WHITE PAPER TRICYCLE

What is Tricycle

Tricycle is a P2P platform that aims to connect two types of users within the Sanko Pets ecosystem:

1. BUN Owners: Users who own BUNs (NFT characters) but prefer not to manage the farming process themselves.
2. GOLD Investors: Users who have GOLD (in-game currency) and wish to invest in farming activities.

The project automates farming by pooling BUNs and GOLD, managing the entire farming cycle, and distributing profits among participants and the protocol treasury.

What will I be able to stake with Tricycle

Users will be able to stake:

• 1 BUN (waiting for the other counterpart to provide $GOLD)
• 127.5 $GOLD (waiting for the other counterpart to provide the BUN)
• Both assets (BUN + 127.5 $GOLD), therefore using the protocol solely for automation purposes

(Obviously, it will be possible to stake multiple BUNs and many $GOLD, but only in multiples of 127.5.)

How do we manage it

We automate all the farming processes using an algorithm we built internally. Once a user stakes their BUN/$GOLD on tricycle.wtf, a new contract is created and remains 'open' until another user fulfills it with the missing counterpart (if a user stakes just a BUN, the contract will wait for another user to stake the GOLD, and vice versa).

While the contract is in the "open" status, the user will not accrue interest and will be able to withdraw their staked asset at any time. However, once the contract is completed with the required counterpart, it automatically locks the assets for a staking period of 37 days, during which the user will not be able to withdraw their staked assets and will accrue interest in $GOLD with a dynamic APY.

At any time during the staking period, the user will be able to check the status of their staked assets on the tricycle.wtf website. Of course, it will also be possible to stake both the $GOLD and the BUN together in order to use the protocol just for automation.

Operations

1. BUN staked (check that all plots are empty)
2. $GOLD staked
3. Contract matches the BUN and the $GOLD and locks them
4. Check hiberation; if hibernated, buy and fee a bunzempic
5. Buys seeds
6. Plants seeds
7. Sends BUN to sweatshop
8. After 14 days, BUN gets back; wait 3 days for cooling down
9. First harvest
10. Sell first harvest fruits
11. Send users the rewards of the first cycle
12. Plant withered seeds
13. Send BUN to SweatShop
14. After 14 days, BUN gets back; wait 3 days for cooling down
15. Buy Slop
16. Feed BUN
17. Second harvest
18. Sell second harvest fruits
19. Send users the rewards of the second cycle
20. BUN and $GOLD are ready to be claimed back by the user

Rewards

Each user who stakes their BUN/$GOLD will receive their rewards in $GOLD. The APY is not fixed but dynamic; we put a lot of effort into calculating an APY that takes into account the value of the staked assets at any given time. Since the value of $GOLD and the value of the BUN change over time, the APY will change according to the value of the staked assets over the total farming cost (meaning BUN + 127.5 $GOLD).

For example, if the value of a BUN is 500$ and the value of 127.5 $GOLD is 500$, the rewards will be distributed equally. However, if the value of the BUN increases while the $GOLD value stays the same, rewards will be higher for the BUN compared to the $GOLD, since its weight in the total cost of the farm will be higher.

How to claim rewards

The rewards will be claimable by the user in two specific periods:

• First round: at the end of the first farming cycle (after 17 days from staking)
• Second round: at the end of the staking period (37 days), when the user withdraws their asset

We decided to split the profit distribution in this way to reduce the user's opportunity cost. This way, users will receive part of their rewards earlier, thereby reducing their opportunity cost.

Fees

The protocol will retain a fee of 20% of the farming profit. This 20% will not be taken equally but will be taken proportionally to the rewards gained by a given asset. Therefore, if the BUNs get higher rewards than the $GOLD, a higher percentage will be kept from the BUN stakers (however, the sum of the fee taken between the two assets will always be 20%).

Example of APY calculations

For example, by using the current values (at day 22 December 2024), we have that:

• BUN floor price (DMT): 9.7
• DMT/USD: 43.34
• GOLD/USD: 1.28
• BUN floor price ($GOLD): ((43.34/1.28)*9.7) = 327.68
• Farming costs (127.5 $GOLD):
  • 5 gold * 25 plots = 125 $GOLD (for seeds)
  • 0.5 $GOLD (1 slop required during the farming cycle)
  • 2 $GOLD (1 bunzempic for reviving BUNs when staking starts)

Therefore, with the prices of this scenario, the APY that the user will have is:

• 55.5% for $GOLD stakers
• 45% for BUN stakers

APY Calculations Formulas

How Tricycle contributes to the Sanko Ecosystem

TriCycle's automation reduces manual effort, allowing you to sit back while your BUNs or GOLD grow. With lower initial investments and shared profits, we make farming accessible and lucrative. This is how we help you stay ahead in the evolving Sanko economy.

Firstly, we act as a temporary $GOLD sink within the Sanko ecosystem. By encouraging users to stake $GOLD, we help stabilize its value and promote a healthier in-game economy. Our platform incentivizes investment in $GOLD by offering more profitable returns compared to staking $DMT, making $GOLD a more attractive asset and potentially increasing its demand and value.

Future Developments

We are already planning many updates to the protocol, including:

• Reducing the minimum $GOLD that can be staked to 1 $GOLD
• Launching a token of the protocol that will be paired to $GOLD
• Deploying an AI agent
• Developing innovative ways to address asset management in the Sanko industry

Team

The team is composed of 4 members, each able to bring specific expertise to ensure that the protocol has all the required skills to address asset management on Sanko successfully:

• @Antek - The coder who wrote all the backend and ensured the code worked smoothly
• @Tank - In charge of sales and marketing
• @Paolo - Financial knowledge developed during work in the financial services industry
• @locar - Mechanical engineer with high-level coding and artistic skills, particularly in the front end

How are we going to use the rewards

Part of the 20% fee that the protocol retains from the staking contracts is used to boost the Sanko Ecosystem by:

• Increasing the $GOLD liquidity pool
• Creating a protocol token paired to $GOLD
• Buying gadgets from the shop that will then be airdropped through giveaways to the adopters of the platform

It is important to notice that we will not sell on the market, we're planning to keep $GOLD and use it for further developments, if we had to sell any we would just provide downside liquidity but not sell on the market.