Why AutoCompound is essential for CERBERUS, GARUDA and other transaction-taxed tokens holders?
WHY AUTOCOMPOUND IS ESSENTIAL FOR CERBERUS, GARUDA AND OTHER TRANSACTION-TAXED TOKENS HOLDERS?
Recently we have been contemplating and trying to decipher what aspects are essential for users of CERBERUS and GARUDA, along with other transaction taxed tokens.
GarudaSwap Explodes onto Binance Smart Chain — DappRadar Blog, May 10 2021
Yield Farm Cerberus Burns 8% of Every Transaction — DappRadar Blog, May 27 2021
One such feature, that is often commented on, which can keep farming token, like CERBERUS and GARUDA’s, price stable, whilst also give huge potential for growth is Auto-compounding.
Why would we like our Cerberus holders to have the autocompound technology?
If we are able to provide auto-compounding, users will be incentivized to keep their coin in the auto-compound pool and not withdraw their coins as there is no incentive to do so. Whilst the coins are auto compounding users can still reap the benefits of high APY (3000%++). This will encourage users to keep their coin rather than selling which in turn will bring down the selling pressure. Less selling, results in more scarcity, which drives the coin price up. This increase in coin value will also drive up the APR RATES even further.
However auto compounding is not easy to implement. In the past we have tried to implement it, and, there’s a paradox. The one thing that we cannot do, right now, with the current CERBERUS contract code is Auto-compound.
The problem lies in the feature that makes it attractive to start with THE BURN, the 9% transaction tax is hardwired into Cerberus code it cannot be unmade or bypassed. The 9% Transaction tax is also a key factor in the mathematics of the coin, it IS the burn that keeps the price stable, but it is also preventing auto-compound technology from working! This happens not only for CERBERUS but for all coins with transfer fees like Safemoon, Garuda, Panther and so on.
SO WHY CAN’T WE AUTOCOMPOUND CERBERUS?
Many have asked ‘Why can’t CERBERUS be auto compounded? And those who work in the vault industry in projects such as Swam, Beefy or Auto know that Auto-compounding is not easy. Auto-compound technology depends on moving coins from contract to contract, so each round of Auto-compounding usually transfers the coin at least 6 times, often as many as 8 times. Unfortunately for reflective token like GARUDA and CERBERUS, which have a built in transaction fee of 8% — 9% these multiple transfers will results in a total fee of 48–54% from each transfer, which at best, reduces profit and could even lead to a loss.
After many hours of research and debate, throwing ideas around and trying to find a solution that will allow for auto compounding whilst not effecting users income. We have come to the following conclusion.
With current code; AUTO COMPOUNDING is not possible. The code can not be fixed, it is impossible to auto-compound CERBERUS/GARUDA and other transaction-taxed coin like Safemoon, Panther, etc.
To test the limits of the system, in the past we asked Beefy.finance to trial it for GARUDA. They prepared the vault and we performed a test. Unfortunately, even Beefy vault was not efficient enough, on their system the coin moves 6 times making the transaction tax 48%. That’s why you can see we have 3 vaults for GARUDA LP on Beefy but none of them is a GARUDA vault.
As you can see we have been very open with our users from the beginning, we are learning as we go and as we grow and one simple question remains.
WHAT IS THE SOLUTION FOR AUTO COMPOUNDING CERBERUS AND GARUDA?
A new coin with vault-friendly technology that can help auto-compound CERBERUS.
THOREUM is our solution, it is essentially a new reflection coin (with 10% transaction tax) that users can mine using liquidity. This new coin will have a technology that can whitelist all the routers temporarily, excluding them from the tax fee, so every time it compounds, THOREUM will compound without a transaction fee, and sell to buy back CERBERUS.
After THOREUM comes out and auto-compounding vault is enabled for CERBERUS, we hope to incentivize users for holding onto their coins, rather than selling them.
For our current and future clients using CERBERUS (GARUDA) their experience will not alter, they will simply see a normal CERBERUS vault, where they can stake their CERBERUS, without being involving in the complicated mechanism at the back end. This pool will auto-compound CERBERUS with an ultra high APY of thousands of percent, incentivizing people not to unstake their CERBERUS.
In this auto compounding vault, you may keep your CERBERUS and watch your CERBERUS grow without harvesting and redepositing back, without having to any worry about it.
As for all the earned CERBERUS from other pools? You can keep putting these CERBERUS into this vault in the same way. This will increase the value of CERBERUS.
Get ready with your CERBERUS, the coming out of THOREUM is very near!
The 1st Vault on market that can auto-compound RFI tokens (Safemoon, Garuda, Cerberus, Panther.. and other transaction taxed tokens) using our special “Thunder Vault” Technology.
THOREUM Vaults save users time and enable higher yields through more frequent compounding, more efficient gas utilization, and other creative automations.
When you deposit into a Vault, your tokens will grow over time. You do not need to manually reinvest in the vaults.