Saving Accounts Overview
Savings accounts may be opened by publishers of content on Vabble. Publishers receive rewards from users on a daily basis. Publishers may allocate a percentage of rewards received to be deposited into their savings account. Savings accounts are essentially staking percentages of rewards for loans in return for interest but in order to deliver such technology to general people, we are branding staking as savings for familiarity.
How do they work?
A savings account is a smart contract and requires 3 pieces of information from a publisher. Once information required is complete, a smart contract is created. Once per day, the smart contract automatically takes X% of a publishers rewards and deposits them into the publishers savings account. Each reward transferred from a user to a publisher is recorded in the smart contract. The smart contract uses this information to calculate the required percentage to save using the agreed upon percentage at time of creating the smart contract. If the publisher withdraws rewards on a day prior the smart contracts deduction and there is not enough rewards left to meet requirements set forth in the contract, the savings account and smart contract are automatically terminated and destroyed. To prevent this problem, in a publishers wallet dashboard, a breakdown of daily rewards are displayed as such:
- Balance Available for Withdrawal.
- Balance Available for Savings.
- Total Balance.
These balances are based on total rewards received since previous savings deduction OR since savings account creation if withdrawal is taking place on day 1 of opening savings account.
A publisher may withdraw all of total balance (Both available for savings and available for withdrawal). Having a savings account does not “lock” any percentage of daily rewards until the smart contract deducts from balance to savings account.
Finally, a notification will be sent to the publisher prior withdrawal completion reminding them of the potential problem and the outcome of such actions.
Opening Savings Account
Opening a savings account creates a smart contract. Prior to completing the smart contract, a publisher must complete the following information:
- Term of Account.
- Percentage of daily rewards to be saved.
- Interest rate automatically calculated based on 1 & 2.
Publisher agrees to save 10% of rewards for 1 year with interest rate of 7%.
All savings accounts require a selection of term from one of the following options.
- 1 month term
- 3 month term
- 6 month term
- 1 year term
No rewards may be withdrawn while account is in term. Upon term expiry, all savings plus interest may be withdrawn immediately.
AER (Interest Rates)
Interest rates vary for each term:
- 0.3% for 1 month
- 1.5% for 3 months
- 3.2% for 6 months
- 7% for 12 months
Rewards in publishers savings accounts are used to fund loans requested by users. Their interest is paid by either a users advertising rewards or collateral put up by users. (See loans for more information)