Solar Buy and Sell Fees

Solar buy and sell fees are an important component of the SAP. They provide capital for performing critical functions to the protocol as noted in the Solar Token section of this White Paper.

Other protocols utilize selling bonds to support the same functions as Solar fees, but we believe that approach is riskier because if bonds are not purchased, the token can lose its support and spiral downward in price as we have seen with several of these bond based protocols.

Selling bonds also costs token holders. It reduces the amount of APY that can be offered and eliminates the ability to offer a stable APY.

The amount of the fees (13% for buys and 18% for sells) allows us to provide $SOLAR holders with the stable high yield of 102,483.58% annually by using these funds to farm and increase our treasury value in turn, further backing the yield provided.

One additional benefit of the high fees is that Solar is the only token that benefits when Whales dump because the fees collected support $SOLAR holders.