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.