How Is The APY Backed ?

Palladium has integrated a solid RFV structure which takes advantage of the trading volume fees in order to back the staking rewards (rebase rewards) when the BUSD/PALD pair supply is worth 2.5% of the total supply.

First scenario:

The daily RFV gains are greater than or equal to all the Holders Daily ROI.

$$RFV \geq DailyROI$$

Outcome: this mean that the Swap Threshold can fill the plus-value generated from the Rebase Rewards. All good, nothing needs to happen.

Second scenario:

The daily RFV gains are lower than the Holders Daily ROI

$$RFV < DailyROI$$

Outcome: to ensure Rebase Rewards are paid, a portion of the Treasury is added to the RFV, making up the difference.

$$RFV+Treasury \ge\ Daily ROI$$

The result is a self-equalizing system that promotes consistent high returns over time to every $PALD token holder.