Unlike Bamboo, Rhinos are strong, sturdy, stubborn and defensive. They like to stay put and they love to protect their territory.
As the goal with Bao products has always been to incentivize long term stakers and robust liquidity, the community noted the need for ways to incentivize long term locked liquidity that has strong incentives for using it long term, but penalties for removing it, to create stability in the ecosystem.
Half of all protocol fees generated by Panda products are used to buy back RHINO from PandaSwap and burn them, with each of the transactions subject to the usual transfer fees outlined below - distributing RHINO tokens to holders in the process.
Each deposit or withdrawal of PNDA or RHINO to the staking contract is subject to a 2% fee
Every RHINO transaction is subject to a transaction fee, beginning at 12% and reducing to 0% after 42 months. This includes withdrawing from and depositing to the RHINO staking contract, adding or removing liquidity from liquidity pools, transferring, selling or buying.
No transaction fee will be taken once RHINO is deposited into an LP token, so you can stake or unstake from the farming contract, or transfer the LP token to another wallet without a fee.
50% of the transaction fee will be added to RHINO/BNB, as forever locked liquidity on PandaSwap and the other 50% will be split between RHINO holders with the burn address starting off with half of the RHINO token supply.
Over time the burn address will accumulate RHINO, increasing the burn rate from 25% of the transaction fee.
Users who lock up their Panda long term, expose themselves to a set exit penalty and put some permanent liquidity into the pool earn their governance tokens from protocol revenue, transfer fees, then if you stake the LP, staking rewards. Earning Panda from 3 sources instead of just one!
It allows users to choose their level of risk and commitment to the ecosystem and its liquidity, in exchange for deciding how quickly they want to acquire governance tokens from Panda.
The Rhino experiment is risky and volatile, but self contained where community members can decide if they want to opt in to this higher risk experiment.
What we are trying to establish is:
Will incentives and penalties convince people to stay in liquidity pools longer, which can give stability and floors to small synths that normally lack enough liquidity to trade?
Can the incentives and penalties be fine tuned to reduce volatility enough that we can have a lower collateralization rate needed for synths?
Can a partially locked liquidity pool create enough of a liquidity floor that even if an asset is crashing and people are leaving the pool, the pool has enough of its own liquidity to safely liquidate bad synth positions without risking the protocol?
Are people willing to opt in to a second level system that burns governance tokens at a higher rate if it means they also get more governance tokens but also take on more risk?
We don’t expect that Rhino will succeed in all of these but even when an experiment fails at a question we get valuable information on how to improve the process and get it right.
150B max Rhino supply.
75B starts burned. 22.5B starts locked in the community vault. 22.5B starts in the dev team vault. Each of these addresses will accumulate RHINO as it is distributed to holders via transaction fees
15B was put into the 1:1 swap. There is another 15B that the deployer has that could be a top up if the community votes for it to be so.
So, of 150B Rhino, there is only 52.5B left as a hard cap. But since it perpetually burns more and more it won't reach that circulation.
The eligible circulation excluding vaults is 15B unless the community votes to top it up.
Based on a blend of custom code and Balancer, this is the core code we plan to use for Bao Baskets
One of the challenges with the Bao Basket plan is once again not the code, but the fine tuning of the economics. Most teams run simulations before launching projects with delicate economics, but people don’t behave like computers.
So we are going to start slowly building out a test of Bao Baskets on BSC that we’ll call Ponds.
We’ll use the Panda ecosystem to power it, and focus on testing with low value soft synth indexes at first. The first index will be called “Memedex” a simple index of meme coins that are available on BSC.
Over the coming weeks we’ll deploy Ponds to BSC, initially without an interface, and begin to run small tests with advanced users directly interacting with the contracts until we’re confident that we can scale it up.
To start Ponds will not have any incentive to use it and will only be a testing function. Once we’re confident in its scale, we’ll deploy a user interface and create Panda Farms that reward people for staking the synths they create in ponds. Once we test that for a few weeks we’ll be able to roll out versions to other networks to power more complex indexes and reward systems.
Robo is the subproduct that is still in the earliest stages.
We know that users on chains other than Ethereum are used to automated farming, but that most automated farming contracts are not designed to support complex ecosystems, synths, indexes, or protocols that have a penalty fee.
As you know Baos stands for Balancer Automated Options and Synths, and this is the first stage of building out that automation.
Robo will be system for users to automate vaults automatically in the Bao and Bao franchise ecosystems, with strategies that any developer can design and contribute.
You can think of it as YFI+AutoFarm but for the Bao ecosystem. It will allow users to create automatic compounding, farm switching, LP rebalancing and other complex strategies.
The very first version of Robo will be on BSC and integrate with Panda for automatic compounding of farming rewards.
After some testing we’ll open up a strategies module and roll out versions of Robo on each chain.
Our intention is for either a V2-V3 of Robo to integrate the Gelato Network and arbitrary network bridges to let users manage their vaults on all EVM networks from one wallet. Meaning in the future Robo will hopefully be able to manage balancing your mainnet, xdai and BSC positions back and forward for you.
While Robo will exist to make the lives of users easier, its main priority is to actually act as an automated crosschain liquidation keeper. Robo will automatically identify synth positions that are over their liquidation amount and leverage a strategy to gracefully unwind them by selling the liquidity across multiple swap sites on multiple chains in order to get the best liquidation price at the least impact. On the backend Robo will also leverage its own instance of Hummingbot to arbitrage the slippage of these networks against centralized exchanges, allowing us to manage much larger positions than other onchain protocols. This was why we set up such a strong funding grant for new features for our friends at Hummingbot.
We expect to have very basic versions of the V1 of Robo ready for BSC auto compounding in Q2 2021, but the more complex cross chain automation is something that is a larger vision that will take time and a number of development versions to reach.
Right now, we don’t plan to have Robo have its own token, it will simply be a feature that can be used within the Bao Finance ecosystem and all of its franchises, but we’ll continue to evaluate this as often cross chain infrastructure needs to be able to incentivize validator nodes and pay gas fees on two different chains so some sort of functional utility token may be needed in the future but ideally we’ll leverage Bao and Panda if we need to do token payments for Robo.