🔥Buyback, Burn & Distribute

From April 11th 2024, STFX remodelled its protocol fee formula in order to implement the much anticipated $STFX Buyback, Burn & Distribute model.

Trading Fee Remodelling

Previously, STFX took a protocol fee on profitable vaults only, up to 5% dependent on a manager’s staking tier. We have now swapped to a flat 0.1% on ALL vaults from the get go, resulting in a more consistent, and often cheaper fee structure for users of the dApp.

More importantly is how STFX will utilize these protocol fees to further benefit the dApp, and its native token, $STFX.

$STFX Buyback, Burn & Distribute

With the most recent update, we are further cementing the connection between token and dApp, by taking all of the protocol fees, and introducing a Buyback & Burn, as well as a Buyback & Distribute structure to STFX.

All of the trading volume on the STFX dApp will result in protocol fees, of which will be used to buy the $STFX token on the open market. These tokens will be utilized in two ways:

Buyback & Burn

A simple, proven concept. Volume results in buy pressure of the native $STFX Token on the open market, of which we will burn a large amount, permanently removing supply on a weekly basis, turning the token into a deflationary asset, scaling perfectly with the increased use of the dApp itself. The more users and activity, the more $STFX token buy volume, the more $STFX tokens burned.

Buyback & Distribute

We have introduced an algorithm to also distribute some of these tokens back to users of the dApp. The more volume a user brings to the STFX dApp, the more they will benefit from the Buyback & Distribute system.

Staker Rewards For All Trade Volume

The Buyback & Distribute will enable Stakers of the $STFX token to receive further rewards in the form of $STFX for every trade they are a part of, up to 0.05% of their volume (dependent on their Staking Tier). This will be another addition that will further incentivize users to hold and stake the native token, increasing the total staked $STFX, and adding more benefits to being a part of the STFX ecosystem.

You can start staking your $STFX at stfx.io/stake and begin earning rewards for every trade you are in.

Frequently Asked Questions

How is the protocol fee applied and calculated?

The protocol fee is taken upon the entry of a trade, where 0.1% of the total trade size will be taken as the fee.

When is this fee applied?

The fee is applied to the trade size upon the deployment of a trade. For example, if you raise a vault that has $1,000 collateral with 10x leverage, and you open a partial for 50% of the trades' total size ($5,000), when you close that trade, you will only be paying the protocol fee for the size of the trade that you have opened.

The protocol fee is not charged for closing trades, only opening.

Who pays the protocol fee?

The fee is paid and split proportionally by all of the investors in a vault.

Does staking offer any advantage in relation to this protocol fee?

The Buyback & Burn rebate system offers a percentage based rebate to a users total trade volume, dependent on their staking tier.