🆙upEMP
$upEMP Token, is a perpetually appreciating asset 100% backed by EMP.
Imagine an asset that provides a great opportunity to earn real yield with no price depreciation, but actually only price appreciation!! All buys increase the price, but all sells do as well. Confusing at first glance, how can sells increase the price? Well, the fundamentals of $upEMP enable this with two very simple core mechanisms, the Mint and Redeem functions.
Token Mechanics - Mint & Redeem
Minting $upEMP can only be done through the dApp with EMP.
All mints charge an 8% mint fee.
Redemption can be considered selling $upEMP in an OTC (Over the Counter) direct exchange between the user and the protocol with no price impact beyond the Redemption Fee. All redemptions charge an 20% redemption fee.
Sacrificing your $upEMP directly into EMP Fusion will result in no fee.
Price Action Explanation
The price of $upEMP is simply $EMP value of the backing treasury divided by circulating supply. An easy way to understand how the price can go up both on sells and buys (redemptions and mints) we can simply think of the treasury always having a net positive gain on each transaction. For a sell, more tokens are burnt than paid out for a net gain on treasury vs supply. For a buy, more $EMP is allocated to the treasury than tokens minted to circulation for a net gain as well. The net gain comes from the fees adding more to the backing treasury compared to the amount minted/paid out.
upEMP Token - Additional Details
The upEMP token is 100% Backed and will always have a backing. There are no algorithmic or inflationary mechanisms, as every token in circulation must be bought (minted). $upEMP tokens will always be redeemable for the price listed, minus the redemption fee.
Both Minting (i.e.Buying) and Redeeming (i.e. Selling) through the Mint and Redeem contracts will cause price appreciation.
There will be no capped supply.
Supply is determined by mint and redemption volume.
Minting increases supply.
Redemption reduces supply.
Redeemed $upEMP tokens are burnt/destroyed and removed from circulation.
Fee Breakdowns
All mints charge an 8% mint fee.
8% Broken down:
-5.2% Collateralized backing of the token
-2.1% Burn
-0.7% Development Fee to UP Finance
Redemptions:
If redeeming directly, there will be a 20% redemption fee
If redeeming by sacrificing into Fusion, there will be 0% redemption fee.
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