☀️Hyper-Sustainability

Daylight Price to Tax Ratio - DeFi's most innovative appreciating sustainability measure.

The $DAYL token smart contract is designed for longevity and security, with multiple checks and prerequisites added to the code to ensure that the calculated floor price of $DAYL does not fall in relation to the underlying asset.

Daylight utilizes DeFi's most innovative combination of sustainability mechanisms by utilizing fractional liquidity pools and collateralized assets to guarantee an ever-appreciating floor price.

This algorithm distributes the tax on purchases and sales in order to shift the ratio between the backing asset and the token's total supply more in favor of the backing asset. Regardless of the type of transaction, our algorithm maintains a consistent increase in token value to the backing asset. As illustrated in the detailed explanation below, buy, sell, and transfer transactions have varying effects on the token's rising floor value.

Token Sales

When tokens are sold, they are burned, reducing the total supply. The amount of underlying assets to redeem is taxed, inflating the floor price of each token relative to its redeemable value. Sells reduce both total supply and asset supply, allowing for a permanent increase in floor price.

When tokens are sold back to the liquidity pool in this case, they are partially burnt and removed from the total supply. A fee is also applied to sales; instead of redeeming 100% of the expected value, the seller would receive:

nAssets - (nAssets * tax)

Because the entire supply was eliminated, but the number of assets returned was taxed, the ratio shifts even more in favor of the asset in the contract, increasing its residual value. The remainder of the taxes contribute towards reward distribution for our passive income mechanic, as well as the floor price, permanently increasing the underlying value of the token forever.

Token Transfers

When a token is transferred, a percentage-based fee is deducted from the transfer amount, reducing the total supply of the token and inflating its floor price permanently.

When a transfer is executed, the recipient receives:

nTokens - (nTokens * tax)

Token Buys

Token buys are taxed, and contribute towards permanently raising the floor price. On each purchase, a percentage of the bought tokens are permanently burnt, causing a market price increase based on the principle of a token purchase, but also deflating the total supply simultaneously. Executing a purchase transaction finality results in the liquidity pools causing a deficit in Daylight tokens, resulting in a market price increase, as well as a permanent floor price increase.

When Daylight Tokens are bought, tokens are removed from the total supply based on the number of assets received as collateral. Because of the tax, the total supply of tokens decreases at a slightly lower rate than the current value, allowing for price appreciation. Rather than receiving 100% of the expected value in tokens, the buyer would receive:

nTokens - (nTokens * tax)

The value equivalent of the swap asset is exchanged for the value equivalent of the $BNB/$BUSD or any other token used for purchase. After that, the backing asset derived from taxes is routed to the contract pool. In this scenario, if the asset and $DAYL quantities were both equal in valuation prior to this transaction, the Daylight price-to-tax ratio would cause a shift in favor of the backing asset, causing the token's floor price to permanently rise.