OILZ.Finance Auto-Liquidity Engine ( OALE )
Market Liquidity is of utmost importance and plays a vital role in allowing the buy & sell of $OilZ tokens on PancakeSwap.
In layman’s terms, think of Liquidity as a big pool of money that is split 50/50 between $OilZ tokens VS $BNB tokens. There is a conversion ratio that is set to the amount of $OilZ you can get with BNB, for example: 1 BNB = 89.86 OilZ.
When somebody buys OilZ, the price per OilZ will go up and the ratio above will also change at the same time to account for this. The same goes in the opposite direction for sells.
Liquidity allows for anybody to buy & sell their OilZ/BNB at anytime, however the less money/liquidity there is in the pool, the worse price you get so what our OilZ.Finance Auto-Liquidity Engine (OALE) does, is add more liquidity to that pool by itself and therefore solving that issue.
Here is how the OilZ.Finance Auto-Liquidity Engine (OALE) works:
Every 48 hours at 22:52:48 UTC time our OilZ.Finance Auto-Liquidity Engine (OALE) will inject automatic liquidity into the market. On each buy order there is a 2% tax fee or sell order there is a 5% tax fee that automatically gets stored into an Auto-LP wallet and built into our protocol’s smart contract is the mechanism which smartly takes the 50% of the amount of OilZ stored in the wallet, and will automatically buy BNB at the current market price.
The remaining 50% of OilZ in the Auto-LP wallet will be used for the OilZ side of liquidity, therefore giving equal an 50/50 weighting of OilZ/BNB which will then be automatically added as new, additional liquidity into the market pair and raising the amount of liquidity in the pool.
The OALE will do this every 48 hours by adding more and more liquidity to the pool which will allow $OilZ token holders to easily sell their tokens at any time with little to no market slippage. It will also aid in maintaining protocol stability to make sure the APY is upheld for the entire life of OilZ.
The Fixed APY
APY is the acronym for Annual Percentage Yield. This measures the real rate of return on your principal token amount by taking into account the effect of compound interest. In the case of Oilz.finance, your $OILZ tokens represent your principal, the compound interest is added periodically on each Epoch (every 15 minutes). Your new principal amount is your then current OILZ token amount, plus your new rebase token amount. This total amount is what gets calculated for your next rebase rewards.
The interesting fact about APY is that your balance will grow over time! For example, with the compound interest of 0,0243%, if you start your balance of one OILZ token on the day one, your balance will be 0,0243% OILZ tokens.
How The APY Is Calculated?
Simple Interest Equation (Principal + Interest)
A = P(1 + rt)
- A = Total Accrued Amount (principal + interest)
- P = Principal Amount
- I = Interest Amount
- r = Rate of Interest per year in decimal; r = R/100
- R = Rate of Interest per year as a percent; R = r * 100
- t = Time Period involved in months or years
With the base formula, A = P(1 + rt) derived from A = P + I and since I = Prt then A = P + I becomes A = P + Prt which can be rewritten as A = P(1 + rt)
Please note that rate r and time t should be in the same time units such as months or years. Time conversions that are based on 365 days/year have 30.4167 days/month and 91.2501 days/quarter. 360 days/year have 30 days/month and 90 days/quarter.
Simple Interest Formulas and Calculations:
A = the Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. Where r is in decimal form; r=R/100; r and t are in the same units of time.
The accrued amount of an investment is the original principal P plus the accumulated simple interest, I = Prt, therefore we have:
A = P + I = P + (Prt), and finally A = P(1 + rt)
- Calculate Total Amount Accrued (Principal + Interest), solve for A A = P(1 + rt)
- Calculate Principal Amount, solve for P P = A / (1 + rt)
- Calculate rate of interest in decimal, solve for r r = (1/t)(A/P — 1)
- Calculate rate of interest in percent R = r * 100
- Calculate time, solve for t t = (1/r)(A/P — 1)
OILZ Buy & Sell Fees
OilZ buy and sell fees are an important component of the OAP. They provide capital for performing critical functions to the protocol.
Other protocols utilize selling bonds to support the same functions as OilZ fees, but we believe that approach is riskier because if bonds are not purchased, the token can lose its support and spiral downward in price as we have seen with several of these bond based protocols.
Selling bonds also costs token holders. It reduces the amount of APY that can be offered and eliminates the ability to offer a stable APY.
The amount of the fees (11% for buys and 18% for sells) allows OilZ to provide $OilZ holders with a stable high yield of 498,249% annually.
One additional benefit of the high fees is that OilZ is the only token that benefits when Whales dump because the fees collected support $OilZ holders.
Utility of $OILZ Trading Fees
1. Placement and Utility of $OilZ Trading Fees:
Buy Trading Fees:
The Defenders: 3%
Sell Trading Fees:
The Defenders: 3%
LP — Trading fees goes to backing the liquidity of the BNB/OilZ pair on PancakeSwap ensuring an ever-increasing collateral value of $OilZ.
IFV — Trading fees are stored in the OilZ Insurance Fund which helps sustain and back the staking rewards provided by the positive rebase.
Treasury — Trading fees go directly to the treasury which supports the IFV and provides a marketing budget for OilZ and funds new product development.
The Defenders — 3% of all $OilZ traded are burnt in The Defenders. The more that is traded, the more get put into the fire causing the fire pit to grow in size, larger and larger through self fulfilling auto-compounding which in return acts to reduce the circulating supply of $OilZ and keeping the OilZ protocol stable.
Telegram chat: https://t.me/OilZFinanceChat
White Paper: https://docs.oilz.finance/whitepaper
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