3. Business Model
We created an environment where all stakeholders get profits from using the TUT.
Last updated
We created an environment where all stakeholders get profits from using the TUT.
Last updated
The goal of the business model is to empower the Community through the TUT token, letting them to capture value from different sources and to being benefited all kind of players (stakeholders).
Stakeholders and entities in the Tutellus ecosystem are:
Students: they pay for learning and earn tokens depending on two factors:
The money they invested (as payback, rewards here).
The interaction and contribution they produce inside the platform.
TUT whitelabel: third parties who can implement their own tokens based on the TUT liquidity (such as Universities or any kind ov company willing to tokenize their incentive system).
Startups: projects born around Tutellus who need to raise funds. They can do it through the Launchpad service (here).
LPs / Liquidity providers: holders who reinforce the protocol adding liquidity (TUT+WBTC in a 50-50) in the farming pool (here).
You can do a lot of things with your tokens. The less profitable is to sell them
As you will see in Tokenomics, we destiny 77% of the supply to Incentives + yield farming rewards:
Everything starts in the Rewards Pool, when the smart contract distributes TUT between Clients, Holders and Users.
Clients (people in paid courses) are the business engine: they receive 40% of rewards in TUT depending on the amount of money they spend on the platform, plus a payback associated (see Rewards).
Holders also receive 40% of rewards in TUT, applying a Rich List method (the more you hold, the more you get). Holders can put their tokens in the staking contract or farming contract, adding liquidity to the protocol and been rewarded by it (see Yield Farming).
Users (people in free courses) receive 20% of rewards depending on their contribution and their interactions helping other students; this is a second business engine: the more a student is being helped by another, the more options to convert in a Client (see User rewards).
Let's continue with holders; a token holder can decide:
To sell tokens in the pool: that's right, he gets BTC and ends the game.
To stake TUT tokens in the FC2: the Community bank we'll describe later. He gets rewards + fees paid by content creators due to the financial service.
To reinforce the protocol with liquidity: they add TUT+BTC to the pool, getting higher rewards and transaction fees.
To hodl and get benefits: they just hold a certain amount of TUT in their wallet.
To buy product & services in TUT: Paying in TUTs makes you get discount+payback again, which is quite profitable: all products paid in TUTs are 10% cheaper than in cash (see client rewards).
As we describe in the chapter 9 the pool is built over the Polygon network using Sushiswap as AMM. This is the most innovative cross-chain AMM, with a lot of services, layers, inter-protocols and value added to all LP holders and users.
If you are a LP token holder and contribute with liquidity you will get more BTC in your LP tokens if TUT grows in value faster than BTC (as we expect):
Let's suppose you add liquidity (ie) of $6.000: $3.000 in TUT + $3.000 in BTC.
As TUT price starts in $0.25, let's assume price grows to $1 in 3 months (+400%).
In 3 months it's really difficult that BTC grows also 400%, so your LP tokens will reduce the number of TUTs to keep the invariant (see docs in Sushiswap).
So following the rules, if the algorithm reduces your TUTs increasing your exposition to BTC tokens.
The contract that rewards you to stake TUT tokens.
If you wanna get some rewards just for hodl your TUT tokens the best choice is to put them to work in the Staking contract.
The Staking contract shares 20% rewards described in Yield Farming between holders applying a simple method based on RichList: the more TUTs you have, the more rewards you get. Some contract features:
Unstaking fee from 10% (30 days) - 0.1% (+30d). All fees the protocol get are for TUT burning, so the only benefited is the holder.
Each time you add new liquidity to the contract the unstaking timetable reboots.
Claim has no fees (just gas).
The Community Bank that boosts the ecosystem. Coming soon.
If you want to get higher rewards and support / empower the content creators work, the FC2 suits you: a contract that gives you rewards acting as a lending/deposit product (Compound, Aave and so on).
The FC2 (Fund for Content Creators) is an smart contract where content creators can apply for loans (in TUTs) or holders can deposit their TUTs for getting loan interests & rewards.
Credits are based on the teacher relevance;
Teachers can apply for two kinds of products in FC2:
Advance payment, depending on the due money to be paid by Tutellus; a teacher gets paid in 90 days, but can apply in FC2 to get the money before.
Loan, depending on his historical data in the platform; the collateral needed to apply the loan is based on his historical data: monthly revenues, frequency, seniority..., and we will freeze his future benefits until the loan gets paid.
The business model is simple: users applying for loans pay an interest which is later distributed between the stake holders (80%) and Tutellus (20%). We use our profit to buy and burn TUT tokens.
So the FC2 APP will regulate the interest rate depending on the available liquidity in the adress: for example, if most of the TUT staked is borrowed to users (students or teachers) the price will be higher. We're gonna use Compound's algorithms to build that. Minimum interest fee will be 10%.
