Announcing ADDY Buybacks

With the release of our Certik audit results, we’ve now started our ADDY buyback system. A certain proportion of the performance fee dividends will be used to buy ADDY on the market and distribute it to lockers in our new boosted contract.

The Adamant community recently voted to allow up to 50% of our performance fee dividends to be used to buy ADDY from the market and distribute that to users who have locked ADDY in our new boosted contract.

The 50% number was chosen because other well-performing platforms that do buybacks also use 50% of their income to do buybacks i.e., Curve. This number can be adjusted based on the results of the trial: The initial buyback program will be done for a month in order to gather data. If buybacks are found to be effective in stabilizing the price of ADDY, they will be continued.

In order to prevent frontrunning of these buybacks:

  • The time that buybacks occur will be random throughout the month.
  • The amount purchased during each buyback transaction will also be random.

Up to 50% of the performance fees will be used for the buybacks. Based on community feedback, we will start the system gradually and in proportion to the number of locked-in the new boosted contracts.

Calculating the percentage of performance fees used for buybacks:

  • The # of ADDY locked in the new contract divided by the # of total ADDY locked, then divided by two.
  • For example, currently, around 16% of locked ADDY is in the new contract. That means 8% of performance fee income will be used for the buyback program. (Starting the buyback system gradually avoids hurting users in the older lock contract.)

Users with ADDY locked in our new boosted contract will receive 100% of these buybacks, in proportion to their number of ADDY locked.

Those in the older locking contract will receive the benefit of a stabilized ADDY price, and once their ADDY has vested in the lock can withdraw it and lock it in the new locking contract to receive the same benefits.

You can tell your ADDY is in the new boosted locking contract if you see it in the area screenshotted above on the staking ADDY page.

Once you have accrued some ADDY buy either being rewarded it, or buying it off the market, you can lock it here. You can lock as much as you’d like and for up to 4 years. Learn more about the new boosted lock here.

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