DTP Ratio

Take Profit, Every Day
The average investor tends to never take a profit because of their greed, even when in large gain. This is one of the reasons why 90% of traders lose money by not having a clear strategy. On the contrary, the business of finance requires constant dedication and professionalism. Making mistakes is very easy. Uniqo's DTP Ratio solves this.

What does DTP Ratio mean?

DTP stands for Daily Take Profit. The DTP Ratio is a value that indicates the percentage of UNIQO that an investor can sell on a daily basis, according to the ratio between the tokens they hold and the volume of the liquidity pair.

Why is the DTP Ratio needed?

In traditional finance, market makers safeguard investors by integrating multiple "circuit breakers" or "trading curbs" in their policies. These systems are protection measures meant to mitigate the effects of panic selling or manic buying, put in place in order to avoid excessive volatility that could be detrimental for individual investors, especially retail ones.
In the specific case of Uniqo, the trading curb put in place is called DTP Ratio, which is essentially a percentage range in which investors are ranked in order to allow them to take profit of a healthy part of their gains every single day.
The DTP range is calculated taking into account the principle that larger size investors (generally called whales in the DeFi space) have a greater potential impact on the price of an asset, whilst "smaller" retail investors clearly have a smaller impact. On the grounds of this assumption, smaller investors shall have extra room for trading and a larger DTP Ratio will apply to them when compared to whale investors, who in virtue of their larger capacity of generating passive income and making profit will certainly need to be curbed additionally, while naturally guaranteeing that they can still secure their interest.
Implementation of the DTP Ratio as a trading curb, in conjunction with the other features of Uniqo, greatly reduces risks both in the short and long-term, paving the way to a profitable investment.

How is the DTP Ratio calculated?

The DTP Ratio is calculated through use of an equation that fetches the token holding of an investor and compares it versus the liquidity pair. The equation is inversely proportional - meaning an increase in a user's holding corresponds to a decrease in their DTP Ratio - and the result is bracketed between a minimum and a maximum cap to ensure that every investor is guaranteed an appropriate DTP.
An increase in a user's holdings corresponds to a decrease in their DTP ratio. It can be noted that the DTP Ratio will always be contained between the minimum and maximum brackets.
The basic DTP Equation is the following:
y=ax(rectangularhyperbola)y = \frac a x \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, (rectangular\,hyperbola)
In this forumla, y indicates the DTP Ratio to be applied to a given wallet, and x is the percentage value of that wallet holding compared to the Liquidity Pair.
The coefficient a is a constant set in the self-aware smart contract and is used to calculate a raw DTP value with the highest precision. This raw value then goes through a boolean check that applies the cap brackets, as per the values below:
  • Minimum DTP Ratio: 0.1%
  • Maximum DTP Ratio: 1%
Considering the cap brackets shown above, the DTP Equation can be expressed as such:
y={1if x<1(ax)if 1x100.1if x>10y = \begin{cases} 1 &\text{if } x<1\\ (\frac a x) &\text{if } 1⩽x⩽10\\ 0.1 &\text{if } x>10 \end{cases}
Below is the same equation with variable names:
DTPRatio={1%if userHolding<1%(auserHolding)%if 1%userHolding10%0.1%if userHolding>10%DTP\,Ratio = \begin{cases} 1\% &\text{if } userHolding<1\%\\ (\frac a {userHolding})\% &\text{if } 1\%⩽userHolding⩽10\%\\ 0.1\% &\text{if } userHolding>10\% \end{cases}
Ultimately, this means that any investor has the possibility to take profit every day of a percentage of their invested capital included between the minimum and the maximum DTP Ratios.
Sales are not limited to once a day: the investor can sell their DTP Ratio spread over multiple transactions a day.

What are the benefits?

  • Investors can take profit of part or all of the distributed interest day by day. They can plan their finances, taking what they need to meet their daily expenses.
  • It's easy to average the exit price of an investment, optimizing the profitability of the investment over time.
  • Stability and longevity are granted, accomplishing Uniqo's mission.

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