📚 Interactive Guide: Basis Points in Vibratile Credits
This guide provides an overview of Basis Points (bps) and their role in Vibratile Credits.
📏 1. Definition of Basis Points
Basis Points (bps) are a unit of measure used in finance to describe percentage or rate changes.
1 Basis Point = 0.01%
📊 Quick Reference Table
| Basis Points (bps) | Percentage (%) |
|---|---|
| 1 | 0.01% |
| 10 | 0.10% |
| 50 | 0.50% |
| 100 | 1.00% |
💳 2. Vibe Credit Calculation Using Basis Points
Vibratile Credits are determined by Basis Points within each Vibe Class. These Basis Points can be retrieved from individual contracts to ensure accuracy.
😊 3. Good Vibes and 😠 Bad Vibes
User behavior impacts the Vibratile Credit Rate through Good Vibes and Bad Vibes.
- Good Vibes: 😊 Decrease the Vibratile Credit Rate as a reward for positive actions.
- Bad Vibes: 😠 Increase the Vibratile Credit Rate as a penalty for negative actions.
🔄 Example
- If you earn Good Vibes, your Vibratile Credit Rate will decrease, reducing your costs.
- If you receive Bad Vibes, your Vibratile Credit Rate will increase, leading to higher costs.
📈 4. Vibe Distribution
🗂️ Allocation of Vibratile Credits
- 🔥 70% Burned: This portion is burned immediately in the transaction where it is collected, reducing the token supply and helping to stabilize the price of Vibratile tokens like XUSD.
- 💰 30% Allocated for Collateralized Debt Positions: This portion is stored and used for overcollateralized debt positions, acting as a financial buffer.
🔥 5. Burning Mechanism Overview
While interactive simulations aren't included, here's an overview of how changing the burn percentage impacts the ecosystem:
- At 70% Burned: Provides a balance between reducing supply and maintaining funds for collateral.
- Increasing Burn Percentage: Further reduces token supply, potentially increasing price stability but decreasing funds available for collateral.
❓ 6. FAQs
1. ❓ What are Basis Points?
Basis Points are a unit of measure used to describe percentage changes in financial rates or values.
- Example: 50 bps = 0.50%
2. 😊 How do Good Vibes and 😠 Bad Vibes affect me?
- Good Vibes: 😊 Decrease your Vibratile Credit Rate, rewarding positive contributions to the ecosystem.
- Bad Vibes: 😠 Increase your Vibratile Credit Rate, penalizing actions that harm the community.
3. 🔥 Why are 70% of Vibe Credits burned?
Burning 70% of Vibe Credits reduces the token supply in real-time, helping to maintain the price stability of Vibratile tokens like XUSD.
4. 💰 What happens to the remaining 30% of Vibe Credits?
They are allocated for overcollateralized debt positions, serving as a financial buffer that can be adjusted as needed.
5. 🔄 Can the distribution percentages change over time?
Yes, the allocation might change, with potential shifts towards increasing the burn percentage to further stabilize the token price.
6. 📄 How can I retrieve the Basis Points for my Vibe Class?
Basis Points are retrievable on each individual contract associated with your Vibe Class.