Dear All Feeders,

Background

If you have been following team-progress, you’ll notice that we were in dialogue with a Vault partner, which is among the largest in BSC with between $500 million to $1 billion in TVL. We can’t name them for obvious reasons. The talks have ended and the conclusion was they would be happy to partner and launch a Feeder Finance Vault on their platform and promote the vault to their 15,000+ users, PROVIDED we support a vault booster worth a significant amount of $$ and that we pass their DD (we’re not worried about the second part).

This vault will invest in our Farm and Staking Pool and automatically compounds. Something you guys have asked me to look into, and this is really what came out of it.

The conclusion though is that our Dev wallet couldn’t afford it and won't be able to for some time. Our timelock doesn’t end for another two weeks or so and we’ll need it for additional developers too. We just can’t afford it, to be completely frank.

How to solve this?

Some of you may have read in the doc, some of you may have missed it, the way our Tokenomics have been planned is for 5% Farm withdrawal fees to be used for a buyback of FEED in the market and distributed to Stakers.

The way it should be done is, to remove the accumulated BNB and FEED, which currently sits in the Liquidity Pool, and then using the BNB for market buying.

However because the Staking Pool has only launched, this amount was just accumulating and not getting converted. Our plan, initially, was to do this randomly once the staking pool launched as to not create frontrunning opportunities for people; it would be unfair and comes at the cost of Stakers APY.

How many fees have been accumulated?

The mentioned fees, as of the last count, amount to ~4,100 FEED-BNB LPs.

At current prices, they are worth approx. $87,000 at around $21 per LP.

Converting half into FEED would get us 262,500 FEED, together with the existing FEED into the LP, that is a total of ~520,000 FEED

Now what?

Were we to distribute 520,000 FEED back into the staking pool slowly over time, on average this would roughly amount to ~ 3% in increased yields for stakers.

Calculation

~59,000,000 FEED for Farming remaining * 30% for Staking = 17,700,000 FEED
520,000 / 17,700,000 = ~3%

Here is the highlight:

We’re going to ask YOU, to make a tough decision. It is YOUR APY, and you have the right to decide what to do with it. We’ll respect it either way.

We’ll put up a proposal to ask you to vote in support of the Feeder Finance Team using the accumulated Fees prior to the Staking Pool launch for this Vault partnership and other purposes of marketing. Most of it will go to the vault partnership though, we just can’t disclose the number.

Clearly, this can be audited as the money flow is transparent on the blockchain. We’ll be transparent about it so far as not to breach confidentialities.

Now, why is this a good idea?

The capital used as a booster will be to enhance the vault APY for investors of their vault. It is likely you’ll want in on that too – and you should!

The kind of marketing impact this will have is significant, to say the least, and cannot be bought with influencers and some banner ads. We’re DIRECTLY targeting the people that will be OUR target market for the product, and investors who KNOW vaults, USE vaults and WANT vaults.

This will likely lead to future discussions for a partnership in terms of our core product. We envision our product being a compliment, rather than a competitor. And one partnership may lead to others. We look forward to that very much.

You get all of the above, by sacrificing 3% of additional APY. It’s really not that much.

We’ll respect your choice and will do our best to make sure our marketing is strong regardless of your decision. We do hope you take your time to consider this very carefully and vote for what you think is best for Feeder Finance and our community.

Who's eligible to vote

The APY we're voting to shift over to our partnership is meant to go to Stakers. We, therefore, think it still makes sense for Stakers to have the final say in how it should be used.

Investors that were in the farm, who have paid the withdrawal fees were either exiting entirely, and will have no say, or has moved over fully/partly to Staking and therefore will get to participate too.

Holders of sFEED in the wallet will receive voting rights.

How is this going to go?

• Discussions start Monday, May 10, 5.30 PM GMT +1 to Wednesday, May 12, 7 PM GMT +1
• Snapshot block for sFEED holders: 7354500 (https://bscscan.com/block/countdown/7354500)
• Voting starts Thursday, May 13, 12 AM GMT +1 and ends Friday May 14, 12 AM GMT +1