Today, our team would like to share the architecture behind Supreme Finance HYPE token economics in a much simplified and easier way, than the whitepaper. Basically, it will outline the differences between Supreme Finance and other platforms, and distinct token uses for HYPE as well.
In Supreme Finance, a small amount of 0.3% liquidity provider fee is taken out of each trade and added to the reserves, which is the standard across Uniswap and Sushiswap. While the ETH-ERC20 reserve ratio is constantly shifting, fees make sure that the total combined reserve size increases with every trade. This functions as a payout to liquidity providers that are collected when they burn their pool tokens to withdraw their portion of total reserves.
This is a model of guaranteed arbitrage opportunities from price fluctuations should push a steady flow of transactions through the system and increase the amount of fee revenue generated. Also, it is a way of solving scalability and liquidity problems to our platform.
Unlike other, 0.25% goes directly to the active LPs of the pool, and 0.05% gets split with a 7:3 split amongst $HYPE holders and original $HYPEX holders. With HYPEX, it is distributed to only early-bird supporters and participants to Supreme Finance, and there are more benefits and potentials to the use of HYPEX, which will be explained in detail on upcoming Medium articles.
0.3% is used as fees just like mentioned before like Uniswap in transaction fee. However, we have created the Simple Node, which is a super simplified, easy to use UI/UX that makes it usable by virtually anyone. A Simple Node takes an additional 0.3% of fees and is used in different ways in which can be categorized into the following.
- 0.1% is put into a pool that will later be used to further incentivize users to educate the community and participate in the further adoption of Supreme’s digital economy.
- 0.1% goes to the dev pool as revenue for the team.
- 0.1% goes to the treasury for further support of the Supreme ecosystem. This fun part about the simple mode is that we will be implementing a simple mode to EVERY part of our UI and services offered. Even on the services offered through a 3rd party API we will be charging an additional 0.3% service charge on those transactions made in simple mode.
The matrix behind Supreme Finance and HYPE token is for new users to onboard the platform and experience the smooth and accessible features in a much more beneficial and attractive way. In the next report, we will be discussing in more detail the use of HYPE and HYPEX token and the architecture behind it.