Uranium V2 : Volume, fees, pools

Uranium V2 is now less than 24 hours away : on Friday 16th April at 8pm UTC, Uranium V2 will officially be launched.

Starting then, you will be able to buy and sell our new U92 token on our exchange. V1 users will be able to migrate their RADS and sRADS and claim their compensations in U92 and U235, as explained in our previous medium article.

But, Uranium V2 won’t be a simple token rebranding. In this article, we’ll mainly focus on the changes this release will bring to our project.

Tokenomics

As many of you already understand, we are not a simple farm, but a true AMM/DEX, aiming to compete with the biggest players in BSC. Our dividends distribution system has definitely proved its effectiveness, but the crucial moment will be the way we handle the switch of its main source of income.
During the initial phase of V2, the majority of the fees generated will come from the deposit fees, but if we want Uranium and the reward dividends to be sustainable long term, the swap fees must become the main source in the future.

With those concerns in mind, we are using this relaunch as an opportunity to improve some aspects of our protocol :

Swap fees:

Here is the main game changer : we have decided that we will reduce the swap fees from 0.2% to 0.16% on each trade.
Some may think of it as a simple decrease of the dividends in the future, but this adjustment aims to help bring us more external volume by simply being a cheaper place to trade than other DEXes available. Once word gets out that trading fees on Uranium are lower than our competitors, many people who primarily use other DEXes will begin to use Uranium for their trading on BSC. The increase in total daily swap fees from the increase in volume will outweigh the decrease in the fee itself. We only need a 21% increase in trading volume to outweigh the 20% trading fee reduction, and that shouldn’t be hard to achieve.

Initial pool offering :

Still with the idea of bringing more volume to our platform, we decided to overhaul our initial pool offering.
The initial pairs will be the same and the multipliers very close to what we had in V1, but we’ll add some new non-RADS/U92 farms with 0% deposit fees and lower APRs.
The distribution has been thoroughly thought through in order to keep everything balanced, so those of you concerned about 0% deposit fees on farms need not worry — the APRs will be low enough that it won’t create a massive incentive for quick native token farming and dumping, but high enough that it will bring additional liquidity to Uranium to make it a more stable DEX to trade on. These 0% fee farms will be reviewed in the future once Uranium has a lot more liquidity.

Here are the initial pool offerings :

RADS/BUSD x36
RADS/BNB x24
BNB/BUSD x8
BTCB/BNB x4
ETH/BNB x4
USDT/BUSD x4
RADS x8
WBNB x2
BUSD x2
BNB/BUSD (0% deposit fee) x1
USDT/BUSD (0% deposit fee) x0.5

Some may still argue that these 0% deposit fee farms will be detrimental to the Uranium ecosystem as it will mean some of the liquidity added won’t generate the 4% fee anymore for the U235 holders, but we believe that most of the investors who would normally pay the 4% fee will still do so, as they’ll want to receive the higher APR (x8 with the fee, only x1 with no fee). Most liquidity providers know that long term, they will receive a greater ROI with the 4% fee and the x8 reward multiplier, but the 0% deposit fee pools will attract other types of liquidity providers that Uranium might otherwise not gain, and the more liquidity we have, the more people will trade here — thus generating more swap fees. This decision has been made for the long term goal of competing with and potentially overtaking the top DEXes on BSC, and will play a huge part of the sustainability of the platform in the future.

Emission rate :

In addition to those changes, the initial emission rate will be reset to 1 U92/block. It will of course produce a larger supply, but will guarantee that Uranium offers more interesting APRs to the new users. However the automatic reduction will evolve, as we deemed it a bit too aggressive. For V1 we were at an automatic reduction of 3% every 12 hours (~14400 blocks) and we will move to 3% every 24 hours (~28800 blocks).
We’ve also made a major change to the way we’ll handle the minimum emission rate : in V2, we will have the possibility to reduce it (but not increase it) via the timelock, which will give us more flexibility in the future.
The V2 minimum emission rate will be set to 0.5 U92/block, and when we approach this floor, we’ll evaluate the situation and adjust it accordingly.

U235 swap to U92 :

We decided to increase the minimum staking time of U235 from 24h in V1 to 72h in V2. The maximum penalty will still be of 30%, and the swap ratio will be progressive, and will proportionally increase with the average staking time. In short :
- the U235 to U92 swap just after the harvest will be at a 1:0.7 ratio
- 1:0.8 after 24h
- 1:0.9 after 48h
- 1:1 after 72h+

Money Pot management and distribution

Once all the contracts are deployed, all of it will be sent to the new MoneyPot contract, as a part of the Bonus Money Pot. As always, TxIDs will be communicated via the announcement Telegram channel.

We have decided on the following plan for its use :
- The first Money Pot will start releasing dividend rewards at 8am UTC on Sunday the 18th (12 hours after the farming rewards begin).
- The 1.2 Million in BUSD in the Bonus Money Pot will be used to top up each daily money pot from launch to $500K if it is below that amount from the despoit and trade fees, until all the Bonus Money Pot funds are used.
- This means that if the first 6 Money Pots receive an average of $300K from the deposit and swap fees, the funds from the Bonus Money Pot will be used to top each pot up by an average of $200K until it’s all used.
- If after 7 days, the Bonus Money Pot still has some funds left in it, the remainder will all be put into the Money Pot on Sunday the 25th.

Hosting Migration