The vaults are generously incentivized using the two schemes as described below at the time of launch (subjected to changes, if required).
The vaults receive a 0.5% bridge fee from the user on every transaction (issue, redeem) as 1BTC. The 0.5% fee is subject to change, but it is used at the launch time.
Example below assumes:
ONE price of $0.34 | BTC price of $43,000. Collateral: 200,000 ONE ($68,000) Allowed Issuing: 1.05 1BTC ($45,333)
Day 1: Ten users bridge BTC to 1BTC at a total value of $20,000.
Day 2: Five of those users redeem BTC at a total value of $10,000.
Day 3: Ten additional users bridge to 1BTC at a total value of $30,000.
Day 4: Eight users redeem BTC at a total value of $35,000.
Day 5: Six users bridge BTC to 1BTC at a total value of $45,000.
Total amount transacted: 2.2 BTC valued at $140,000 Bridge Fees Collected: 0.016 1BTC valued at $700
The vaults are rewarded for the amount of collateral that they put in based on the average staking reward rate. Examples below assume a ONE price of $0.34.
Collateral: 200,000 ONE Staking reward: 18000 annually (@9% APR) or 1500 ONE/month . Dollar amount: $6120 per year or $510 per month.
Collateral: 2,000,000 ONE Staking reward: 180,000 annually (@9% APR) or 15,000 ONE/month. Dollar amount: $61,200 per year or $5100 per month.
Stake APR on collateral depends on length of participation.
Note that, some of the reward details and the bridge protocol parameters are subjected to change. However, everything will be finalized before the vaults participation and bridge launch.