12 hours. Again, this is essentially taking rewards from other pools to pay people who are in these 2 pools. Therefore, BLUE holders who stake in BLUE-BNB or BLUE-BUSD, or even BANANA-BLUE, SALT-BLUE, SOUL-BLUE are essentially ‘punished’. Is this correct?
Yes! That's why we are not doing this longer than 12hrs. Actually total alloc point is larger than you think so each pool's apr will not be affected a lot. We could have chosen to increase the reward block itself but that would mean more inflation and supply. Also, we wanted to pin point the frenzi reward to BLUE,Green, Purple holders.
After this, there will be a random frenzi rotation through native token pair pools at a random time . So don't get disappointed when your pool is not included this time :)
LIVE Questions
🧢 Q12 Hello, how will you manage inflation that that we see in the last week, all tokens slowly decreasing in value because farmers choose to sell their gaining on a daily basis. I know that there will be another deflationary mechanics but from what I saw in the last days, in case of event, event specific coin gets pumped and returns to steady decrease. How would you stop this or do you want to stop this?
A: Okay, until now every tokens were in their inflation period. Blue will end it and goes to the deflationary period first among them. That means the end of the Blue farm. No more supply but only burning left. There will be no way to earn more blue but usage and burning of it will keep increase. People will have to buy them unless they hold it already to maximize there profit.
🧢 Q13 Are there any plans for air drop? Some legacy blue holders that did not have 100 blue might not have qualified for the last drop.
Airdrops were done when we didn't have any features to reward the holders. We'll provide more sophisticated way from now on.
🧢 Q14 Who are royal blue holders? Is there any condition?
Condition will vary in every situation. For example, there's only 'max cap' at the pool now. But later, some pools or vaults will have 'min cap'. Which means you'll have to hold certain amount of tokens to enter that pool. In some situation, there will be a condition of 'holding X amount of Y' to deposit. This way, some high yield pool will only be accessible to royal holders.
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