"The Reservoir is the DRIP Network’s solution for players that want benefit from non-inflationary yield farming through adding liquidity to DRIP."
Unlike the faucet the reservoir contract only accepts BNB and pays in BNB. Once you put in BNB you get back a token called DROP (Drop is a BEP-20 token pegged to the BNB/DRIP Pair). All the BNB that is added in the reservoir locks liquidity. This ensures long term liquidity and price support thus keeping the liquidity floor stable. It is important to have a healthy supply of BNB and Drip to enable users to buy and sell at ease without huge spreads.
Interestingly the reservoir may be used to create a passive income of BNB that will in turn pay for the gas fees charged when using the faucet.
Rewards are received from system taxes. Earnings depend on the amount of activity in the reservoir (players joining and leaving). This amount is a sum of the BNB deposited and earnings through compounding.
The percentage of the reservoir that a player own. It also determines how the BNB rewards received.
Reservoir Taxes - there are two main taxes - Deposits 10% and Withdrawals 10% . Each can be broken down as follows:
5% goes to the reservoir pool to pay all stake holders
3% gets locked in the liquidity pool
2% goes to all players in the reservoir upon each transaction in or out
Example of Instant Rewards
Let's say a player deposits $40,000 worth of BNB
Assuming 1 BNB is $400 then$40,000 is equal to 100BNB
Deposit Tax of 10% = $4000 and will be divided as follows
(5%)2000 to reservoir reward pool
(3%)1200 permanently lock in liquidity pool
(2%) 800 stake holder (if you have 0.85% stake you get 25.5USD)
The Reservoir Pool pays out 2% of its balance in rewards to everyone in the reservoir according to their share percentage. A player's share of the Reservoir will fluctuate as new players come in and out. To remain at the top
of the game it advisable to keep adding BNB. Rewards are time weighted so player's that have been in the reservoir for longer periods will get rewarded more. Time weighted rewards are calculated by the number of swaps take place and the number of other players that get in and out after a user joins the reservoir.
Claim or Compound
Players have ability to claim their BNB earning into their crypto wallet or they can also add them to their Total Drops amount and keep growing their investment. There is no tax on claiming or compounding.
Withdrawing all the Total Drops
It is possible to withdraw all your drops. First you need to withdraw DROP into your rewards to be able to collect BNB. This is a 10% tax. Then you are able to claim your BNB at no additional fees.
When DRIP is bought in the fountain the BNB is sent to the reservoir.There is also a 1% fee on DRIP/BNB swaps. This fee goes into the reservoir pool and helps add more BNB in the reservoir.
Interestingly the reservoir may be user to create a passive income of BNB that will in turn pay for the gas fee changes when using the faucet.
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