After the first couple of successful Alpha Testing rounds, we gathered enough feedback and have made some exciting changes for upcoming rounds.
- Removal of Unwrap Fee
- Major update in fee distributor smart contract
- Ability to change default transfer and unwrap fees without deploying a new Crucible
Reverse Arbitrage Opportunity with 0% Unwrap Fee
With the new updates, there won't be any unwrap fee i.e. 0%. What does it mean? A perfect opportunity for smart arbitrage users to use this whenever there is a price difference in favor of cFRM or cFRMx. As an example, if the current price of FRM is $0.2 and cFRM is $0.1, the arbitrage user will be unwrapping his/her cFRM tokes to get equivalent number of FRM tokens. Unwrapping Crucible tokens into base tokens will always give you the same number of base tokens as Crucible tokens.
In the above example, if the user unwrapped 100 cFRM tokens back to 100 FRM tokens, the user can then go to Pancakeswap and swap those FRM back to cFRM. Because of the price difference described in the example the user will be getting twice cFRM i.e. 200 cFRM by swapping 100 FRM (minus the fees). The user eventually got 200 cFRM from initial 100 cFRM tokens.
Major Update in Fee Distributor
Previously, the fee distributor would distribute the fees to LP and standard staking users based on a logic that saved gas fee. It would not distribute all tokens at once in one transaction based on the 80/20 split. Instead it will be sending the share to either one of the two and will average it out over a large number of transactions. While this approach was helpful in saving gas fee, it resulted in waiting for more transactions to occur before the split ratio of 80/20 can be achieved. Here is the overall division of fees with the initial 10% burn:
- Total Burnt: 10%
- LP Staking Pool Share: 72%
- Standard Crucible Staking Pool Share: 18%
We have now changed it so that on every transaction happening on Crucible that generates fee, 10% of it will be burnt and the remaining will be sent to LP token staking users and standard Crucible staking users with 80/20 division right away.
This will allow end users to get the rewards right then and there instead of waiting for more transactions to occur.
Update Fees Without New Deployment
The first version did not allow to update default transfer and unwrap fees post deployment of Crucible which means we had to deploy new Crucible FRM and FRMx tokens every single time there was any change in any fees on Crucible. Our engineers have added the dynamic functionality for admin to update the fees at any point in time post deployment without having the need of redeploying Crucible.
This is a great addition since it allows us to change our fees structure on the go while we are gathering feedback. Having said that, we still had to deploy a new Crucible as this feature did not exist on the previous one. What does this mean for Alpha Test Round 1 and 2 users? You will need to remove your staked tokens both standard and LP followed by unwrapping Crucible tokens back to base tokens.