Looper Finance Docs


What sets Looper Finance apart from traditional DeFi and other rebase tokens?

Looper Finance is the first ever gamified rebase token project. We aim to disrupt traditional DeFi with a combination of an innovative Loop Concept, GameFi and Tax System to reward investors.
Instead of waiting for years to get your long-term investments back, you can get insane profits short-term. Why not invest long-term? Because this introduces multiple risks of external factors that will fluctuate the value of the tokens. Many long-term DeFi projects have been absolutely destroyed due to Bitcoin volatility and lack of utility.
We created a gamified rebase token with variable Daily Return that only depends on its own protocol, concepts and investors. Now anyone can be a millionaire.

Is LOOP TOken a stable coin?

No, LOOP Token is not a stablecoin. Rather, LOOP Token aspires to become a hyper-deflationary gamified rebase token, with an effort to suck as much governance as possible into its treasury to reward token holders.

How does it work?

At a high level, Looper Finance consists of its protocol managed treasury, protocol owned liquidity (POL), taxation mechanism, loop concept and gamified rewards that are designed to control reward distribution.
Buys and Sales generate profit for the protocol, and the treasury uses the profits to support LOOP Token price and reward Loopers.

Why is the market price of LOOP Token so volatile?

It is extremely important to understand how early in development the Looper Finance protocol is. A large amount of discussion has centered around the current price and expected a stable value moving forward. The reality is that these characteristics are not yet determined. The network is currently tuned for expansion of LOOP Token supply, which when paired with the staking, taxation and yield mechanics of Sphere Finance, result in a fair amount of volatility.
LOOP Token could trade at a very high price because the market is ready to pay a hefty premium to capture a percentage of the current market capitalization. However, the price of LOOP Token could also drop to a large degree if the market sentiment turns bearish. We would expect significant price volatility during our growth phase so please do your own research whether this project suits your goals.

What is the point of buying it now when LOOP Token trades with a taxation and I lose a share of my tokens right off the bat?

When you buy LOOP Tokens, you capture a percentage of the supply (market cap) that keeps growing thanks to our burning mechanism. Furthermore, if, for example, 2% of the market capitalization were burned thanks to our burning mechanism, your share would increase by 2%. Other protocols allow bonds that passively dilute your position and pass it on to bondholders (thereby reducing your market share). Thanks to our tax system, we get our income from taxes, not bonds, and when someone buys or sells, you as an investor benefit. There is no passive dilution to mint new tokens through binding. In addition, it means that if you buy LOOP Tokens with a low market cap, you get a larger percentage of the market cap since there are fewer tokens in circulation and the price of the tokens is cheaper too! And that will grow exponentially. On top of that, thanks to the rebasing, you would earn the tokens back that you would've 'lost' anyway!

What is a Rebase?

Rebasing is a mechanism by which your eBalance increases automatically. eBalance can be claimed for LOOP Tokens at a 1:1 ratio. Rebase occurs every 2 hours (12 times daily). At every rebase, you will automatically get eBalance based on your Rebase Rate. Rebase Rate depends on your Daily Return.
At every Rebase:
For example, if you have a Daily Return of 20%:
  • At every Rebase, you will receive eBalance = TotalBalance*0.015309470499731

What is Daily Return?

Daily Return is the percentage by which your eBalance increases daily.

How is the APY calculated?

The APY is calculated from the Daily Return using the following equation:
APY=(1+DailyReturn/100)365APY = ( 1 + Daily Return/ 100)^{365}
It is raised to the power of 365 because your Daily Return are assumed to be compounded daily. While rebase does occur at every 2 hours, you will only receive returns up to your Daily Return due to the Rebase Rate. Thus, we can calculate APY by assuming Daily Return are compounded daily.
Note that the Daily Return and APY for each Looper is different.

Why does the price of LOOP Tokens become irrelevant even in short-term?

As illustrated above, your LOOP balance will grow exponentially over time thanks to the power of compounding. Let's say you buy 100 LOOP Tokens now for $1 each and the market decides that in a few days time, the value of LOOP Tokens drops to $0.50 each. Assuming Daily Return of 20%, your balance would grow to about 619.17 LOOP Tokens by 10 days, which is worth around $309.59. More than doubling your initial investment even when the token value dropped. Of course this is only in an ideal scenario and you should always take profits. This may mean you won't get the immense compounding effects, but please be safe!

How does the protocol manage to maintain the insane APY?

We have a variable Rebase Rate, or Daily Return of up to 20%. Please refer to the equation above to learn how APY is calculated from the rebase rate.
This is achievable if the protocol can bring in at least the equivalent USDT amount for these LOOP Tokens daily from taxation and various other yield generating revenues. If the protocol fails to achieve this, the price stability of LOOP Tokens cannot be guaranteed.

How do I track my rebase rewards?

You can track your rebase rewards by calculating the increase in your eBalance.
  1. 1.
    Record down the amount of the x Rebased that has had happened in-game. Let's call this the Start Index.
  2. 2.
    After staking for some time, if you want to determine by how much your balance has increased, check in-game and see how often the x Rebased occured. We will call this the End Index.
  3. 3.
    By subtracting the End Index by Start Index and use the power of the rebase rate, you would get the ratio by which your LOOP Token balance has increased.
Increase=(endIndexstartIndex)RebaseRateIncrease = (endIndex - startIndex)^{RebaseRate}

Is Looper Finance Audited?

Not yet. We are planning on getting audited post-launch!


How do you ensure that the protocol won't see price manipulation at launch?

We're working on making price manipulation as costly of an endeavor as possible by implementing additional taxes, as voted, by the community. So far, we've made the possibility of an additional sell tax at launch & dynamic taxes.

How do the additional taxes at launch work?

The sell tax is generically capped at 20% with a ceiling of 25%. This means that it cannot be raised by more than 5% for the community, and it can only be done manually with the approval of the community. However, considering the needs of the protocol, the tax may be temporarily increased for a few days after launch to make use of potential early exits. based on community feedback. The sell taxes may be raised by 10% (20% -> 30%) and periodically decrease by 5% every day until it's back to 20%. This means that for the next few days after launch, the protocol will receive a much bigger share in the LP and the Treasury.

Are we a Titano Finance Fork?

No. While we do take certain elements inspired by them, we are not affiliated nor a direct copy of Titano Finance. How Looper Finance works is vastly different from Titano Finance.

Are we a Sphere Finance Fork?

No. While we do take certain elements inspired by them, we are not affiliated nor a direct copy of Sphere Finance. The main similarity between Sphere Finance and Looper Finance is the Dynamic Tax. However, our tokenomics, concepts and methods are vastly different from Sphere Finance.