Assalaamu alaykum,
I have found an elastic token staking project where investors are granted a fixed apy but it’s under rebase formula as long as rebase is positive investors receive tokens
Investors exchange BNB to this token and by doing so they provide liquidity so more investors can exchange
With each buy and sell transaction taxes are collected and these taxes are distributed among different sectors treasury and risk free value for price support and some goes for tokens that are distributed and step occurs with each rebase which is every 30 minutes
They also use hyperburn to counter inflation
Risk free value will be used specifically to support price as a last step before negative rebase
As long as the rebase is positive investors receive more token ( staking ) in form of fixed interest of these tokens
I tried to dig deep to figure out if money is used in other yield farming or multi chain farming or lending but I found nothing they claim that it all based on taxes and fees from buying and selling
Is it okey to invest in this project ?
There is a liquidity fee, a treasury fee, and a risk free value fee taken on buys with a sell fee taken in addition to other fees on sells.
On deployment, fees are allocated as a 5% liquidity fee, 3% treasury fee, 5% risk free value fee, and 5% sell fee.
A liquidity-add is funded by selling half of the tokens collected as liquidity fees, pairing the received BNB with the token, and adding it as liquidity to the BNB pair.
The LP tokens received are sent to a specified Auto Liquidity Receiver address.
The remaining contract balance is converted to BNB where subsequently the treasury fee is sent to the Treasury address and risk free value fee is sent to the Risk Free Value address.
Quotes from smart contact audit report
Assalaamu alaykum,
After weeks of researches I found that this type of projects is based on some sort of ponzi scheme so it’s not permissible to take part in such projects
I contacted the developers and they said they will add utility to the token but in my opinion the major profit still comes from the ponzi thing so I avoided it and to whoever reads this my opinion is that it’s not permissible to jump in these type of projects
May Allah guides us all
1 Like