LinkBased Community Update 12/26

First off we want to thank the LinkBased community for your support. Our presale sold out in seconds, and though there has been some mistakes along the way our community has held by our side. Thank you.

Going Forward

  • Transparency
  • Communication
  • Admins present
  • Consistent updates
  • Successful Rebases

LinkBased (LBD) acts as a derivative of the Chainlink token $LINK. With this token your are able to trade Chainlink’s price movement for 1/10 of the price. LinkBased has also launched our rewards program — Valhalla — where you can earn 1200% APY while doing it. To keep the supply deflationary we take a 3% fee from each transaction as a cohesive tax and distribute it among the participants of the Valhalla pool.

These features have not been implemented in any other rebase protocol. Going forward in the coming weeks, we plan to implement a DAO and completely decentralize the system to allow token holders to vote on proposals and contribute to the growth of the ecosystem. We believe this will increase incentive to hold the token, among its act as a derivative.

Challenges in Week 1

  1. To compensate for the early mishap we had our rebase-drop the very next day along with our official rebase, a few hours later.
  2. Day three, we held an off-chain vote for disregarding the next day’s rebase to equate out the gifted rebase. The community voted to cancel the rebase; however, our security bot wasn’t turned off before turning the main cronjob off. So, the security bot turned the cronjob on automatically and the rebase method was called.
  3. Today, we had our rebase but it was delayed by 20mins, as last day during our rebase call we had a lagged transaction confirmation due to Ethereum’s transaction mining. We have since solved this by fetching and inputting dynamic gas prices from the gas station, from now on.

Using the Uniswap TWAP oracle for rebases. There has been confusion about the way the stream prices are calculated, in LinkBased. The system calls the update function in our contracts every 24 hours and it fetches the average price in that period. This acts as our stream price against which the target is reached when the rebase method is called. This is a powerful tool in our quiver as it lets us dampen the counter-cyclical pressures, which deters us from reaching the target price. For example, if the average is greater than the current price it doesn’t go the target price in one shot as the current price becomes virtual for the system at that point, which in effect makes the network more stable over time.

This also come at consequences as it makes the system more challenging to find the pegged price after a run of negative rebases. Going forward we will use the Uniswap time of rebase target to get the peg to the appropriate price and start the next run of positive rebases. We may implement the TWAP again in the future, however we believe this will be the best option to jump-start the system to where it needs to be.

Warning: Do not trade rebase tokens if you do not know how they work.

When a negative rebase occurs you will have tokens removed from your wallet because the price is higher, you will have the same amount of value. During a positive rebase the amount of tokens in your wallet will increase and the price will be lower; however, you will have the same amount of value.

The Valhalla

There are two pools for every Valhalla pool (such as LBD/ETH, LBD/USDT).
And these two pools have, two-child pools namely:
1. Locked Pool
2. Unlock Pools

Every week, the Locked pool is updated with the tax generated from the network by calling the lockpool() method. The amount locked gets to the unlock pool over 7 days.

Q: Who holds the LBD tokens and the LBD-ETH/LBD-USDT LP token?

Q: How do you get rewarded?

Ownership of the unlock pool equals to:
participant_staking_token_time / global_staking_token_time

Suppose there are two users in the system Bob and Allice. Bob has staked 10 tokens for 1 day, Allice has staked 5 tokens for 3 days.

bob_token_time = 10 tokens * 1 days = 10allice_token_time = 5 * tokens * 3 days = 15Global_staking_token_time = (bob_token_time) + (allice_token_time) = 25 token_daysBob owns (10 / 25) = 40%
Alli owns (15 / 25) = 60%
* These percentages assume the maximum bonus from the bonus period has been met.

The ownership percentage is decided based on the unlocked pool. A participant gets their share of the currently unlocked tokens from the unlocked pool as soon as she withdraws the staked tokens, irrespective of the locked tokens that are still waiting to be unlocked.

Ownership percentages and token unlocks are calculated block by block.

Q: What’s the Bonus Period?

When a participant begins his/her staking, it begins at a 1X bonus multiplier on the reward that the stake fetches. This multiplier increases throughout the bonus period, to a maximum of 3X after two months. In layman’s term each additional month a participant holds, he/she receives ‘an extra X’ on their multiplier, up to a maximum of 3X.

If you withdraw after 5 weeks, you would get half-way between 2X and 3X.

Each individual stake amount marks the beginning of its own period. So if you stake two times then withdraw, the first stake and the second stake may have different bonus amounts. Withdrawn stakes always start with the newest staked tokens.

If this sounds complicated, there is really just one thing to keep in mind:

  • Keeping your stakes for at least 8 weeks will multiply your returns.

Rewards originated from Valhalla stands to fetch over 1210% APY, and as of now over 22,500 USD in LBD has been accumulated for distribution to Valhalla participants over the next week.

Glory Awaits

Our team has not stopped developing and are on the cusp of a much greater protocol that can create rebase derivatives, seigniorages, and pools with many different projects and parters, some of which we have already had conversations with. Our community is LinkBased biggest treasure and we have not forgot that.

We have applied and been speaking with the CoinGecko team and expect to be listed soon. Likewise we have submitted information to Etherscan to increase the Dextools score and should be updated in the following days.

Hope this post, answered most of the questions that people had, if not please ask in the LinkBased Telegram.

Thank You.

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