Flywheel (POL)

One of the most important and unique features of WaxFusion is our innovative flywheel mechanism. The key factor in this is our Protocol Owned Liquidity (referred to as POL throughout this documentation).

At the launch of WaxFusion, 100,000 WAX tokens will be deposited into our POL contract. These tokens can never be removed from the contract.

Similar to funds deposited by users, these POL funds will be used for CPU rentals and staking/voting to generate rewards. The key difference being that POL funds can be rented for long term (theoretically forever), since these funds do not need to be available for redemption by sWAX holders.

This is in contrast to funds deposited by users, which can only be rented for a maximum of 18 days since they need to be cycled back into the dapp contract in order to allow redemptions, and maintain the lsWAX:WAX peg on the open market.

Revenue generated by POL is treated exactly the same as revenue generated by WAX deposited by users - 85% of it goes to users, the rest is split up between compounding POL, and contributing to the overall WAX ecosystem via LP incentives, etc.

This means that when you deposit funds into WaxFusion, you don't just earn voting rewards on your own deposit. You earn from the following sources as well:

• CPU rental fees from your own staked WAX

• Voting rewards from WaxFusion's POL

• CPU rental fees from WaxFusion's POL

• Fees generated from instant redeems

• Trading fees collected from protocol owned WAX/lsWAX liquidity on DEXs

• Any other current/future revenue sources built into WaxFusion

Even with the service fee built into the platform, rewards are projected to be higher than the standard 8% that would be earned by simply staking the WAX yourself.

And since POL compounds every time new rewards are generated, growth of WaxFusion theoretically has no ceiling. Or in more accurate terms, the floor on WaxFusion's TVL should increase on a daily basis due to the fact that as our own stake increases, we will keep generating more and more WAX for sWAX/lsWAX holders over time.