TREND5 is the first Trend Token offered in 2023. It will be used as an example of a TREND5 token.
Base Trading Fees
The fees below are paid when users interact with the Trend Token portfolio to achieve any of the below transactions. These fees are not incurred when trading on external exchanges such as PancakeSwap, although their fee models will apply.
Buy Trend Tokens
Fee: 0.15%
Description: Buy Trend Tokens, with any asset in its portfolio (USDT → TREND5)
Referral: 40% savings for referral and 40% earnings for referrer.
XTT Discount: Up to 80% off for XTT holders
Sell Trend Tokens
Fee: 0.25%
Description: Sell Trend Tokens for any asset in its portfolio (TREND5 → ETH)
XTT Discount: Up to 80% off for XTT holders
Swap Tokens
Fee: 0.15%
Description: Trade one asset for another asset in the Trend Token portfolio (BTCB → ADA)
XTT Discount: Up to 80% off for XTT holders
For more information on the referral program and XTT Discount visit: https://blog.trendtokens.com/xtt-utility/
Incentive Trading Fees or Reward
There is a fee or reward in addition to the Base Trading Fee described above when using the Trend Token portfolio to buy, sell, or swap.
The fee will apply when a trader brings the actual allocations farther away from the desired allocation:
- User buys a token from the Trend Token portfolio when it desires more of it
- User sells a token to the Trend Token portfolio when it desires less of it
The reward will apply when a trader brings the actual allocation closer to the desired allocation:
- User buys a token when from the Trend Token portfolio when it desires less of it
- User sells a token to the Trend Token portfolio when it desires more of it
The goal of this incentive model is to introduce an arbitrage opportunity and thereby reward users for bringing the balances in the Trend Token portfolio closer to the desired allocations set by the dual-momentum trading bot. For more information on this system visit: _________________
|
Token |
Fee |
Reward |
|---|---|---|
|
BNB |
0.10% |
0.10% |
|
BTC |
0.10% |
0.10% |
|
USDT |
0.10% |
0.10% |
|
ADA |
0.15% |
0.15% |
|
ETH |
0.15% |
0.15% |
- TREND5 Incentive Trading Fees and Rewards as of November 2023
Performance Fees
Each Trend Token portfolio has a performance fee which is accrued every block when the Trend Token price makes a new all time high price.
TREND5 performance fee: 10%
Calculation
The performance fees are calculated based on the new all time high price and the last all time high price of the Trend Token
The simple calculation is as follows:
Trend Token Fee = (current price - previous all time high price) * performanceFee
= ($3.00 - $1.50) * 10%
= $0.15
Target Price = current price - Trend Token Fee
= $3.00 - $0.15
= $2.85
Final Trend Token Fee = Trend Token Supply * (current price/target price - 1)
= 1 000 000 * ($3.00/$2.85 - 1)
= 1 000 000 * 0.052632
= 52 632
In this example there will be 52 632 Trend Tokens minted and added to reserves from which the manager may redeem at any time. The manager may agree to use a percentage, such as 50%, to buy back and burn XTT from the open market.
Redemption
As performance and trading fees are earned, they are sent to the Trend Token reserves. The manager may redeem these fees at any time and they are sent to the feeRecipient wallet address.
For more information on the governance and wallets visit: https://blog.trendtokens.com/governance/
Conclusion
The fees associated with the Trend Token portfolio include the performance fee and the base and incentive trading fee.
Each of these serve a purpose in aligning the interests of all participants.
- Performance fee: aligns interest of manager / trading bot and holders
- Trading Fees: align interest of manager / trading bot and traders