Company

Peccala Tokens - what they are and how they work

October 7, 2022
3 min read

Peccala Token's use

Peccala Tokens are used to represent the value of our customer’s investments with Peccala.

This makes our Tokenomics extremely straightforward, since each of our investment strategies has its own Token class: 

  • PECH for our High Risk Strategy
  • PECM for our Medium Risk strategy
  • PECL for our Low Risk strategy, which will be launching in 2023

Our customers have complete freedom to invest in multiple of our strategies simultaneously, so they can hold several different Peccala Token classes at the same time.

How Peccala Tokens work

Unlike other types of crypto, each individual Peccala Token is only ever held by one customer:

  1. To invest in one of Peccala’s strategies, the customer buys the relevant Peccala Token at their current value in USDT through our platform.
  1. The requisite number of Tokens are minted for that user by our smart contracts. These Tokens are held in their Peccala account to represent their investment in Peccala, and cannot be transferred out of our platform.
  1. The USDT used to buy the Peccala Tokens are deposited immediately into our trading wallets at large exchanges, where they are managed by our trading engine alongside other customer’s investments.
  2. When the customer wants to withdraw funds from Peccala, they redeem their Peccala Tokens for their current value through their account, at which point those Tokens are burned and USDT are returned to the user from the trading wallets.

This unique mechanism allows each customer’s investment to be recorded immutably on-chain. It also helps ensure the overall stability of the token and allows us to meet our anti money laundering obligations, by preventing a secondary market for Peccala Tokens emerging.

Token's price calculation

The price of Peccala Tokens is updated every minute based on the current balance of the exchange-based futures hot wallets where funds are invested. 

The calculation is as follows:

This simple structure means that all customers invested in the same strategy enjoy exactly the same returns once invested - the only difference in their personal PnL being the token price at the time they invested.

Token distribution

Peccala Tokens are in a constant cycle of minting and burning triggered by customer’s investments and redemptions. 

The only Peccala Tokens in existence are those which represent each user’s portion of the trading wallets - so there is no maximum supply, and no team / founder pool of Tokens. 

Transparent fees

Peccala customers are charged three types of fee:

1. A 15% performance fee on profits generated

  • This is taken every 6 months that the user stays invested, and at the time they make a withdrawal since the last mark.
  • We deduct this fee by burning the relevant number of Peccala Tokens from the user’s account, and directing the funds to Peccala’s wallets.

2. A redemption fee of 0.5%

  • This fee is designed to prevent scalping of Peccala Tokens, so it doesn’t actually go to Peccala.
  • Instead, the 0.5% fee remains in the trading wallets, thereby increasing the NAV and helping users who stay invested.

3. A gas fee per transaction, currently fixed at 1 USDT

  • Users pay this fee on all transactions, which covers blockchain fees incurred. 
  • It is deducted automatically when a transaction is made.

How do I buy Peccala Tokens?

Because Peccala Tokens represent a user’s portion of a particular trading strategy, they can only be bought and redeemed in one place - the Peccala platform!

We are currently in closed beta, but you can join the waitlist at https://peccala.com/waitlist and we’ll send you an invite when we’re ready to have you onboard.