Key to maintaining sustainability despite the high APR is Safuu’s Fire Pit , which is a buyback-and-burn contract that reduces the circulating supply of $SAFUU tokens. According to the company’s website, 2.5% of all $SAFUU traded are burnt in the Fire Pit.
Additionally, 5% of the total trading fees are stored in the insurance fund, which helps sustain and back the staking rewards provided by the positive rebase. The SIF prevents flash crashes of the $SAFUU token by maintaining price stability and greatly minimizes the downside risks of DeFi.
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27 reads
CURATED FROM
How SAFUU Protocol is Aiming To Make DeFi More Scalable and Sustainable
thenewscrypto.com
5 ideas
·123 reads
IDEAS CURATED BY
Interesting new mechanism brought to market by SAFUU, I would stay away for a while until proved due to close enough resemblances with the Terra ecosystem, but one might just need a deeper dive into these mechanics to make a decision.
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