♾️Treasury Fund
Fund to maintain WST value.
Treasury Fund
Treasury funds are built through "Call Option". The Treasury Fund will be built with several major coins such as BTC, ETH, BSC, and BUSD, and will be staked in a 3rd party pool to increase the size of the Treasury Fund while the service is maintained. All assets of the Treasury Fund are used to maintain the WST value.
The Treasury Fund is stored in several cryptocurrencies, including WST-BUSD LP, while the service is running, and the WST Token Buy-Burn system works when the WST price drops below $1. In the case of a one-time token burn through the Treasury Fund, the token value may be maintained in the short term, but the token value is likely to decline again in the long term. WisteriaSwap has built a system that can continuously burn WST when the price of WST falls below $1 using the Treasury Fund. Several services used a one-time token burning model using the funds collected when the price fell, and a one-time buy-burning system using a deposit fee, but failed to maintain the token value. We believe the reason was because it was unsustainable.
Wisteria Fund will invest in several cryptocurrencies using a certain amount of WisteriaSwap's profits to maintain the value of WST. The proceeds from the investment are used to continuously Buy-Burn WST, and this fund does not disappear, so we can continuously Buy-Burn WST as long as the WisteriaSwap service is maintained.
We tested this fund system by applying it to RobiniaSwap and saw positive results. Robinia Fund continued to buy-burn RBS and burn RBS tokens more than 25% of the total issuance. Through Robinia Fund, the price of RBS tokens has been stable for two months, and RobiniaSwap is still running without any problems. If we had Buy-Burn RBS on a one-time basis without using a fund, RobiniaSwap would not have been able to sustain until now.
We will build the Wisteria Fund once again based on the success story of the RobiniaSwap Fund, and we are confident that it will make a significant contribution to the value of WST.
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