Ecoscore
Last updated
Last updated
Whitehole Finance has a special system called Ecoscore that measures how much each user contributes to the ecosystem overall. It is fairly meant to reward users who have high protocol loyalty.
Ecoscore is divided into 5 zones (Red, Orange, Yellow, Light Green, and Green), with higher zones offering exponentially more benefits. The opposite situation (low zone) results in low profit.
The benefit of Ecoscore is that the protocol's limited resources are allocated in the order of holders with the highest loyalties, keeping overall inflation constant while reducing the quantity of GRV distributed to the market. Additionally, even if the GRV amount is small or the stake is low, participation in the system is not impossible because the EcoScore relates to an individual's degree of achievement.
For example, in traditional platforms (such as Curve), if a user is not an institution or affiliated with the foundation, it's not possible to increase one's own interest rate by participating in Curve-W, through gauge voting. However, in Whitehole Finance, as long as the balance of the individual's veGRV amount and claimed GRV amount is maintained, high Zone maintenance is possible and therefore, it's possible to reduce taxes and increase rewards.
The claim ratio of reward GRV to the amount of veGRV serves as the benchmark for evaluating a user's Eco Zone. The EcoGauge as the Deposit Ratio is how the ratio is displayed (DR).
Claimed" refers to monetized interest from GRV rewards. By doing this, the current gauge % is determined, and my zone is immediately changed to one that corresponds to that ratio. However, for each additional claim, the claimed amount is first combined with the existing claimable quantity before being calculated.
Minimum Lock up period
It is the minimum required to keep the Green and Light Green benefits, serving as the GRV lock-up period. For instance, even if you have a high DR and are a Green user, your zone will switch to Light Green if the GRV lock-up duration is shorter than 3 months (12 weeks). You need to consistently increase the lock-up duration to maintain a high zone (Lock Extension).
Claim Tax
It was used to increase the price of GRV in order to maintain the ecosystem in a positive cycle. Higher-zoned users are free of paying taxes. The tax is levied on interest claims, and the vast majority of the GRV is burned.
It is imposed in accordance with the user's zone if the market price of GRV decreases by a specific % or more as compared to the average standard price for the previous 7 days in order to avoid a dramatic decline in GRV.
Maximum boost multiplier 3.0x
A 50% tax exemption for PPTs
Up to 40% of claim tax exemption
Up to 1.0% of withdrawal fees are waived
Weekly distribution of rebates based on protocol income for veGRV stakeholders.
GRV = 1USDT
USDT Pool APR 10%
James doesn't have veGRV right now, thus Red Zone uses the default boost ratio of 1.0x.
James is now farming in Whitehole for 1000 USDT.
Taxes include the claimed tax and the PPT tax, which are both claim taxes used to prevent price falls.
James earned 100 GRV from his farming interest one year later (Unclaimed Rewards).
James' actions will determine how things turn out.
James instantly claims the 100 GRV in the cumulative reward. James is subject to claim tax because his EcoScore is now in the Red Zone. You will receive 60 USDT, which is the equivalent of the 40 USDT that an individual earned, because they are -40%.
James won't leave the Red Zone when farming constantly after that since he has no veGRV holding amount.
James avoids the tax and wants to claim 100 GRV in earned rewards. This is due to James being liable for tax claims while he is now in the Red Zone. As a result, James bought GRV separately to expand the Zone and locked it up using the Vault.
According to the calculation formula, James' veGRV would be 336.53 veGRV if he bought 3500 GRV and locked it up for 10 weeks. (The amount rises the longer you keep it locked.)
The EcoScore method predicts that James' DR will be 336.53veGRV - 100GRV / 336.53veGRV * 100 = 70.28%. In line with this, the Light Green Zone will be able to claim the entire 100 GRV as no interest charge tax would be applied.
When farming once more, James farms with a high boost APR that correlates to the Light Green Zone while also receiving weekly rebates from the protocol revenue.
James doesn't want to purchase back GRV and lock it up, but he also doesn't want to pay taxes. In this situation, it is possible to claim before unclaimed accrued reward interest GRV is instantly locked away.
There are two different cases for the function's application examples.
Users who have already locked up
Users whose existing lockup has expired or does not exist
The reward GRV will be added in accordance with the veGRV calculation formula throughout the remaining lock-up duration of the current lock-up if a user with existing lock-up locks up the reward GRV right away (Example 1). combined with new veGRV
A new lockup period can be created for users who have either never had a lockup before (Example 2) a new lockup period can be set.
In order to promote this activity, a tax is first applied on such a "compound," but it is applied with a discount at the time of the compound. For instance, if a 20% tax should be applied initially, compounding might reduce it to 0%.
Both instances share the following process
The veGRV calculation method effectively counts the user's unclaimed GRV without tax.
With a significantly increased veGRV amount, the user's Zone is advantageously acquired in this process. The EcoZone will change in ranking if the zone is rebalanced in an upward direction, allowing the current -20% tax to go to 0%.
The user's overall tax is then determined (PPT Tax + Claim Tax). Additionally, the "total tax" is once more discounted in the user's favor.
The user's total tax could become 0% with this discount.
According to the veGRV calculation formula, the final tax is locked up in the user's Vault after it has been charged.
The following formula is used to determine the final tax
Returning to our previous example, let's describe James' situation.
Assuming James is now a 100veGRV holder with one year till unlocking, that his zone is Orange, and that the overall tax imposed on James is -20%, let's calculate the final tax.
As a result, James' current tax deduction of 20% is made, enabling him to lock up with the original amount of 100 GRV. The veGRV acquired by the compound using the veGRV calculation formula is ultimately determined as 50veGRV since James' current lock-up time is 1 year.
James was an Orange Zone user, but he was able to continue farming with an increased APR and rebates by compounding without paying taxes.
As a result, all courses are designed to provide the compounding user with several benefits and will be calculated and applied automatically.
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