Crypto Passive Income - What is FURIO and how does it work?

I’ve seen quite a bit of confusion from people in the Furio Discord and Telegram channels about different aspects of the protocol so I thought I would put together an explanation of exactly how it all works in layman’s terms, both for those that have already invested and for anyone looking to invest but still unsure.

I’ve tried to keep this as simple as possible. Unfortunately, it is quite a long read but includes everything you need to know.

I’ve broken this up into the following sections:

1. How does the variable daily rate work?

2. How much can you earn?

3. How can you access your principal?

4. How do the referrals work?

How does the variable daily rate work?

Before I explain this it’s important to understand right away that the daily rewards accrue on a 24-hour schedule. This means that every 24 hours you must either claim or compound to start the daily payment again for the next 24-hour cycle. So don’t wait a week with no action because you will just delay your ROI by 7 days. There is an auto-compound function available to save you the hassle of having to interact with the contract every day, however, just monitor gas fees as its higher than doing it manually.

The daily yield varies according to how many times per week you either claim your rewards or compound them back into the vault.

When you begin with your first deposit into the vault the daily yield is set at 1.75%. At this rate you are allowed to make four claims within a rolling 28 day cycle, without the rate changing.

If however, you make no claims for 28 consecutive days, the yield increases to 2.5% per day and you will have to keep compounding every day without claiming to maintain it at 2.5%. You can continue to compound at 2.5% daily all the way until you reach the maximum number of 27,777.78 token balance per wallet.

If your strategy is to rather claim some profits back while you’re growing your vault balance, you can do so as follows:

Claim once a week and compound six — you’re earning 1.75% per day with one claim at 1.75%.

Claim twice a week and compound five — you’re earning 1.25% per day with two claims at 1.25%.

Claim three times a week and compound four — you’re earning 1% per day with three claims at 1%.

Claim four or more times a week — you’re earning 0.5% per day with three or more claims at 0.5%.

The purpose of the variable yield is to incentivize participants to compound rather than sell. It also allows you to reach ROI or max payout faster. The higher the rate you’re compounding at, the quicker you make the big bucks.

How much can you earn?

I guess this is the most important question and probably the most confusing, so let’s try break it down as simply as possible.

1. The contract pays each participant a total gross return of 360% on the number of tokens they have in their vault. Let’s assume you were happy to get your 360% and had no interest in compounding your rewards. Let’s also assume that you invest $1,000.00. You purchase $FUR tokens for the equivalent of $1,000.00 and deposit directly into the vault. At the current price $5.50 and after paying the 10% purchase tax and 10% deposit tax you will get (1000/5.5) * 0.9*0.9 = 147.27 tokens in your vault.

2. You are now entitled to claim 147.27 * 360% for a total return of 530.18 $FUR tokens.

3. You start earning at a rate of 1.75% right away so the next day you will have earned 1.75% of 147.27 = 2.58 tokens. Now you want to claim and sell them because your strategy is not to compound. After paying the 10% claim tax and the 10% sell tax you are left with 2.58*0.9*0.9*5.5 = $11.48

4. The next day you will have again earned 2.86 tokens, because you’ve only claimed once and your rate hasn’t changed yet. After you claim and sell you now have a total of $11.48 x 2 = $22.96 in your wallet. You have now claimed 5.16 $FUR tokens and your daily yield drops to 1.25% because you have claimed twice within a week.

5. The next day you’ve earned 1.25% of 147.27 = 1.84 tokens *0.9*0.9*5.5 = $8.20 and a total USDC balance of $22.96+$8.20 = $31.16. Your daily rate now drops to 1% because you’ve claimed 3 times within a week.

6. Day four you’ll have 1% of 147.27 = 1.47 tokens available to claim = $6.55 after tax. Total USDC claimed is now $37.71 and your daily yield falls to the lowest level of 0.5% where it stays.

7. Day five 0.5% * 147.27 = 0.74 tokens = $3.28 after tax. Your total USDC claimed so far = $40.99.

8. Up to this point you have claimed 2.58+2.58+1.84+1.47+0.74 = 9.20 $FUR tokens out of a total of 530.18 and have accumulated $40.99. You are left with 530.18–9.20 = 520.98 tokens which you can claim at a rate of 0.74 per day (0.5%) for the next 704 days (520.98/0.74). If the $FUR price stays at the top end of the LMS range of $5.50, this equates to $3.28 x 704 = $2,309.21.

9. So, your total net return after all taxes will be $40.99 + $2,309.21 — $1000.00(your principal) = $1,350.20 or 135% over 2 years. You might be disappointed that your 360% gross return has turned into a net return of 135% but let’s be honest, in the real world 67.5% is still an insane annual return. However, when you add compounding into the equation things get much more insane. Let’s take a look…

10. We’ll use the same investment as the example above but this time we wont claim at all and keep compounding each day until we reach the maximum vault balance of 27,777.78 $FUR tokens.

11. For the first 28 days the contract will yield 1.75% per day multiplied by the number of tokens in the vault, and 2.5% a day thereafter. Remember we will be re-investing the yield daily so each day the number of tokens in the vault keeps increasing. At this rate it will take about 235 days to have accumulated 27,777.78 tokens in your vault starting with the 147.27 tokens. At this point the contract will stop allowing you to compound your daily rewards as the maximum you can claim is 27,777.78 * 360% = 100,000 tokens. You’ve hit maximum payout and now all you can do is claim the daily rewards. Its up to you to decide how many times per week you want to claim, and your claim rate will change depending on the frequency. But let’s assume you claim every day. On day one your rate is still at 2.5% so you can claim 2.5% of 27,777.78 = 694.44 tokens before any tax. After claim, sell and whale tax you’ll net 506.25. On day 2 your rate will move down to 1.75 %, which nets out to 354.38 tokens. Day three and four are also at 1.75% which nets you 354.38*2 = 708.75. On day 5 your rate moves down to 1.25% which nets 253.13 tokens and on day six you’ll get 1% or 202.50 net. Then on day seven the rate drops to 0.5% and stays there until you’ve claimed all 100,000 tokens. The only thing that changes now is the whale tax. As you claim more you will move up into higher whale tax brackets. The net amount of tokens you can claim now starts at 101.25 and slowly reduces down to 61.88 each day when you’re in the highest whale tax bracket of 45%. The whole process will take 706 days to claim everything.

12. For this example, I have used a $FUR price of $4.50 which is the bottom end of the LM range. Once you have claimed everything and paid all taxes including whale taxes, you will have earned the following in dollar terms:

1 daily claims of $2,278.13 (whale tax = 10%)

3 daily claims of $1,594.69 = $4,784.06 (whale tax = 10%)

1 daily claim of $ 1,139.06 (whale tax = 10%)

1 daily claim of $ 911.25 (whale tax = 10%)

1 daily claim of $ 455.63 (whale tax = 10%)

72 daily claims of $ 430.31 = $30,982.50 (whale tax = 15%)

72 daily claims of $ 405.00 = $29,160.00 (whale tax = 20%)

72 daily claims of $ 379.69 = $27,337.50 (whale tax = 25%)

72 daily claims of $ 354.38 = $25,515.00 (whale tax = 30%)

72 daily claims of $ 329.06 = $23,692.50 (whale tax = 35%)

72 daily claims of $ 303.75 = $21,870.00 (whale tax = 40%)

267 daily claims of $ 278.44 = $74,342.82 (whale tax = 45%)

Total net payout $ 242,468.46

This is a total net return of 24,247% or a 242 X and it’s taken 235 days to get to max wallet and then a further 706 days to claim everything, or 2,5 years. Compare that to the 135% earned without any compounding and you can see why Albert Einstein famously said compound interest is the 8th wonder of the world.

Here is a basic excel spreadsheet that shows exactly how much you can claim each day once you hit max wallet and how long it takes to claim everything, please make a copy and don’t edit the original, thanks.

https://docs.google.com/spreadsheets/d/1Eg8APj6vdThvhFAKqR1QLSoh9f2g70sO8z3fxDXNjj8/edit?pli=1#gid=0

How can you access your principal?

This is an important mechanism about the protocol you must understand before committing funds. Your principal amount (initial token deposit plus any added deposits including compounds), are locked up in the smart contract and cannot be withdrawn in one lump sum. Only your daily reward is available to you each day to either claim(withdraw) or compound. Each participant must carefully consider their personal strategy of how often to compound and when to claim to achieve their own financial goals. The ultimate objective is to compound until you have reached the maximum vault balance of 27,777.78 tokens which entitles you to claim 100,000 $FUR tokens at a daily rate determined by how many times per week you claim.

How do the referrals work?

To receive referral rewards, you must hold Furio NFT’s in your wallet. They can be purchased with $FUR tokens on the NFT page of the d’app. First use the Furswap page to purchase $FUR tokens with USDC and remember you will pay a 10% purchase tax, so budget for that.

There are up to 15 levels in your downline that can earn referral rewards from, determined by how many NFT’s you hold.

Downline NFT’s

The referral rewards are paid out in a round robin system. It works like this:

Someone uses your referral address and makes a deposit into the vault. That first deposit earns you the Initial Round Robin Bonus. This applies to your direct accounts (one level down). Any account that joins using your account address will qualify as a direct referral and you will receive 10% equivalent of their deposit direct into your vault, (after they pay the 10% deposit tax). So, if your direct referral deposits 100 $FUR tokens, they pay 10 tokens deposit tax, and 90 tokens go into their vault. Your initial round robin bonus is 10% of the 90 which is 9 tokens into your vault.

Once you have 5 or more direct referrals, your wallet is now called a Team Wallet and you will only receive 7.5% initial round robin bonus and 2.5% is given back to the new account.

When your referrals compound their daily rewards or make any new deposits, you earn what is known as the Compound Round Robin Bonus. This can be collected from all your down line accounts (people who join through your referrals, up to 15 levels max). You just need to hold the appropriate number of NFT’s in your wallet to be able to get the compound bonus from each level in your downline.

But you don’t get the compound bonus every time your downlines compound. The compound bonus is also distributed in a round robin to your upline (the people above you, who you have joined under). The number of people above you will vary up to the dev wallet which is the original referrer.

Let’s assume there is only one person above you who joined using the dev wallet address. The compound bonus is paid as follows:

The first time your direct referral compounds you earn 5% equivalent of the amount they compounded (after they pay the 5% compound tax).

The second time they compound, the person who you joined under will earn that compound bonus.

The third time they compound, the dev wallet will earn the compound bonus.

The fourth time they compound, no one earns a compound bonus.

And then the fifth time they compound you will earn the compound bonus again and so the cycle repeats.

If your wallet is a team wallet you only get 3.75% and 1.25% goes back to the account that compounded.

Round Robin System

As Defi innovates, each new iteration brings better products — Furio is one of them.

Hopefully you now have a much clearer understanding of exactly how Furio works. Please let me know if I’ve made any math errors, I’ve double, and triple checked the numbers so they should be correct but if you find something wrong, please reach out.

I’ll conclude by saying that after trying almost everything in defi over the last couple years, Furio stands out with its focused approach on building sustainability. I do believe that with the LMS, Furbet Casino, Sports Book, Furbot and everything else the team are adding to the ecosystem, Furio will be around for many years to come.

PS did you know if you hold the clap button down it gives Fifty claps instead of just one ;-)

PSS if you liked the story please push the Follow button ;-)

If you’ve been thinking about getting into Furio but aren’t sure how to get started here are the steps:

You’ll need BNB in your wallet for gas fees. (Usually about 0.001 BNB per transaction). If you don’t already have BNB, you can buy them directly on the Furio app — click the ‘Trade Crypto’ link in the top right corner

Next is to buy Bep20 USDC on Binance Smart Chain for the value of how much you want to invest in Furio. You can also do that directly on the Furio app.

Once you have USDC, use the Furswap page to exchange USDC for $FUR and deposit into your vault here: https://app.furio.io/

If you’re prompted to add a referral address, feel free to use mine and click the “Deposit directly to the Vault” checkbox.

0x00932816D6d04A05E6A38c3fB1c0DC4625CcF8c0

Remember you need to return to the app every day because rewards stop accruing after 24 hours, so you need to compound or claim to continue getting them.

Twitter: @earndailycrypto
Telegram: https://t.me/earndailycrypto

Thanks for reading

Clayton

PLEASE NOTE: Nothing in this article is intended to constitute investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits, or losses you may incur as a result of this information. Readers are encouraged to perform their own due diligence and research or consult a licensed financial advisor or broker before making any and all investment decisions. This content is intended for general informational and educational purposes only. Though the author strives for accuracy, the data contained within the article cannot be relied upon. The author may own cryptocurrencies and tokens discussed in the article. The article may contain affiliate links. DO YOUR OWN RESEARCH!