How exactly does this make our yield farm sustainable?
It's simple, really.
Most yield farms die because their native token does not possess any demand and people are constantly selling, which pushes APR of their pools down.
Eventually, since there are no new deposits because the APR is not high enough to attract new investors, the devs will not be able to continue development or buy back tokems as there are no more deposit fees being collected.
Swift Finance solves that completely as the pools will go on rotation and there will constantly be new deposit fees being collected thus allowing continuous fee sharing in our pools where SWIFT holders can stake and earn a part of our fees.This ensures there will be constant demand for SWIFT and ensuring a stable token value with high APR's every 7 days.
$SWIFT will have a capped maximum supply. Check out our Tokenomics to understand our sustainability plan.
With our low emission rate, it will take approximately 2 years before the maximum supply is reached.
This ensures that in the short term, we will not be overwhelmed with inflation.
What Happens When Max Supply Has Been Reached?
After 2 years when the max supply has been reached, the Yield farms would immediately be discontinued as there will be no new rewards that can be minted.
What happens next?
Once the yield farm is discontinued, there will be a brand new set of contracts that will be deployed following the "active rotation" concept which will continue to send out $SWIFT rewards.
These $SWIFT rewards will come from the continuous buybacks & fees collected from all the deposit fees over the span of 2 years.
Any new deposit fees collected from then on will also be used to buy back the token and be used as rewards for future pools.