💰$IBET Real Yield

Reminder: $sIBET receives 35% of all fees and can be traded for $IBET. In contrast, $bIBET can only be created by permanently burning $IBET from the circulating supply and, as a result, receives 50% of all fees. The other 15% is distributed to Insanity Labs.

Trading Fees: 0.3%

  • $IBET proportion is burned to $bIBET.

  • $ETH proportion is distributed to stakers

ILP Deposit / Withdrawal Fees: 0.1% - 1%

  • 85 of these fees given to $IBET derivatives and 15% to Insanity Labs

Winners Fees: 0.1% - 1%

  • 50% of these fees provided to $IBET derivative holders.

Trading Fees

One way in which $IBET staking yield is generated is through the internal swap mechanism, similar to GMX. The trading fees generated by the pool are set at a standard 0.3% model.

$IBET that is paid out in this manner is permanently burned from the circulating supply and distributed to $IBET derivative holders, this means they are continuously earning from Insanity Bets.

ILP Fees

Additionally, there are deposit and withdrawal fees associated with the $ILP, ranging from 0.1% to 1%. When a user mints $ILP with the offered currencies or redeems $ILP to their underlying cryptocurrency, these fees are charged, and 100% of the fees collected and distributed accordingly.

Winner Fees

Every time a bettor wins, they pay a small fee to help maintain a healthy protocol when handling fees (Chainlink VRF) and more. 50% of this fee goes to stakers. In the future, it may be redirected to ILP or Insanity Labs treasury.

Example Scenario for $IBET Derivatives Yield:

Using the same scenario as $ILP yield but with the inclusion of trading volume and withdrawal and deposit volume for $ILP.

Targeting: 20% yield

Trading Fees:

  • IBET Trading Volume: $2.5m per day

    • 0.15% in $ETH per day = $3750

    • 0.15% in $bIBET per day = $N/A

    • Annualized = $1,368,750

ILP Fees:

  • $100,000,000 deposit into $ILP

  • $85,000,000 withdrawals into $ILP

  • $185,000,000 x deposit/withdrawal fee of 0.25% average

    • Annual: $462,500

Winner Fees:

  • 50% of the winning fees. Assuming winning turnover of $100,000,000 @ 1% fee = $1,000,000

    • 50% of the fees generated = $500,000

Total fees collected: $2,331,250 paid out in ETH / USDT, as well as $bIBET

  • This would mean with $10,000,000 $IBET staked, a 23.3125% yield would be generated. 3.3125% over the target yield, and therefore no need for $esIBET emissions.

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