# Truffle Bank

#### 1. What is TRUFFLE BANK?

* You lock TRUFFLE (any period from 1 day to 4 years) in the TRUFFLE Bank to receive X TRUFFLE token as a receipt. (Proportionally, the longer you lock, the more xTRUFFLE you will receive. A 4-year lock will give a 1:1 ratio of TRUFFLE to xTRUFFLE conversion.)
* By just holding xTRUFFLE, everyday you get BUSD reward from 4% TRUFFLE trading volume, plus 1.16% TRUFFLE interest (auto-compound to **980.990,50%** APY for you). You will get back your locked amount after 60 days if you lock for 4 years.
* BUSD rewards are calculated based on your proportion percentage of the overall xTRUFFLE in circulation, this percentage gives you a proportional access to the funds accumulated from the pool collected from the 4% TRUFFLE trading volume, accumulated from the buy & sell tax.
* xTRUFFLE holders can vote in TRUFFLE DAO governance for important factors such as transaction tax change...
* You can unlock xTRUFFLE before time but 80% of your locked TRUFFLE will be burnt.

#### 2. Why TRUFFLE Bank is an innovative feature that helps the TRUFFLE system long term?

How does TRUFFLE Bank play a crucial part in keeping TRUFFLE value sustainable long term?

* The more people that lock their TRUFFLE to xTRUFFLE, (usually from 2 weeks to 4 years), the fewer TRUFFLE tokens are in circulation. The price of a token is based on supply/demand. So xTRUFFLE will help reduce the supply and increased the demand of TRUFFLE as new investors will have to purchase from the limited supply in circulation, this will support the TRUFFLE price, long term.
* The more TRUFFLE that is locked, the less new TRUFFLE is printed. This is due to the fact that when you lock your TRUFFLE to xTRUFFLE you receive the BUSD from the 4% of  TRUFFLE transaction volume and about 1.16% TRUFFLE rewards everyday compounded to 6,633.17% a year. If you don't lock your TRUFFLE you will receive 2.5% rewards everyday. So 50% less TRUFFLE is printed for all locked xTRUFFLE which means less inflation.
* xTRUFFLE is a way for TRUFFLE holders to receive BUSD rewards, this means that holders don't need to sell their TRUFFLE to take profits or, if they do sell to take profits, they will sell less to realize their profit when added to the accumulated BUSD. So less selling pressure means better support price.
* Many people will appreciate their income in BUSD because it feels safe being pegged to the USD. Rewarding BUSD in this market makes TRUFFLE more attractive in the eyes of potential buyers, raising buying pressure and lowering selling pressure is achieved and this is very important for the project long term.
* New users will be comforted to see the diamond handed mentality of the TRUFFLE userbase, knowing that so many users have put such trust into a project, for such an extended period, in a climate where projects are failing after a few weeks, knowing that there is a strong core base of long term investors, who have locked their $TRUFFLE for years, guaranteeing the foundation of the project, will help to stabilize and grow the value of the token over time.

Summary: As you can see by locking you TRUFFLE in the TRUFFLE bank, not only benefits you (return within 60 days) but also benefits all TRUFFLE holders and provides a great sense of community and longevity for new people entering into the system.

#### 3. Locking Mechanism explained.

The locking period will range from 1 week to 4 years, the basic idea is the longer the time you lock, the higher the number of xTRUFFLE you will have. You can only keep or increase the lock time, you cannot lower your lock time.

So before you lock your TRUFFLE you should consider how long you will commit your TRUFFLE to this function.

You can unlock your xTRUFFLE to TRUFFLE before the time ends but you can only receive 20% of what you locked, the rest, the remaining 80% will be burnt.

Therefore before locking your $TRUFFLE you should also decide how many percent of your TRUFFLE will be used to lock for xTRUFFLE to receive passive income in TRUFFLE and BUSD.

When you calculated the percentage, let's say  for example that we will lock 30% of our total TRUFFLE, you should then decide how long you will lock your 30% TRUFFLE for xTRUFFLE.

If you lock the TRUFFLE for 4 years, your exchange of TRUFFLE for xTRUFFLE will be 1 TRUFFLE is equal to 1 xTRUFFLE

if you lock your TRUFFLE for 1 year which is equal to 365 days, 1 TRUFFLE = 365 / (365\*4) = 0.25 xTRUFFLE

Of course if you are not satisfied, you can increase your lock at anytime to receive more xTRUFFLE.

#### 4. How to calculate my daily BUSD rewards.

The rewards depend on 2 factors.

The first is daily volume.

The second is your share percentage of the total locked xTRUFFLE

If the daily volume is high but the number of locked xTRUFFLE is also high your rewards might be lower than on other days, but during this time you will still be getting your daily rewards paid out in TRUFFLE equal to 1.16%.

If the daily volume is high and the number of locked xTRUFFLE is low meaning you can have a larger percentage of the total xTRUFFLE you will receive a larger share of the rewards, and will also continue to receive your daily payout of 1.16% TRUFFLE also.

As you can see your daily takings in BUSD depend a lot on daily volume and how others are engaging with the TRUFFLE bank on a daily basis.&#x20;

The beauty of TRUFFLE Bank is there will be a period of fluctuation in the early days as things settle down, but as the nature of the token will push people to lock their tokens for the maximum amount of time, this will mean a large percentage of all tokens will be locked, so will not fluctuate daily, this means that over time the amount of BUSD received by a user will also level off over time, as people find a spot where their BUSD rewards satisfies their requirements.
