Eleven Finance — token structure and fee model.
TLDR;
A flexible fee model has allowed us to increase the burn rate and buy pressure on our $ELE token by %466 this was achieved through lowering the developer fund and controller allocation and reducing ELE dividends to stakers.
What a whirlwind the past 2 months have been!
The launch of Eleven Finance has brought with it tremendous growth and innovation. As such we’ve hardly had a chance to catch our breath on our way to $185 million in total value locked on our platform and growing.
We thought this would be a good time to take a deeper dive into what makes Eleven Finance tick, and a deeper dive into the $ELE token.
It’s easiest to start from the beginning and recap our overall structure and distribution:
The ELE token is distributed in the following way:
Total ELE supply — 11,000,000 tokens
Real ELE total supply — 8,117,630 tokens. Total supply has been reduced by 2,882,370 due to pre-sale not reaching hard cap, as a result these tokens have been burnt;
https://bscscan.com/tx/0xa7cbf37fc09d41a582988a663a80a96c938e89889d1fc81a8cdf6782308a2d2f
https://bscscan.com/tx/0xaf8d6ef8a9ba7c2dfe8b0783ade3cc08351de3148257ebd388090d40bcb2774f
Of this real supply 8,117,630 tokens we have them split in the following way:
Presale — 20 % — 2,022,624 Tokens
Farming — 67.5% — 4,950,000 Tokens
Initial liquidity provided — 5% — 595,006 Tokens
Dev/Team — 7.5% — 550,000 Tokens
Of this our Developer/Team tokens have been locked in a time vested contract releasing 11% of this amount per month.
Farming rewards are 0.711 ELE per block. This is due to reduce further in the near future with a halving event. Of these rewards, distribution is more heavily weighted toward ELE stakers and ELE-BNB liquidity providers over other pools. Additionally approximately 35% of these rewards are being held to allow for our plans of cross chain expansion (initially to Fantom and Solana).
Flexible fee model — giving even more value to $ELE
The need to re-deploy our vault contracts with PCS shift from V1 — V2 allowed us the opportunity to add a flexible fee structure to our vault contracts.
We have always prided ourselves on our streamlined fee structure, as a yield optimizer who harnesses the power of compounding we know the impact of fees on overall returns. From day one it’s been pretty universal we charge a 0.1% fee on LP’s on withdrawal from our vaults and 1.5% fee on rewards only when the harvest function is called.
As we have grown, we have implemented more unique and complex strategies that continue to offer the best yields in the BSC ecosystem for our users. With this we have an opportunity to implement our flexible fee model, to continue to offer these strategies while giving even more value back to ELE holders.
With this is mind we now have the following fee model:
Compounding/Harvest fees; breakdown of distribution-
Whenever a vault strategy compounds it takes rewards that have been earnt by the vault, then sells these to build additional LP tokens, which are equally distributed to those in the pool. Whenever this occurs Eleven Finance takes a ‘harvest fee’, which is re-distributed throughout the ecosystem. This is one of the key functions that gives $ELE its value. With a little more than 2 months data and the growing Eleven ecosystem we have settled on the following breakdown of the harvest fee:
70.83% Buyback and burn $ELE —
This is a marked increase on our current model of 25%, this places more buying pressure on the $ELE token as our TVL increases. Keeping in mind we are a fixed supply token, we see this as a huge value add for $ELE, as we will eventually move toward a deflationary supply.
4.17% — $ELE distribution to ELE vault users-
Those with their $ELE staked in the single asset $ELE vault receive this portion of $ELE redistributed, as a dividend. Keep in mind this is in addition to farming rewards they may also get for farming from this vault.
12.5% Eleven Finance Developer Fee —
This is fee is distributed to the Eleven team to ensure we can keep building and growing, bring the best yield opportunities to those on our platform. As you can see this has been reduced based on our v1 structure.
12.5% Controller Fee —
This is the fee collected by the ‘harvester bot’ this bot calculates when this fee is equal to the gas cost required to compound or harvest the rewards of the vault and executes the ‘harvest’ function. The nature of this is that vaults with more volume and higher rewards will get compounded more frequently. Again as you can see this has been reduced on our v1 model.
Harvest Fees Amounts
Now that we understand the breakdown of how the harvest fee itself is distributed. We have the following harvest fees for our vault ecosystem:
2.2% Harvest fee for vaults using PancakeSwap strategies that involve harvesting $CAKE and compounding LP’s.
2.5% Harvest fee for custom Eleven Finance vaults using more complex strategies across a variety of platforms and compounding LP’s.
3.49 % Harvest fee on Eleven Finance vaults powered by WaultSwap. This fee breakdown is slightly different to the above table with the below distribution in place.
Withdrawal Fees
Withdrawal fees will stay at 0.1% for withdrawal from all vaults with LP’s, with the same distribution of this fee as per the v2 flexible fee model above.
Withdrawal fees for vaults with single asset staking (like single asset $ICE and $CAKE) will change to 0.2% with the same distribution of this fee as per the v2 flexible fee model above.
The exception to this is the single asset WaultSwap vaults (WaultX and WEX) where a 0.2% withdrawal fee applies, with the fee is split and distribution as per the ‘Eleven Wault Vault Fee Structure’ table above.
Conclusion
With Eleven Finance’s growing platform use with that naturally growing TVL, we feel we are setting ourselves apart as a unique yield optimiser on BSC. With this we are able to offer some of the best yields on some of the newest and most promising projects in the space. Additionally this fee review sees the value this creates returned to holders of ELE whilst not compromising on optimising gains for platform users.
