Hey
@everyone!
Buyback BOO Explanation
I decided to do a follow up announcement to explain how xBOO and the new buyback single stake pool works.
The new buyback single stake pool is an entirely new single stake pool that will co-exist with the existing IFO single stake pool until that one runs out.
When you deposit BOO in the buyback BOO pool you get xBOO in return as proof of your deposit. xBOO is itself an ERC20 token. The amount of xBOO you get back is based on the amount of BOO already in the pool and the current total supply of xBOO. This ratio will be displayed on the pool and starts at 1 xBOO = 1 BOO, it will continuously go up over time.
Example:
User A is the first to deposit in the buyback pool, they deposit 10 BOO and receive 10 xBOO as the initial ratio is 1:1
Next, trade fees are used to buyback BOO and sent to the xBOO pool, now there is 20 BOO. Since there are 20 BOO in the contract and 10 xBOO is the total supply, the ratio is now 1 xBOO : 2 BOO and user A can redeem his/her 10 xBOO for the 20 BOO at any time, based on that ratio. But let’s say they don’t do that.
Now, User B deposits 10 BOO to the pool and since the ratio is now 1 : 2, they get half of their deposit as xBOO, which would be 5 xBOO. Now the total pool is 30 BOO and total supply of xBOO is 15 (maintaining the ratio).
The ratio only changes as Fees are used to buyback BOO which is then sent to the pool and split equally among all xBOO holders, because each xBOO becomes worth more BOO (the share of BOO went up).