WSB DApp - Utility and Fees explained

Hello WSB’ers!

Many of you have asked ‘what is the long term utility of $WSB tokens?’.

This post is designed to explain the flow of fees and how it all works to benefit the community.

Let’s start by breaking down the product lines:

  1. Exchange Traded Portfolios (ETP’s) - 0.3-0.5% Fees accrued when buying/selling ETP’s.

WSB Core devs are working on a daily basis with the team at Balancer Labs to launch the world’s first wholly-collateralized, self-custodial ETP concept. Auditing has begun and the ETP’s should go live in early August.

Essentially, we have augmented Balancer V2 and with the assistance of their team, created the bespoke features required to:

  • Go live with ETP’s which can scale up/down in basket size (between 1 and 100 assets).
  • Address various flash-loan attack vectors.
  • Implement code that allows for the ETP’s to incorporate a fee mechanism.

Originally, we anticipated that the ETP’s would have a 2% per annum AuM fee (typical of legacy ETF fee structures).

This has proven to be sub-optimal - both in code and commercial reality. Instead, the fees will be volume-based, and vary slightly when people buy and sell the ETP’s or swap the assets held in the pool. The trade-based fee model works out better in terms of the generated revenue and as such, is fairer to users than the original annual AuM fee concept.

This model is applicable to both the Stock and Crypto ETP’s - the only difference being that crypto-ETP’s will be paid in ETP tokens, whereas stock ETP fees are captured in various currencies, which will all be transmuted into BUSD.

WSB token hodlers can then vote to burn, create UBI, allocate to the marketing budget, or do something else with the accumulated WSB. The world is their oyster.

  1. “Synthetic Stock” Trading DApp - 0.5% Fees generated when buying/selling tokenized stocks.

Think of it as a ‘DeFi-native Robinhood’ where you can buy/sell tokenized stonks such as Tesla, Amazon etc

This is a bit of an alpha leak, but…we built a fully functional trading DApp to complement the ETP’s.

We will be using Mirror protocol (as well as BAND and LINK for various on-chain stock pricing) for this DApp and full product and partnership details will be published shortly.

Being a community driven project, we made sure to allow for the fees and their usage to be changed over time by way of community DAO vote.

All percentages highlighted in yellow (as well as their corollary use-cases) can be changed via the voting mechanism.

This means in the future, if we have to be more competitive and reduce fees - this is possible. Alternatively, the fees can be reallocated if there is a better use for them. Naturally, this may be subject to what is technologically feasible at the time and also available to be voted upon as well.

In Summary:

  • WSB DApp has two main products. The first being a tokenized stock interface for Mirror-based assets, and the second being the ETP’s. So far, two ETPs have been conceptualized - The Crypto20 ETP and the Macro Hedge ETP.
  • Both product lines will be live within the next 4 weeks.
  • The fees generated from all product flows bring long-term substantial and highly scalable utility to WSB holders.
  • The fees are in-line with our goal of complete decentralization and a community-led approach (everything can be voted upon).

We are very excited to be near the finish line on product construction and look forward to a very spicy few weeks ahead!

~ WSB DApp team

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The entire ethos of this project is embedded within this message. This team clearly recognizes that the problems we are solving today are not only a cure for preventing future problems, but the solutions allow us to set new goals faster so we can get more problems. Happy to be a member of this community. Thank you!!!

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Team always delivering! A tonne of things coming up it seems, all with actual use cases and not just vaporware.

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BIG news! The idea having our “own Robinhood” community governed trading app is great and could be a game changer!
Will the trading dapp have easy onboarding and funding (eg via credit card)?

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This is a great idea. Right now there doesn’t seem to be much difference between buying stocks via Mirror exchange and WSB. But if we make it very easy for people to purchase stocks with and crypto via card, this would be a game changer!

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We are looking at doing quite a few things to incentivize and reward $WSB holders as we continue to add not only more Mirror assets (as well as working with them to provide liquidity to new assets) but we also have other tokenize stock projects we look to add to make it a one-stop shop for tokenized assets and this also includes cross chains with Polygon as well.

Stay tuned.

We are also very open to suggestions how also to reward WSB holders to use the platform and hold WSB to get special incentives

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How about some form of small trading fee discount if you are holding more than X number of WSB in your wallet? Or a sliding scale discount that increases for holding more than a set of rising WSB thresholds in your wallet?

No idea how easy/difficult that would be to build in practice, but one way to incentivize holding WSB and using the DApp.

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Yes sounds very good, similar to BNB and Binance model.

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That was very much in my thoughts.

It seems I always drift toward a “Binance Model” of some sort…

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@BTCVIX thinking on utility for the token, sure this has been mentioned , but apart from discount on trading fees for holders, I think there could be scope for making specific etps open to holders and holders of certain volumes of token.

I’m thinking almost like an Etoro model where you can buy into an etp developed by someone far cleverer than me. Maybe it has futures built into it, various different assets etc. Point being it’s a specialised etp that I can access as I have invested in x tokens for example.

Certainly possible – I want to explore many more utility aspects of the $WSB token in general – we should really put together like a community town hall where we can all discuss this

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