Thugs.Fi Project Review: StreetSwap AMM Launch Brings CRED Token

The Thugs over at Thugs.Fi are taking over the BSC streets with its new automated market maker (AMM) dubbed “StreetSwap.”

By
Goon Trades
on
November 14, 2020
Category:
Project Insight

What is StreetSwap, And Who Are These “Thugs”?

Thugs Finance is working to dethrone the leading AMM’s in the BSC ecosystem using its intuitive tokenomics system and sleek design. Thugs finance aims at going above the typical AMM and is innovating in the Game-Fi and NFT-Fi space. The THUGS token launched Oct. 1, its had one presale round for 467,000, which was valued at 2500 BNB. This BNB has since been locked into liquidity. I will do a quick breakdown below for those of you who are not familiar with the tokenomics of THUG.

THUGs token are burned when users send, sell, add and remove liquidity based on a variable burn rate. When the price of THUGs is lower, the burn rate is higher, and the higher the price, the lower the burn rate.

Following burning, 51% go to the burn address here, and the other 49% goes to the “Thugs.Fi Vault”, coined the protection vault. The Thugs Finance team allocates these THUGs for funding the project, which could be classified but not strictly, as the following: Marketing, LP airdrops, community management, and business relationships.

For those who are interested, the THUGs burn rate is calculated using the following formula.

Here’s how the burn rate is calculated:

Burn rate = 50% / (Current $THUGS price / $0.36760313)

Looking at this data, the key figures that should stick out to you are the initial supply and circulating supply, displaying that THUGs token is deflationary. The THUGs token launched Oct. 1, and there has already been 23% of the total supply burnt. This makes THUGs different from nearly all other AMM tokens; holders don’t need to worry about excess minting, an unlimited total supply in some cases. On top of that, it is also essential to look at the scale of the markets. With a market cap of $2.2 million, there is plenty of market share to gain, considering the leading AMM has a ten times larger market cap.

Thugs Need StreetCRED

On top of their AMM release, “StreetSwap” the Thugs Finance team has rolled out a new staking mechanism for their THUG token. Users can stake their THUGS upon which they receive a new token, CRED.

Upon staking your THUGS you will be rewarded CRED based on the current burn rate at a 1:2 ratio and the 8% THUGs burn.  While 8% may seem steep, you only need to pay that rate when initially staking your THUGS; converting back from CRED to THUGs does not qualify for a burn. From there, you will then be a part of the AMM buy-backs which have been implemented.

To start, Thugs Finances’ AMM “StreetSwap” collects a .4% fee per swap, where .1% goes to the factory MINTS LP (used for AMM buy-backs), and the other .3% is allocated towards liquidity providers (LP). Once in the LP tokens are minted the ThugsCollecter contract then converts the LP tokens into the respective tokens, where they are all sold for BNB. This BNB is then used to buy-back THUGs, which is put into the CRED contract. The more THUGs added into the contract (AKA-THUGs staking pool) increase the CRED value, which are redeemable for an outstanding portion of THUGs.

Ultimately this tokenomics system is ideal for long-term THUGs holders. As already explained, THUGs is a deflationary token that is great for long-term investors. This addition allows users to get exposure to the AMM fees collected by buying back THUG token’s and giving them back to users who stake THUG. Think about it like this: you are rewarded in more deflationary tokens for holding a scarce asset. Not sure about you guys, but why would you not want to earn more of a deflationary and income-generating token?

https://twitter.com/ThugsDAO

THUGS Don’t Rug

Safety has been a considerable concern recently in the BSC ecosystem. There has been a wave of projects that perform all sorts of liquidity scams or “rug-pulls.” I am here to assure you that the Thugs.Fi team acknowledges these risks and has implemented a bug bounty program. The team has opted for a community-based hack-a-thon to provide security to its contracts. The bosses incentivize users to find minor exploits and GUI bugs ($100 reward) and a larger sum for users who find significant security vulnerabilities ($10,000). Overall the team opted for a community event due to current circumstances regarding Pancakeswap having issues with their CertiK audit. 8ball (Thugs.Fi Boss)has personally commented on this issue, stating that he would rather pay the community to audit his project than a company that provides -more or less- a shiny stamp of approval.

 

Overall Thoughts

The implementation of THUGs staking, to ultimately receive more THUG, creates a whole new layer of innovation in the De-FI, precisely the AMM space. Other AMM’s in the BSC ecosystem offer high yields, but users are stuck with a hyper-inflationary governance token, which has a very limited value. The Thugs.Fi team aims at providing long-term investors and liquidity providers sustainability through holding THUGs. Users who opt for THUGs exposure can keep a deflationary asset that generates income from AMM fees. Instead of being paid in a hyper-inflationary token, they are rewarded with more THUGs token using the buy-back system explained above. These tokenomics provide sustainability to the De-FI ecosystem as it is a net deflationary system that allows investors to capitalize on AMM fees.

Realistically one only needs so many AMM’s; better pick the fastest horse in the race before you and all the other AMM’s are left in the dust. The tokenomics model in place provides [relatively] sustainable and secure returns to users, which has not been seen in the BSC ecosystem to date.

Tags:
No items found.
Goon Trades

Greg (GoonTrades) is BSC News' Chief Editor and is also a writer for the team. Currently enrolled as an economics major, he finds himself as a cryptocurrency researcher, writer, and technical trader.