The CEO of Drip Network, Forex Shark, was present during an interview to discuss the protocol’s sustainable mechanism, working process, and upcoming innovations.
Introducing Drip Network
Protocols with several use cases, including Non-fungible Tokens (NFT), GameFi, Decentralized Exchange (DEX), Automated Market Maker (AMM), Yield Farming, and more, utilize BNB Chain for their operations.
Most protocols on BNB Chain offer users one or more use cases, ensuring that they make passive income in the Decentralized Finance (DeFi) space. Amongst these projects is Drip Network, a deflationary daily Return On Investment (ROI) platform built on BNB Chain. The innovative platform, developed by CEO Forex Shark, a renowned name in the DeFi space, works with a unique mechanism that gives users up to 365% ROI.
Additionally, the protocol, in association with Animal Farm, its native Yield Farm, rewards users for adding liquidity. Users add liquidity in Drip and lock them in Animal Farm to get incentivized. BSC News interviewed the protocol’s CEO on June 10. Forex Shark, who got his name from early trading days, uncovered many essential details about the Drip Network, plus upcoming innovations.
Deflationary ROI Platform on BNB Chain
Drip Network’s core feature is its 1% daily ROI offering. The protocol makes this possible through its “Faucet,” a low-risk, high-reward contract with the exact mechanism of a high-yield certificate of deposit. Users who deposit the protocol’s native $DRIP token in the Faucet will receive a 1% daily ROI, corresponding to 365% ROI over a year.
Forex Shark during the interview, explained the mechanism in place to sustain the feature.
“We maintain this from the taxes placed on the DRIP token when it’s traded. We also maintain this through the mechanics of the system, rewarding people from staying in the system. For example, a regular transaction has a 10% tax on it, but if you compound in the system, there is only a 5% tax, just like if you buy, there is no tax, but if you sell, there is a 10% tax” Forex said. “We’ve aligned the incentives to reward people for buying and also remaining in the system.”
The CEO explains that users who deposit their tokens in the Faucet are rewarded with a 10% selling tax. The protocol limits the maximum payout, ensuring users don’t continue draining the system. Once they hit the 365% cap, they can no longer earn rewards.
“We have a global max payout which ensures that no one can withdraw more than 5% of the platform’s balance from one account. The most you could possibly withdraw from the system is 100,000 DRIP. The platform won’t let you withdraw more than this amount,” Forex added.
Another exciting feature sustains the Faucet is the added whale tax to transactions. For every 10,000 DRIP withdrawn by a user, an additional 10% tax is placed on it. For instance, if you hit the global max cap of 100,000 $DRIP, you can only withdraw 50% of it due to the whale tax added.
Also, there is still an additional 10% sell tax in place. According to Forex, the whale tax means that the maximum amount someone could earn and sell from a DRIP stake within the faucet is just 3% of the total supply of $DRIP.
“We put these limitations in place to ensure that people cannot exponentially grow their stakes to compounding and take too much-centralized control of the system,” Forex said.
Animal Farm and Drip Faucet
Animal farm is the first fully decentralized ownership farm. Users earn farm rewards tokens and governance tokens from the Drip flagship product. One of the core farms on Animal Farm is the DRIP-BUSD pair. Users get rewarded for adding liquidity to Drip Network via the pair locked in Animal Farm. This incentive structure ensures Drip Network has a deep decentralized liquidity pool because of the influx of users from Animal Farm.
There is also a 1% fee for depositing DRIP-BUSD LP tokens to Animal farm. This fee is sent to the Drip Network tax vault, offering another cash flow used to pay out the daily ROI. Therefore, Animal Farm helps replenish DRIP that is used to pay the daily ROI to users, providing more stability to the incentivized Faucet.
Users can also receive rewards by inviting others via a “Team Referral” structure to utilize the Faucet. To start earning daily ROI, users also need to join a team’s referral link or add their wallet address to the “Buddy Referral System.” According to Forex, the team referral structure is unlike traditional multi-level marketing or pyramid schemes that eventually collapse due to the high difficulty of sustainability because capital is centralized to the top accounts.
“We’ve modeled it after traditional referral structures that you see on Amazon or any of these major companies where one purchase is made, one referral bonus is given. The difference is we’ve set it up in a more fair way that can only be done with DeFi,” Forex told BSC News about the Referral structure.
So when you refer someone to stake $DRIP in the Faucet, he would get a referral bonus. When he stakes $DRIP again, the bonus will go to the user above you and end at the 15th person in the chain. The referral bonus is also the same for everyone, no matter how high they are in the hierarchy.
Drip Network’s DEX and Reservoir Solution
Drip Network has a native Decentralized Exchange (DEX), Fountain, that allows purchasing $DRIP without the 10% tax. The protocol created a unique liquidity provider model—Reservoir—for its native DEX. The Reservoir is the protocol’s solution for users that want to benefit from non-inflationary yield farming by adding liquidity to Drip. Forex explained how the Reservoir contract works.
“You send BNB into the Reservoir, the Reservoir then takes half of your BNB, uses it to buy $DRIP, and it adds the liquidity to our native DEX on Drip,” Forex disclosed.
When users utilize the Reservoir, 2% of their BNB deposits get locked forever. This creates an ever-increasing price floor because of the locked BNB tokens, eventually increasing the potential price of $DRIP each time someone sends BNB into the Reservoir. Simultaneously, 3% of the BNB deposited in the Reservoir is paid out to existing stakers.
Additionally, the Drip DEX offers time-waited liquidity provider rewards. This means that the longer you are a liquidity provider, the greater your rewards. Thus, the DEX, through the Reservoir, rewards people based on their duration rather than their weight of investment. Forex claims that the system would encourage users to become long-term investors.
Building on BNB Chain
Forex stated that he chose BNB Chain over Ethereum due to gas fee limitations, adding that Drip Network’s compounding structure was best suited for BNB Chain:
“You don’t want to be paying $50 to $100 to compound $30 worth of tokens. It’s very important for a system with compounding that the cost of transaction is low.”
The CEO and developer also declared that BNB Chain is currently the best network for DeFi because it’s more functional than the congested and expensive Ethereum network.
More Ecosystem Development
Drip Network offers users a stable ecosystem comprising the ROI Faucet, Reservoir solution, native DEX, Animal Farm, and a unique referral structure. The protocol will launch a new GameFi product soon. The protocol’s Animal Farm will also launch a version 2 model in a few weeks to bolster lending to PancakeSwap Syrup Pool.
The protocol earns a 30-40% Annual Percentage Yield (APY) from lending to the popular DEX. Thus, the decision to launch Animal Farm Version 2 is because it needs to be compatible with PancakeSwap’s V3 model.
“Animal Farm is about to go live with a V2 Model in a few weeks. This means people will be rewarded for buying and adding BUSD liquidity to PancakeSwap. This means that there is another cash flow of $DRIP from the fees associated with that farm going to the Drip Vault, and on top of this, we have a series of games that are coming to the Animal Farm.” Forex confirmed the upcoming innovations to BSC News.
One of the games, according to Forex, will incorporate NFTs that users can only purchase with $DRIP. Drip Network teased one of the games—PigPen—on June 10 via Twitter. https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3JlZnNyY19zZXNzaW9uIjp7ImJ1Y2tldCI6Im9mZiIsInZlcnNpb24iOm51bGx9LCJ0Zndfc2Vuc2l0aXZlX21lZGlhX2ludGVyc3RpdGlhbF8xMzk2MyI6eyJidWNrZXQiOiJpbnRlcnN0aXRpYWwiLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3R3ZWV0X3Jlc3VsdF9taWdyYXRpb25fMTM5NzkiOnsiYnVja2V0IjoidHdlZXRfcmVzdWx0IiwidmVyc2lvbiI6bnVsbH19&frame=false&hideCard=false&hideThread=false&id=1535284943705841665&lang=en&origin=https%3A%2F%2Fwww.bsc.news%2Fpost%2Fexploring-the-drip-platform-with-forex-sharks&sessionId=109db733af4beb0782b3d4346bc037eb0509abd2&theme=light&widgetsVersion=b45a03c79d4c1%3A1654150928467&width=550px
“It’s a major game. The kind of game that you would see outside of DeFi or crypto. A high-level game, and it’s already 90% developed. The majority of this game will operate on Animal Farm, but some of the items you will only be able to purchase with $DRIP,” the CEO shed more light on the game.
Another key point from the interview was Drip’s User Interface (UI), which the development team will change shortly to get optimal SEO coverage. The new UI template will be modeled according to a high-tier investment bank and will update after the Animal Version V2, and a GameFi product goes live.
Drip Network is an elaborate ecosystem on BNB Chain, comprising advanced products to give users stable income. The protocol plans to keep innovating on the network, as stated by Forex Shark. BSC News strives to keep you informed of protocols such as Drip on the BNB Chain, which are becoming industry standards.
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Source : bsc.news
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