YieldTree
Last updated
Last updated
A revenue-generating asset that requires an initial investment and rewards the holder with long term profits and bonuses.
The supply of $FOREST is locked in the reward pool, and is only emitted by YieldTrees, therefore, YieldTrees are the only source of new $FOREST tokens.
A YieldTree can be purchased after the $FOREST token has launched.
The investor has to lay in 7.5 $FOREST tokens, and a specific amount of AVAX that equals to 2.5 $FOREST. This exact amount of AVAX will be automatically calculcated and displayed.
The exact $USD price per YieldTree is calculated at the time of transaction, so this depends on the current price of $FOREST.
The YieldTree generates $FOREST tokens starting immediately after purchase. These tokens can be claimed or can be used to create a new YieldTree once enough tokens have been generated. This is called compounding.
The first 10 $FOREST tokens generate at a faster rate than usual to speed up the return on investment of the holder. Once this has completed, the daily rewards lower using a decay process until the base daily reward rate (0.06) has reached.
Start ROI: 0.1 $FOREST
Daily decay: -0.002 $FOREST
Daily base rate: 0.04 $FOREST 0.06 for the first 365 days after public launch
Unlike outright buying a new YieldTree, compounding does not require the investor to pay a certain amount with AVAX. 10 $FOREST tokens will be taken from the wallet instead.
View the diagram to see where our profits of an investor buying a YieldTree go to.
As can be imagined, over time as more and more YieldTrees are created, the reward pool cannot sustain the outgoing $FOREST. This requires the treasury to help offset this expense, causing our investments to grind to a halt.
To remedy this, Forest Financial will have a maximum amount of YieldTrees that will be sold by the protocol. Once this limit has been met, no new YieldTrees are able to be bought from the protocol. This also allows us to calculate our daily expenditures and take them into account when designing the plans to grow our treasury.
