Incentivization and APR

To drive the AUM size of the Avareum fund, an incentivization method will be used to induce investors to invest in the Avareum protocol. In the first year, 26.737m tokens will be distributed to investors according to their investment size.

This APR is counting only APR from AVAR token and does not include APR for the Avareum fund performance.

Let's say an AUM size starts at $1m at the launch date. Given a mature market situation, the fair price of AVAR will be:

\text{fair price}=\left(\dfrac{$20,000}{56,737,109}\right)\cdot30=$0.0106

Assuming 0% growth in AUM size, an APR for investors on day one will be:

\text{APR}=\left(\dfrac{$0.0106\cdot73,252.35\cdot365}{$1,000,000}\right)=28.34\%

In the first month, AUM's size grows to $10m. The fair price of AVAR will be:

\text{fair price}=\left(\dfrac{$200,000}{$56,737,109}\right)\cdot30=$0.106

Assuming 0% growth in AUM size, an APR for investors will be:

\text{APR}=\left(\dfrac{$0.106\cdot73,252.35\cdot365}{$10,000,000}\right)=28.34\%

In the first year, the APR will be stable since the cash flow in SSAV will always grow correlated to the growth of an AUM size in the Avareum fund.