Types of Favor and Trading Favor

Types of Favor & Liquidity Pools

At launch, BetterBank will offer two primary Favor types:

• USDTF – Soft Pegged and liquidity-paired with USDT.

• ETHF – Soft Pegged and liquidity-paired with ETH.

• Future Favor Tokens– Additional Favor types will be introduced as liquidity deepens and the protocol's ecosystem grows.

Favor's liquidity pool structure ensures that it follows the price movements of its paired asset, resulting in higher price stability versus that asset, while offering users deep liquidity for borrowing and trading.

Trading & Market Value

Favor tokens can be bought and sold through their respective liquidity pools (LPs).

• Buying Favor: Users who purchase Favor receive a 44% bonus in Esteem ($ESTEEM) based on Esteem's current price, further rewarding long-term participation.

  • Buying Favor over the LP should only be done if there are assets available to borrow immediately after, because the +44% Esteem bonus is designed to translate in an 8% discount on Esteem versus minting Esteem in that situation, while in case of no borrowable assets it's a straight loss.

  • If borrowing is unavailable, then minting Esteem directly is the better choice, especially since that action by definition makes assets available for borrowing. This is because the treasury stakes a large portion of the income that the protocol receives from mints.

• Selling Favor: A 50% sell tax applies, with proceeds going to the BetterBank Treasury. Future expansions to the ecosystem may introduce Favor burn mechanisms to further reduce supply and strengthen price stability.