Concentric.fi
Ask or search…
K
📈

Buy Backs and Treasury

The Concentric protocol will take a 20% performance fee on vaults to maintain the health of the protocol and guarantee a stable and sustainable APR for its users and ensure further protocol development. 50% of the performance fees will be allocated to a guaranteed buy-back pool. The protocol may choose to deploy additional funds out of treasury for buy backs. Here are some key features of the dynamic buy-back mechanism:

Buy-Back Pool:

A percentage of performance fees generated by the protocol will go to the buy-back pool. This pool will be used to buy back CONE tokens from the market.

Constant Buy-Back Amount:

There will be a constant buy-back amount weekly, which will depend on the fees generated by the protocol over time. This means that the buy-backs will happen regardless of the price of CONE tokens.

Buy-Backs During Periods of Low Demand:

The rest of the buy-back funds will be used to buy back CONE tokens during periods of low demand or sharp price decline. This is done to ensure that the protocol buys back tokens at good valuations and maintains the health of the APR during difficult times. This helps to maintain TVL (total value locked) in the protocol.

Concentrated Liquidity During High Demand:

During periods of high demand, the buy-back funds will be used to provide concentrated liquidity to earn more fees for the protocol. This liquidity will be used to farm xCONE and CONE tokens, which can be burned in addition to the buy-backs. This dynamic use of buy-back funds is designed to ensure the best possible health of the protocol.