💰Initial Funds Use

How the Sustainable Business Model of Halo Yield Works and How Funds Will Be Used in the Future

The deposit fees allow Halo Yield to garner operating capital while funding reward pools for $HALO holders, which will run from launch day through the second month of operation. These reward pools will establish a floor price using pools and market cap for $HALO, helping to reduce sell-offs.

Additionally, the absence of deposit fees on $HALO pools and farms offers immediate utility and yield for $HALO holders.

Another core component of Halo Yield is bonding; users will be able to sell $HALO-$ETH liquidity to the protocol to earn $HALO at a discount. This approach allows the protocol to accumulate Protocol-Owned Liquidity (POL) and ensure a liquid token without relying on mercenary liquidity providers or an inflationary token model.

Rehypothecation of Funds from Deposit Fees to Pools & DAO Funds:

  • 75% of fees go to pools, 25% to DAO operations until $200,000 total reached

  • 50% of fees go to pools, 50% to DAO operations between $200,000 - $500,000

  • 25% of fees go to pools, 75% to DAO operations after $500,000 total reached

This structure ensures that a significant portion of the funds is directed towards rewarding participants and maintaining the protocol's operational needs, creating a sustainable and engaging ecosystem for all users.

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