Buybacks

SFI stakers, voters, and holders gain an additional benefit for supporting the protocol—SFI market buybacks. This process involves purchasing SFI tokens from the market and reallocating them to the protocol treasury, strengthening the protocol's long-term sustainability while also driving price appreciation by increasing demand and reducing circulating supply.

10% of USFI borrowing interest will be accumulated and allocated for SFI buybacks. It will be done in the following manner to ensure less frontrunning:

• Buybacks will be executed in small batches, making frontrunning unprofitable due to swap fees.

• Randomized buyback timing will prevent predictable patterns that traders could exploit.

• TWAP (Time-Weighted Average Price) execution will be used to acquire SFI gradually, ensuring a fair price impact.