Step Finance
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Using Step Finance
The STEP Token
Integrations
Partnerships
STEP Tokenomics v2.0
The mechanics behind the STEP token
Overview
Step Finance is a transaction aggregation and portfolio management platform enabling new users and DeFi veterans alike to transact, monitor and identify opportunities across the entire Solana ecosystem in one easy to use location. Step aims to be the page which DeFi users have open all day with all the functions and information they need to make informed decisions.
Step also enables people to interact directly with their favourite protocols from within the dashboard which can include claiming farming rewards, compounding yield, entering/exiting pools, executing swaps and automated strategies. Many of these value added services are done for a fee which is collected and used to buyback and distribute tokens to STEP stakers. Today we will discuss the tokenomics behind STEP token.
Principles:
- Value accrual to the STEP token is key to entire platform.
- No new LP emissions.
- Emissions are a subsidy and a form of customer acquisition, new emissions should only ever happen to users who have already paid a fee to the protocol.
- xSTEP staking pool gets its yield from protocol fees only.
Token Metrics
Max Supply: 630 106 792 STEP
Emission Period: Ended
Airdrops: 5 000 000 STEP
Team: 125 000 000 STEP
Team Lockup: Lockup over 2 years vested in 25% increments every 6 months.
Treasury: 57 495 135 STEP
Presale Investors: 117 800 000 STEP
Presale Lockup: 2 years vesting. 50% available after 1 year, 50% available year 2.
Community & Ecosystem: 232 398 073 STEP
Already Emitted #STEP (2021 LP farming): 92,507,486 STEP
Token Type: SPL (Solana Native)
Token Burn
On the 5th of October Step decided to burn a significant amount of supply (Approx 37%) as follows:
- 50% of Team tokens yet to be emitted burned (75 000 000 STEP)
- 50% of Community Pool Emissions burned (232 398 073 STEP)
- 50% of Treasury burned (57 495 135) STEP
- 50% of Airdrop Supply burned (5 000 000 STEP)
- The total burned amount approximately 369 893 208 STEP
- This will bring Total Supply down to: 630 106 792 STEP
The burn ensures that given the current vesting periods for founder tokens and the slow issuance of new supply doesn't result in a situation where a small number of people end up with an overwhelming amount of supply, this would negatively impact the investability of STEP and therefore this burn better aligns with the tokenholders.
Burn Transaction:
​Here for the Community, Treasury and Airdrop pools. Vested founder tokens for vesting periods 2,3 and 4 arent minted yet so there is no burn transaction.
More information is available in our update blog here (https://stepfinance.medium.com/step-update-4-c3bc4d2a263a)
Staking (xSTEP):
Anyone can Stake their STEP token and in return they will get an xSTEP token. All fees which the Step protocol earns go to a treasury wallet which is used to market buy STEP and send to the xSTEP staking contract which distributes this STEP to stakers. More information on this is available here.
xSTEP Treasury Fee Address
​Here is a link to our fee address. PLEASE NOTE THIS ADDRESS WILL ALWAYS BE AROUND ZERO AS ALL REVENUE IN THIS ADDRESS IS NOW SENT TO THE xSTEP STAKING CONTRACT
All fees collected on the Step Finance platform will be directed to this address. Starting 14 October 2021, this fee address started distributing STEP that has accrued as revenue to stakers in the xSTEP contract. This means periodic transactions (daily?) of STEP will be made from this address and sent to the xSTEP address for distribution. There will also be multi-step transactions as the team unstakes and sells LP rewards into STEP too to be sent.
The fee wallet linked above started collecting fees 16 June 2021.
Fee Paying Services on Step
- ​Swap page - Total fees for a Swap on Step are 0.3% with 0.2% of that fee going to LPs of the pool and 0.1% going to STEP Stakers. In the event of a Swap being routed over multiple pools then the maximum fee is 0.52% with 0.4% going to LPs (0.2% for each pool) and 0.12% going to STEP stakers (0.06% in each pool).
- Settle Balance - 20% referral of the fee on settling an order from the Serum DEX on Step.
- Compounding Yield Farms - 0.2% fee on the claimed amount.
- Yield Farm Creation - Requires 10000 xSTEP to create a farm which is locked for farm duration.
More TBD….
Step AMM
Step follows a similar model to Bancor whereby all pools on the Step AMM are mandated to have 50% of their liquidity denominated in the protocols native token, STEP. This ensures that an increasing AMM TVL also equates to more STEP being required to be locked as liquidity in the Step pools and therefore more STEP is either removed from circulation or bought to support this.
As swappers use the AMM they are rewarded with the below Reward Options which incentivise swaps, increase APYs for pool LPs, which incentivises more liquidity, which reduces slippage, which generates more fees on higher TVL and so on in a positive feedback loop.
The AMM is also the first on Solana to have an Atomic Router contract whereby swaps between pools (e.g. A to B and B to C) are done atomically in one transaction (not two) for optimal pricing, easier arbitrage and enabling any token to any token swapping.
Reward Options
*COMING SOON Q4 2021
Users of the Step Swap function of the Step AMM are rewarded based on the amount of fees their address has paid over a 5 day period. These users are rewarded with a Call Option on STEP with an OTM Strike.
This is a far more productive method of new emissions to enter circulation as it only happens after a fee to the protocol has been paid, new supply only enters circulation in a bull market, mercenary ‘farm and dump’ LP emissions are avoided and Treasury accrues USDC from exercised Reward Options which is used to set floor pricing on STEP and market buy STEP to be sent to xSTEP stakers.
Intangibles
Step is one of the most used platforms on Solana with one of the highest monthly active users of any Solana protocol.
This is due to Step’s product offering being very broad- portfolio management is needed regardless of bull markets, bear markets or any specific protocol a user finds themselves in. As long as Step has a lot of eyes on the product daily, a % of these users will use Step as their preferred location to undertake specific fee paying actions. With continued user growth on Defi and Solana, this will increase the number of these users paying fees to the Step protocol which is beneficial to revenue generation for xSTEP stakers.
Future Value Accruals and Utility:
There are many future value accruals and utility features yet to be built on Step. We are always adding more and have planned many more. Some of these include:
- Stake for Access (premium portfolio metrics/data etc)
- Paid reporting (CSV/Excel reports etc)
- Future contract revenues (aka Yearn style meta-pools)
- Step DCA service.
- and many more...
Stay tuned to our socials and blog for important announcements on this front!
Last modified 1mo ago
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