A community inspired DeFi Experiment built on Ethereum.

V1 General Information

Disclaimer

This material is provided for informational purposes only and is not an offer or a solicitation to buy or sell any securities or other financial instruments. Tokens are not intended for speculation and afford the holder no rights in, or claims to, any of the assets of BankEth or in any way a share in any profits that BankEth may achieve.

This document is subject to change and must be accompanied by the previously-agreed-to documents, which remain in effect regardless of decisions to participate or engage with BankEth.

This paper describes the current vision for the BankEth Protocol. While it is intended to realise the vision of the community, participants recognise that any outcomes are dependent on multiple unknown factors and subject to unpreventable or unknown risks. There are no guarantees surrounding how the BankEth Protocol may be received or adopted or further disseminated by participants, marketers and the wider community. We do not guarantee, represent or warrant any of the statements in this paper, because they are based on our current beliefs, expectations and assumptions, of which there can be no assurance due to various anticipated and unanticipated events that may occur.

It is the goal of the community, individual or community partnered marketers, contracted developers and general participants to realise the vision outlined in this paper however there are no guarantees surrounding the final outcomes of the BankEth Protocol. Blockchain technology, cryptography and the wider cryptocurrency community is still in its early stages of adoption, understanding and development and will likely be subject to many challenges, competition, regulation and the need to adapt to a changing environment both technologically and socially. The network will try to keep the participants and wider community up to date as the project changes or evolves but undertakes no obligation to do so.

Interested parties acknowledge that the BankEth Protocol, as described in the BankEth whitepaper, may never in fact operate as intended. A BankEth token is intended solely as a mechanism for using the services offered through the BankEth Protocol. BankEth tokens are not for speculative investment.

No promises of future performance or value are, or will be made with respect to BankEth tokens, including no promise of inherent value, no promise of continuing payments, and no guarantee that BankEth tokens will hold any particular value.

Introduction

At its core, BankEth is an experiment in decentralized finance (DeFi) coupled with alternative tokenomics. To date, most projects and their accompanying tokens rely solely on market price.

As the wider blockchain community has evolved, it has seen many variations and implementations of this traditional approach and developers have now started exploring alternate protocols where burning of tokens, airdrops, staking and other methods have forked away from the standard way in which tokens have been used and traded on the contract level. One of the newer and more popular protocols/implementations is where users can increase their overall holdings and percentage of the supply by simply holding. Several projects leverage hard-coded mechanisms within their protocols/contracts to either reduce the overall supply via token or coin burns or through transactions and wallet-to-wallet transfers. In some cases, these protocols also provide a dividend to the holder through the use of a ‘redistribution’ which occurs on the contract level. These existing models could theoretically increase the value of a user’s portfolio, however since the dividends that are being redistributed are in the native token traded, the actual value and outcomes hinge entirely on the ability of the native token to maintain and/or increase its value. So, in reality, the user is entirely dependent on the success and longevity of a project and accompanying native token alone; rendering the redistributed dividend worthless in the event of failure.

Foundations

Banketh foundations include:
  • Each BankEth token could have a store of value independent of the market price.
  • That the BankEth Protocol/Contract is safe, secure and stable.
  • That the BankEth Protocol is community-driven and eventually community-owned.
  • That the BankEth Protocol is an experiment, always evolving with the community and Ethereum network.

The BankEth Protocol is built upon the foundations of the Ethereum network, an exploration into moving away from the traditional native token redistribution model. This is because it is widely recognised that there is no realistic way of predicting the value of a token or how it would be received by the community long term. In an effort to provide participants in the BankEth community an opportunity to simultaneously participate in our protocols experiment, we explored a way that we could offer holders a hedge to BankEth tokens' unknown future value via the use of Ether reflections.

The Ethereum network is arguably one of the most impressive and widely adopted use cases of blockchain technology to date. Similarly, ‘Ether’, the native token of Ethereum’s ecosystem, underpins its functions by at all times remaining essential. It does this by maintaining and remunerating those that ensure the network's stability through the validation of all on-chain activity via Gas fees. This means there is consistently a demand for ‘Ether’ from users interacting with dApps or projects built on Ethereum or simply interacting with any contract. This maintains a demand separate from traditional market speculators. As a result the value of Eth has, to date, consistently gained value and is comparably less volatile than other cryptocurrencies available to users today.

This is why one of the first core features in the BankEth Protocol includes a reflection dividend in Ether because the value is decoupled and not dependent on the value of the BankEth native token alone.

Reflection Utility

Reflection tokens are a type of contract that permits redistribution of dividends not necessarily native to a project's token. These contracts are relatively new and novel to the crypto space and are typically applied as follows. When acquiring a token on a decentralized exchange (DEX), there is a tax or contribution that is triggered on the smart contract level. This contribution is then distributed to the token holders, based on the percentage of their holdings relative to the supply of tokens in circulation. For example, if you own x% of a particular token’s circulating supply, you receive y% of the contribution that is redistributed as reflections to all holders of the native token. Depending on the specifics outlining a contract's ability to interact with a DEX, the contribution is incrementally swapped for a compatible token with sufficient liquidity via the DEX’s router. The amount of the dividends reflected are dependent on the amount of volume being bought or sold at any given time, and price is not an indicator of volume.

BankEth has a 10% buy and sell tax that is redistributed into the BankEth vault/dividend contract. A transaction contribution of 1% is added to support ongoing development and maintenance of the project.

There are 1,000,000,000 BankEth tokens in circulation and there is no mint function in the contract, hence supply is fixed. A user's BankEth tokens are also the keys to the BankEth Vault or the dividend contract. Simply put, when receiving a transfer of BankEth tokens from another holder, one will also automatically receive an equal number of BankEth Dividend Tracker Tokens. These tokens interact with the dividend smart contract and automatically assign the BankEth tokens a share of the Ether collected, assigned to the wallet they are first housed in. There is an equal number of dividend tracker tokens for every BankEth
in circulation. When you move your BankEth tokens, the dividends that were allocated for the time period holding will remain in the original wallet and new dividends are assigned from the moment the BankEth tokens arrive in your new wallet. Dividend tracker tokens are destroyed by the blackhole dead wallet when selling and also minted from the dead wallet when purchasing from the Uniswap liquidity pair. 

All redistribution tokens experience cyclical levels of volume impacted by investor sentiment, risk appetite and wider market forces. For example, when Bitcoin or Ethereum prices rally, it is not unusual to see the price and volume of smaller cap tokens to decrease.

24 Hour Volume Chart
Tokens
% Total of Supply
Tax
Volume
Daily ETH Reflections
APY
10,000
0.0010%
10%
$1,000,000
0.0003
271%
50,000
0.0050%
10%
$1,000,000
0.0015
271%
100,000
0.0100%
10%
$1,000,000
0.0031
271%
500,000
0.0500%
10%
$1,000,000
0.0155
271%
1,000,000
0.1000%
10%
$1,000,000
0.0309
271%
5,000,000
0.5000%
10%
$1,000,000
0.1546
271%
10,000,000
1.0000%
10%
$1,000,000
0.3100
271%
*Tokenomics based off 1M Daily Volume.

Objectives

It has always been the goal of the BankEth Protocol to be a user-friendly and frictionless introduction to the world of decentralized finance (DeFi) by providing access to some third party products which are well established and recognised by the community. Our intention is to leverage the reflections that are generated into the dividend contract (vault) and to give users the opportunity to decide whether or not to either claim their reflections, re-invest for more of the native token or to stake (lock) their holdings for further reflections. Another objective is to give users options to use (lock) their share of unclaimed Eth in the dividend contract and put it to work in a pool or lending contract with a third party. There are many well-established, third party, Ethereum-based DeFi platforms such as Compound, Aave, Yearn. Each offers a variety of pools, staking or lending contracts, all with varying degrees of risk and accompanying potential APY (the real rate of return earned on an investment). It is our goal to give users of the BankEth Protocol the option to further leverage their unclaimed Eth to potentially yield an additional % on top of their redistributed reflections from the BankEth dividend contract.

The community and technical team exercise considerable care and due caution when selecting viable options for the BankEth community, given the potential for risk. These risks could extend beyond the security of the BankEth dividend contract. These risks include, but are not limited to, potential exploits in the contracts of the third party platforms, impermanent loss due to fluctuations in third party pools, and permanent loss due to the mismanagement of funds by third party protocols.

In the event that it is not feasible to directly connect the accrued Eth in the dividend contract, BankEth will create easy-to-understand pools where users can contribute Eth to earn interest. Users will be able to claim Ether into their wallets and also contribute additional ethereum into contracts. These pools are quite simply portals connecting BankEth users to existing DeFi products, and the BankEth Protocol will not take any commission (nor be liable) as these pools are merely a bridge to third-party contracts.

Dashboard

As far as the mechanics behind reflections, we decided the most responsible thing to do was to develop and deploy our own implementation of the Eth reflections process. We have created a unique dashboard dApp filled with features with all of these provisions included. The good thing about doing it this way is we can have the feature fully audited and implementation will be available for the public to see in the contract on Etherscan. It will also not be able to be changed by any third party. Despite the fact FTP for Eth reflections has been used by multiple other projects, we did not have any need to use them for this process.

The dashboard is designed to be very intuitive and easy to use, even for those new to the space. There was no need to over-complicate the process; drawing us to the clean minimalistic aesthetic often seen in Apple applications. We have run countless tests on the dashboard and whilst there is some potential for complications with the introduction of the EIP, they are minimal and will be easily resolved by our customer service team, should they arise.

Dashboard FAQ

Why is there no auto claim feature? 
How does Auto-reinvest work?
What happens if I sell my Banketh before claiming my ETH?

Anti Dump Mechanism

We wanted to employ some kind of unique, Anti-Dump, time-locked wallet mechanism where all sales are limited to an aggregate summation of ≤ 0.2% of the total supply per wallet, every 24 hours. This is designed to hopefully mitigate volatility, limit large volume swing trading and whale manipulation. So, if someone has 2% of the supply in their wallet, they are only able to sell 0.2% of the supply or less in a 24-hour window. A wallet transfer of this size will also enable the 24-hours wallet hold, so they are unable to simply send out to multiple other wallets and dump all at once. In essence, it would take 10 days for them to dump their entire supply back into the market.

Vesting

In the initial phases of any project launch exposure is key. It is important to get the name of the project out there and this comes at a cost. Funds to cover such processes need to be either budgeted for or collected through other means.

The traditional method is to raise funds for a project in a more centralized manner with a portion of the raised funds being set aside for operational expenses. In addition to team tokens, wallets would typically be designated for marketing and partnership purposes. The problem with using such wallets to directly pay for services with tokens when the project is in its infancy, is that these tokens (when disposed of) can have a significant impact on the price of the project - which holders are generally averse to. This is why we explored alternatives.

In addition to using substantial personal funds, the core BankEth team developed a system designed to mitigate this downward pressure on price whilst still providing value to marketers, advisors and strategic partners.

Through use of vesting smart contracts, coupled with our custom vesting dashboard, a marketer could be the beneficiary of project-controlled assets and have the tokens unwind to them over an agreed period of time. During this period the beneficiary of the vesting contract could still receive Ether reflections. So, rather than releasing all the tokens at once, they could, for example, receive them over 30 days. During the vesting period, the beneficiary has the ability to sell the tokens incrementally, thereby mitigating undesirable price impact.

BankSwap

Bankswap is intended to provide a more streamlined pathway for participants to acquire BankEth. Even though most people are familiar with Uniswap, for many the process of visiting a thirst party DEX, & making sure they have the correct contract can be a daunting and cumbersome process. Having a native swapstation is convenient and easy to use. We can also use the Bankswap as a tool to run promotions where all taxes are removed allowing new participants an opportunity to acquire at a discount. As the liquidity for the project is locked to Uniswap, Bankswap calls the Uniswap pair from our website at now additional cost. Bankswap is one way traffic, so all sells take place on Uniswap. Information on how to do so is on the website, informational videos and assistance from the community.

Fiat On Ramp

The fiat on-ramp gives users the opportunity to use standard fiat currency to purchase Ethereum. This gives people the opportunity to quickly accumulate Ether in their wallet and acquire BankEth tokens. Since the regulations are different in every country and we are a decentralized community we used Transak as a third-party integration platform as they have suitable KYC/AML procedures in place to satisfy the regulatory requirements in specific countries. By using this integration platform you are entering into an agreement with Transak, not with BankEth.

Internal Staking & Customisable Redistribution

There are two components of relevance to this concept. Firstly, there is the router and secondly the staking pool. The router is responsible for the allocation of dividend tracker tokens. When a holder wants to stake their tokens they send them to the router and (depending on the lock-up period) the router allocates them a bonus token. The reflections that are received are the allocated tokens plus the bonus tokens.

In the most simplified terms possible the steps are as follows

  • Banketh taker sends tokens to router.
  • Router allocates bonus depending on lock up duration.
  • Router sends staked amount plus bonus to pool.
  • Staker can receive reflections on staked amount + bonus.
  • Stake can be released after lock up duration has passed.
  • Bonus % is guaranteed, however returns still predicated on volume.

Holders with wallets with sub 10k tokens will be able to take part in these pools and there will be options to have tokens redistributed in either ETH, or USDC.

To ensure that this entire process is secure the entire staking contract will be audited before it is deployed, in order to establish verification and to safeguard users’ security.

Liquidity

To provide security and stability to the BankEth Protocol, liquidity of nearly 150 ETH was raised by whitelisted marketers. This was to ensure price fluctuations could be managed, trades could occur in real-time and there would be no bottlenecks during periods of high volatility and trading, as having sufficient funds in the Uniswap pair is essential.

This will continue to be monitored as the market grows and via community involvement. The liquidity has been re-locked moving forward into May 2022 at which point the community will decide where to re-lock. With the liquidity being locked however there is no possibility of making changes to the core contract and doing a V2/fork as those funds are inaccessible unless the community DAO organises another LP raise.

Why does Gas price Fluctuate?

Gas price fluctuates due to limited space in each block. When a user wants to perform a transaction on Ethereum, they must select a gas price. When more users want to perform transactions on Ethereum, they are essentially competing for space on the same block, meaning the user who submits the highest gas price (bid) gets the space on the block and their transaction completed. This leads to users over-bidding and selecting gas prices which can be higher than the current market price. For example, a user might want to perform a transaction urgently, so they select a gas price of 150 gwei, when the required gas price at that point in time may have only been 50 gwei. This makes the transaction higher for anyone else trying to get their transaction onto that block.

What about the Ethereum Improvement Proposal (EIP-1559)?

Even after the implementation of EIP-1559, Ethereum will still experience large fluctuations in gas price. EIP-1559 does not aim to reduce gas fees, it actually aims to make gas fees more predictable. It achieves this by introducing a base fee. A base fee is the minimum fee which a user needs to pay to be included in a block. This base fee fluctuates depending on how much the network is being used and can ultimately increase or decrease by 12.5% per block. This doesn’t change the fact that when more users want to perform transactions at the same time, gas prices will go higher. Similarly, when fewer users are taking part in on-chain activity, the price will drop. Even with these proposed changes, the underlying Ethereum network will still be subject to supply and demand mechanisms that govern the cost of transactions. The team is interested to see how these changes to the protocol will impact the BankEth project and also third-party DeFi wallets which are needed to interact with the BankEth dApp.

BankEth DAO

Given the nature of the blockchain and DeFi, unlike traditional businesses, operations pertaining to this type of project are transparent and visible for everyone to see. Another key difference to traditional business is that DeFi tokens and projects (once minted) are in some capacity guaranteed to be eternal, provided that the underlying network remains viable (BankEth will exist as long as Ethereum exists). Humans, however, are not eternal and lifespans are finite, so there needs to be a realistic plan in terms of how the project is going to be governed. Given that this project was community inspired, the objective is to have the community operate it and own it via the establishment of a BankEth DAO.

In an established BankEth DAO, sovereign ideals are in control of our choices, values and money. Hence, the pragmatic step forward is to investigate handing control back to the community. To do this, the community will need to proactively participate and help us grow this platform the way you want and love to use it.

We have from the start encouraged other developers to contribute and help shape the way in which the project grows outside of the existing roadmap.

We have, from the start, encouraged other developers to contribute and help shape the way in which the project grows outside of the existing roadmap.

In establishing a BankEth DAO - the community can vote on issues relevant to the project and reach consensus on ways of implementing decisions. Hypothetically the community could, through the DAO, suggest and vote to implement any action or initiative. New developers could also take ownership of the contract if the community and the developers agreed.

Changes regarding any of the following would require consultation and the conduct of a vote before any code can be updated:

  • Monetary supply changes
  • Core smart contract functions
  • Expenditure of Funds under DAO management

Any change proposals (BEIPs) will be published onto the blockchain and voting can commence. You will be able to perform this task using your preferred wallet (Metamask, WalletConnect, etc.). After voting concludes, the core development team executes the proposals with the approved funds. This will be either in BankEth tokens or Ether.

It is our aim to reward the Eth reflections collected by our most fierce and loyal community members. The best way to continue to support the community is to remunerate those willing and capable to manage DAO.

Such community members will be known as our core bankers. Any proposals which pass will result in a 5% portion of funds being allocated to banked members and distributed during the funds disbursement for the proposal milestones. Action follows thought, and to keep our DAO alive requires action. We are looking for talent and wonderful people to join our team and keep this movement going. We reward X and wish to fully distribute Y% of the total supply in token to our DAO volunteers,
community managers, and developers for the love and energy they have shown to the cause.

If, after some time, there are no developers that are able to make any contributions towards the long term sustainability of the project through contributions to the DAO’s establishment, or to management of the contract (with the full support of the community), the BankEth contract will be renounced. A renounced contract guarantees the integrity of the contract, however it also means there is nothing more that can be changed or contributed to with regards to the project and it will operate like most other tokens that are renounced.