Tokenomics
In this document, we’re going to be diving into the tokenomics of the AQTIS token, the engine that fuels our quant tech.
We’ll go into detail about what the token is, what it is for, and how it integrates into the wider AQTIS ecosystem.
What is the AQTIS Token?
The AQTIS token is an ERC-20 utility token built on Ethereum with a maximum supply of 3,000,000,000 tokens.
The token generation event took place in April 2023, with 67.5% made available. Of this amount, 2.5% was placed into the liquidity pool.
The token release schedule, as you can see above is split into three distinct phases:
Public launch 65% - the tokens available on the market for anyone to acquire.
LST Liquidity Rewards 25% - these are tokens used to reward LST holders. These will not be released until 12 months after the LSTs have launched.
Protocol Liquidity 10% - we have reserved 10% of the total token supply to facilitate market making, liquidity bonding, and ensuring proper liquidity provider incentivization. It also ensures anyone can exit their position as and when they need to.
Why does AQTIS use the Oasis blockchain as part of its tech stack?
As part of the Private Yield Function, we use the Oasis Privacy Layer (OPL), an industry-leading EVM-compatible Smart Privacy solution. Its architecture allows AQTIS to run on Ethereum, and pay gas fees in Ethereum, but take advantage of the privacy features on Oasis.
It has a unique feature that allows us to customize the type of privacy we think investors need, and maintains a class-leading cross-chain privacy feature that allows us to keep transactions secure.
What is the AQTIS token for and what does it do?
The AQTIS token is a utility token designed to power distinct parts of the AQTIS ecosystem. We list some of these below. There are a number of other use cases we are currently exploring, which we will release documentation for at a later date.
AQTIS is used to power our Quant Tech
As part of the quant tech that powers AQTIS, we have a custom-built database that monitors markets. Inside this database are thousands of signals that provide insight into how the crypto markets are performing.
Our quant tech queries this database to help create the best strategies that capitalize on market trends. To query the database requires AQTIS tokens, creating a perpetual need for AQTIS inside the ecosystem.
At the time of writing, the AQTIS database generates 1,500 signals daily, with each one requiring 300 AQTIS tokens (at current price, this may change depending on token value). Zooming out, this will create a baseline demand for the AQTIS utility token irrespective of market forces. We estimate this system alone to demand 5.47% of tokens on a yearly basis - not including buybacks or any other token demands.
These database queries will go live following the launch of our LSTs, and will be constantly monitored to ensure the AQTIS ecosystem remains balanced.
When launched, a total of 2.5% of AQTIS tokens will be reserved for fueling our quant tech. This pool will be replenished with token buybacks from the quant tech performance, which are explained below.
AQTIS fuels LSTs
If there is $100 million total value locked (TVL), at an average of 2.5-5% in AQTIS tokens, there would be 2.5-5 million AQTIS tokens available.
If however, the TVL is $30 million, 25% of that number would result in 7.5 million AQTIS tokens. We wouldn't need all tokens to be vested, creating a more dynamic system that responds to market conditions.
It’s worth noting that this does depend on the performance of the LSTs. For example:
As mentioned above, 25% of the total token supply has been held in reserve for this purpose, and vests for 12 months after the LSTs launch.
The three LSTs we have created at launch will, with time, generate liquidity for holders, which will be delivered, in part, in AQTIS tokens.
Performance-based Buybacks
Once the AQTIS ecosystem is up and running, our goal is to reinvest the vast majority of the yield generated into buying back tokens, to help maintain a healthy ecosystem.
The goal is to use 50% of the quant tech returns to buy back tokens AFTER we have satisfied our LP management and backing of the ELIF to 40% of TVL.
We are aiming to direct 12.5% of the yield generated from our quant tech to buybacks.
The 12.5% is a goal, or estimate, for the percentage of the total returns generated from the quant tech that we’re aiming to direct to the buybacks.
If we take 12.5%, the annualized effective performance would be at 40% of the TVL (fe: 100M TVL -> Quant Tech generates 40M in returns).
The calculation looks like this:(effective performance % - average yield %) * 50% = percentage of total quant tech returns directed to buybacks.
If the average yield to be distributed to LST holders is at 15% and we use 50% of the returns after covering yield/LP management and backing up the ELIF, the calculation would look like this:
(40% - 15%) * 50% = 12.5%
The calculation that was used as an example in the docs, used 30% effective performance, bringing the buybacks down to 8.75%.
AQTIS opens the door to next-generation market intelligence
AQTIS has been created by industry veterans who have built their own trading models and algorithms using quantitative technology.
It’s these very models that help drive the AQTIS ecosystem. But we believe the database we have built should be available to our community. This is why the AQTIS roadmap has a subscription model that will give our community access to valuable insights and market intelligence.
To access these features, subscriptions will be made available for the community and payments are to be made in AQTIS tokens.
If however, users prefer to make payments in alternative currencies such as USD, ETH, or other assets, our backend infrastructure effortlessly converts these into AQTIS tokens.
The future
The AQTIS utility token is at the heart of the ecosystem we are building. But there is so much more we have planned. We are looking to create an entirely new DeFi ecosystem, what we call AIDeFi, that is at the vanguard of web3 and artificial intelligence capabilities.
Conclusion
The AQTIS utility token is the driving force for the AQTIS ecosystem. We have created a number of ways the token will be utilized to ensure a vibrant, and healthy ecosystem for everyone.
But as part of the AQTIS mission, we never stop innovating.
Have questions? Hop into our Discord.
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