Testudo et Lepus
Of the Hare, and the Tortoise.
Note: Testudo more formally refers to a roman military formation, and not to the creatures belonging to the testudine family. The phrasing is entirely intentional, as the testudo formation was in fact both a defensive and offensive posture, which this could be.
TL;DR:
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enable dynamically adjusting fees so that only fees are imposed market dumps, rugpulls, bulge bracket transactions, etc.
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vast majority of users will not pay fees, as planned with V2
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this sets yEarn apart: fees are a race to the bottom, what then?
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short sellers have an additional price imposed upon them
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this current implementation redistributes feeās from transfers to holders
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contracts deployed on rinkeby and undergoing testing
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full whitepaper here: GitHub - sambacha/evo-whitepaper: EVO Protocol Whitepaper
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no need for ātokenā, just implement the contract library (evo-* prefix can be whatever, eg.g. āyy-*ā
Abstract
Utilize āFeesā as a method of disincentivizing short positions and dumps by dynamically changing āfeeā rate,
where the fee rate is zero for those transfers below the trailing transfer average rate.
This means that transferās exceeding the combined average transfer rate would have a fee imposed.
The vast majority of users would not incur this fee or could simply wait between āepochsā/ātime periodsā
to withdraw *feeless.
Potential Implementation
as a component either to high risk assets (to enable price protection against dumping)
as a module for vaults in general (this would require more extensive testing)
as an optional component with user opt-in
as a module for āyUSDā (or some variation, e.g. yyUSD) so that additional stablecoins (i.e. yet to be proven) may be included
Introduction
[You canāt use āmacro parameter character #ā in math mode so I just took screenshots of the LaTeX 
]
We propose a crypto-derived functional asset in which controllable volumetric functions are embedded
within the operational utility of the asset. As a result this function exhibits desirable properties
as a unit of account for its underlying asset.
In essence by utilizing the acceleration and deceleration (i.e. velocity) that the speed of the ERC20
token transfers (e.g. average transaction rate/mean transaction rate) can help to counter-balance
and reduce the market price volatility of the faster base currency ($ETH). Our focus is on
purely-virtual crypto currencies, which are based on computational assets e.g. as BTC, which is
based on āminingā, or ETH, which is based on computational āGASā.
By utilizing small volume movements and disincentivizing the larger ones without compensation to
holders every exceeding unusual trade of the token is tracked by the smart contract and higher
āinterestā fees are applied (re: withdraw, or āconsumptionā).
Transference of funds below daily volume threshold does not impose any interest fee.
When the threshold has been exceeded some percentage of tokens gets burned, for the transfer, for
deposit or for withdraw of the base instrument (ETH).
Thresholds are tracked individually per address as the average rate and have a function by which
they operate on.
āevo-ā tokens are minted and burned on-demand by deposit and withdraw operations directly via
the contract.
Think of āevo-ā as a prefix/marker: much like āaDaiā or ācDaiā, and of course, āyDaiā
Initiated Protocol Operations
- Deposit
- Withdraw
- Transfer
These operations contribute to the transfer rates. Transfer rates are tracked both in
aggregate and individually (i.e. per address). The period of time for tracking is the last
25 days
EVO Protocol is determined both in aggregate (dynamically) and individually for each address
based on transactional (i.e. volumetric transactional information) stored and updated through the
smart contract during the previous transactions.
All three operations such as deposit, withdraw and transfer can equally contribute to the transfer
rates that are tracked totally and individually(as per holder) by the smart contract for the period
of the last 25 days.The token price is determined dynamically(and individually for each holder)
based on the information stored or updated in the smart contract during previous transactions:
{equation.EVO Protocol}
The above equation will compute the price for a holder $$h$$ to purchase a certain amount of EVO
tokens in exchange for a base deposit in ETH/WETH at the given discrete time - $$t +1$$ , where
$$Dt$$ stands for the deposit of ETH in the smart contract at previous time - point and $$St$$
stands for the total supply of EVO tokens so far.
The first component with the token - base ratio $$Dt/St$$ under the square root is the indicative
price and does not depend on the purchase/transferred amount, $a$.
Ergo, the component $$I_{t+1}^{\prime}(h, a)$$ is called the discounted interest rate and it can
grow proportionally to a within a range of $$[0, 0.24]$$ of $$a$$.
Higher interest payouts can slow down, deaccelerate, the price movement. Interest rate
determines how fast, or accleration, such price can change depending on the market demand &
supply pressure for EVO-based tokens. Interest[#] is computed individually for each EVO holder.
Note that all interest payments are contributed to the same common deposit Dt on the smart
contract, which is supporting the indicative price. This means that interest is shared by all
holders that choose not to trade their tokens at the moment.
An ERC20 smart contract will contain the information about the balance of every address,
Address Information (i.e. wallets)
$$B(h) s.t. Bt + 1(h, a): = Bt(h) + a$$.
In addition to the individual balances, EVO Protocol contract keeps track about how much each holder
has transferred in the last epoch (i.e. 25days)
Total average transfer rate for an address
$$avg(Rt + 1(h, a)): = avg(Rt(h)) + a$$
Total average daily transfer rate for all holders
$$avg(RĀÆ t + 1(h, a)): = avg(RĀÆt(h)) + a$$.
Calculations
More formally calculation of the individual interest rate as well as the applied ownership discount
can be described in following steps:
Therefore it can be expected that the demand for EVO Protocol based tokens like EVO Protocol will be
able to represent the demand for the value storage, whereas EVO Protocol represents the value of
storage as a derivative function of the underlying asset, Ethereum (i.e. gwei, or as a fixed unit of
account for contracting)
.
