Volume Driver Module Explained

Volume Driver Module works through the Volume Driver Contract (VDC), which is a wrapper contract that is part of our DEX.

What Volume Driver does is simple: it will keep track of every $BASED buy, and it will reward those buyers at the end of set periods, at least twice per week. The Volume Driver Module rewards buyers both based on the amount bought and also randomly. The rewards for these buyers are allocated from the 4% sell tax on $BSHARE which creates BSHARE-FTM LP once a week.

For the end user, the process is as simple as it gets. The DEX user does nothing but buy $BASED, they don’t even have to hold the token as sales are not deducted from registered buy amounts. Then, the VDC will use Chainlink’s Verifiable Random Function (VRF) to pick two winners, one biggest buyer, and one random buyer and the rewarded LP will be automatically sent to them.

Here’s how the periods for this reward system work: One epoch is 6 hours. The VDC will be rewarding 1 random buyer and 1 buyer who bought the most amount of $BASED after 14 epochs if there is at least 1 buy within each consecutive epoch up until the 14th. 14 epochs are 3.5 days, which means that Chainlink’s VRF will send the rewards at max 3.5 days after the previous period. If there isn’t at least 1 buyer within the current epoch, then the rewards are automatically sent and a new reward period begins.

Example Scenarios

Scenario 1:

– User A buys 20000 $BASED, User B buys 5000 $BASED and User C buys 4000 $BASED.

– For 14 epochs in a row, there is at least 1 buy transaction for $BASED.

– After the 14. epoch, VDC will use VRF and send out the rewards to User A + one of the other users, chosen randomly.

– User A and User C are chosen by the VRF and receive their rewards.

– A new period starts.

Scenario 2:

– User B buys 5000 $BASED

– In the following epoch, there are no $BASED buy transactions.

– VDC triggers and sends out the rewards.

– A new period starts.

Scenario 3:

– User C buys 800 $BASED

– In the following 3 epochs, other people also buy various amounts of $BASED.

– In the 4th epoch, there are no $BASED buys.

– VDC triggers and sends out the rewards.

– A new period starts.

How is the Volume Driver Module beneficial?

The Volume Driver Module is intended to be another rewarding mechanism to $BASED buyers. Normally, the point of buying $BASED is simple, you either want to use it as part of your LP and participate in the protocol and its reward structures or want to speculate on price movement. The Volume Driver Module adds another layer to buying $BASED, which is to participate in fee sharing.

We wanted to implement a fee-sharing mechanism in this way to make the rewards feel bigger, more meaningful, and more exciting. Normally, a streamlined fee-sharing mechanism based on the 4% tax on $BSHARE sales would be simple and understandable, but the rewards wouldn’t be as impactful. By implementing VDC, we have created a model that is inclusive, the rewards from the fee-sharing mechanisms are batched together and sent out to 1 random buyer and to the person who bought the most $BASED. The latter mechanism of the Volume Driver Module ensures that the big buyers are rewarded whilst our smallers investors are equally considered and not left out.