# What is ENCTR? Play what you want. Earn rewards. We aim to merge GameFi and DeFi protocols with unique utility. ENCTR (pronounced Encounter) is a decentralized protocol that was created to give true utility and sustainable staking rewards through its innovative revenue-sharing model. With a focus and revenue streams in the GameFi space we consider this a merge between GameFi and DeFi. ## What is the ENCTR token? ENCTR's goal is to create a community centered currency that merges the unique aspects of Decentralized Finance (DeFi) with the gaming industry. We believe Web3 is the future of gaming but we needed to create a logical and sustainable way so that we can fix the Play-To-Earn model to facilitate the transition of Web2 to Web3. ENCTR specifically wants to: * Redefine Play-To-Earn in a sustainable way * Create a community-centric currency that is backed by stablecoins which anyone can utilize and build upon. * Reward both gamers and non-gamers alike due to the aligned incentives through our **Revenue Sharing Model** * Develop an ecosystem of applications that utilize the ENCTR token providing true utility and function. ## Why does Web3 need ENCTR? The current DeFi/GameFi models are not working as people expect them to work. Play-To-Earn is still in it's infancy and most projects that utilize this mechanic are not sustainable. There is backlash and negative sentiment in people outside of the Web3 space with these models. The reason is because of the above mentioned. ENCTR aims to facilitate the bridge between Web2 and Web3 users - specifically gamers. There is a major gap that needs to be crossed and ENCTR will help build that bridge by providing a token and utility that works and is useful. ## How is the ENCTR protocol run? ENCTR is run by the core team (currently 5) members who are fully doxxed as well as members of the ENCTR community. We consider this a DAO-like structure. We chose this structure because we want to live in a space between Web2 and 3. Our aim is to bring users in from Web2 that do not have deep knowledge of crypto and adding in more barriers to entry is not want we want to do. ENCTR's day-to-day decisions will be conducted by the core team and any MAJOR changes will always require a DAO vote to execute. # Modules We call all features that ENCTR creates as Modules as a way to segment and define them. ## What are ENCTR Modules? All the features that the core team builds out for ENCTR are called Modules. Whenever we talk about new features we use this term. It is a way to showcase that we build segments of a mega-application at a time with all of the modules living within 1 application - The ENCTR App. ## How do they work? The modules that the ENCTR core team creates provide utility to the token itself. Every aspect of ENCTR builds upon itself and every module that is created either utilizes the ENCTR token in some way or provides a revenue stream back to the ENCTR ecosystem. **Modules = Features** # Battlescape Our 1st Module **Battlescape** is our genesis module inside ENCTR App™, allowing users to place predictions on their favorite professional tournaments and matches. ### **How does Battlescape differ from other wagering sites and applications?** ![](/files/LHxCe7Uuk6yeG7y7jUoA) When utilizing Battlescape, you'll notice that the user interface is minimalist and clean. Navigation is intuitive. This is a purposeful methodology to not just Battlescape, but all of our modules in development. In general, betting sites are a bit too complicated, and we noticed a general negative UX trend in this particular space.\ \ Inside Battlescape, you are actually wagering with a pool of money. We call it "peer-to-peer", or more specifically, "pool-based betting". Wagering typically follows a house structure, where the organization or establishment facilitates the bets placed. Our Battlescape smart contract ultimately carries out the entire wagering process. The module provides the means of the wager pool, as well as verifying the outcome of the tournament or match. {% hint style="info" %} By utilizing the game's API, Battlescape determines the winner of the match and feeds it back to the smart contract. This ensures full automation of winner selection to 100% accuracy. {% endhint %} Betting doesn't need to be complicated. We don't create ratios for rewards. 1. Find a match 2. Place your wager 3. Claim rewards or view the outcome after the match finishes. The structure of the module (at launch) will be setup in a way that allows us to build and implement more features on a case-by-case basis. A simple notification system and help guide will be built into the module to assist in the overall user experience. We definitely want to explore ways of integrating games built for blockchains. Say a blockchain game comes out with a competitive structure - maybe they want to expose that game to a wider audience. This is where the Battlescape structure truly shines. By making their game "Battlescape Compatible", we can enable wagering for their game, ultimately creating an indirect marketing exposure to the title. Further Battlescape updates will likely revolve around expanding the supported game library, and enabling users to customize their profile with unique badges or NFT rewards. {% hint style="info" %} It's really that easy. One of the biggest benefits in building wager functionalities for Web3 is the complete freedom in how we carry out reward and interaction functionalities. You don't need to connect your bank. You don't need to verify your identity. Your transactions live on the smart contract and stay on the smart contract. {% endhint %} If a user created a wager and then deemed a winner by the Battlescape contract, the user can come back and collect their rewards equal to their initial wager portion, and the amount of users who predicted the same outcome. # Arsenal ![](/files/dukJ7Sdn12rZz0Jz7iJD) ### **EARN IN-GAME** The first of its kind. Connect your game logins and complete in-game achievements to earn ENCTR and rank up your arsenal track. This is play & earn on another level. MORE INFO SOON # Legions TBD ![](/files/HgaYsYBpvBVff9DK3HzG) Form a decentralized, competitive roster of players or friends and compete within Encountr Official tournaments and bracket systems. Ghost ranks, leaderboards, and much more. # Staking ## Introduction Unlike many DeFi tokens, **ENCTR** is inherently inflationary. This means that as time goes on, the Protocol will increase the supply of **ENCTR** that can be held by our community members and used as part of our future modules. This is in contrast to tokens that attempt to deflate the supply over time in hopes of increasing the value of each token. With a deflationary token, the main strategy for value accrual is passively hold onto as many tokens as you can and wait until supply is scarce before selling. This has the potential to create a problem of misaligned incentives. All of the tokens must be minted at once and distributed fairly quickly, resulting in a small number of Users who own such a large amount of the token that they can dominate the market and force large price movements unilaterally. These Users are called Whales and they’re not particularly helpful for community driven projects like **ENCTR**. In contrast, inflationary tokens like **ENCTR** will slowly grow their supply by a mechanism called rebasing. A rebase is a programmed change in token supply. This allows many different Users to have a fair shot at participating in the Protocol. However, there is a problem: if you hold onto 1 **ENCTR**, every time the supply increases you are theoretically holding less and less value. For instance, if the total number of existing **ENCTR** was 4 and you hold 1 **ENCTR** you would own 25% of the total supply at the time. After a particular rebase occurs, there might now be 5 **ENCTR** while you still hold only 1 **ENCTR**. You would now own only 20% of the total supply and not 25%. Of course, these numbers have been chosen for a simple example but reflect a potential problem when trying to acquire value through an inflationary token. **‍Fortunately, the solution to this problem is Staking.** Staking is the main way that value and rewards are generated for the ENCTR ecosystem. Users can stake their ENCTR tokens on the app to earn rebase rewards. These rewards are then minted every 8 hours as long as there is 1 DAI in the Treasury to back it up. This makes sure that all the rewards that are given out are backed by actual money. {% hint style="info" %} Minting is the concept of "creating" or generating a token. {% endhint %} When you stake your ENCTR, this means that you "lock" it away and in turn, receive an equal amount of sENCTR. Your sENCTR balance rebases at the end of each 8 hour period. {% hint style="info" %} sENCTR is staked ENCTR. When you stake ENCTR, it grows with every rebase! {% endhint %} You are allowed to stake/unstake your ENCTR tokens at any time. If you unstake your ENCTR, you will no longer receive any rewards. ## Why should I stake ENCTR? To be part of the ENCTR community and utilize any of the ENCTR modules, you will need to stake your ENCTR tokens. Staking your tokens gives you an APY% on your tokens so that it scales with the overall growth of the ecosystem. ### Staking Rewards The amount of rewards holders receive is based on the reward rate (built into the protocol). The reward rate can fluctuate and change based on a couple factors: 1. Amount of Revenue the protocol is generating (the more money ENCTR generates through its modules, the more rewards) 2. The amount of people staking (the more people stake the reward decreases) ENCTR displays the reward yield as an APY percentage. Since rebase rewards are distributed every 8 hours, we can consider that an APY interest on your tokens. {% hint style="info" %} Staking rewards can fluctuate. They are NOT fixed. {% endhint %} #### Mathematics behind Staking When a User stakes their **ENCTR**, they trade it with the Protocol for an equal amount of **sENCTR**. The **ENCTR** that a User trades is considered to be “locked” until the **sENCTR** is unstaked by trading the **sENCTR** for an equal amount of **ENCTR**. All holders of **sENCTR** at the time of rebase will be given a share of a total rebase reward. This reward is based on the number of circulating **ENCTR** tokens, the number of staked **ENCTR** tokens, and a reward rate that is set by the ENCTR team (see the equation below). Rewards will only be generated when a rebase occurs, which can only occur when there exists at least one stablecoin in the treasury to create a new **ENCTR** token. ![](/files/SwKG4yGBNf9WUSXPtRun) Because rewards are generated approximately every 8 hours, the estimated annual percentage yield (APY) can be calculated as follows: ![](/files/Ty9rvj8gecjWKbEC4oIF) This is an estimated APY because it assumes that the reward yield will remain constant for 1095 rebases (on every 8 hours for 365 days). # Bonding TL;DR Bonds are mutual agreements between a user and a protocol to easily acquire the funds it needs for growth. For ENCTR Bonds, you exchange stable coins or liquidity tokens for gENCTR in return. **Bonds are smart contract enforced agreements between a User and a Protocol that allow the Protocol to easily acquire the assets that it needs for growth and stability.** In exchange for assets like stablecoins and liquidity pool (LP) tokens, the user will receive gENCTR tokens for a discount after a short maturity period (usually a few days). Issuing Bonds benefits the entire ecosystem in two main ways depending on the type of Bond that is issued: 1. Purchasing a stablecoin bond (e.g. **DAI**) allows the Protocol to grow the size of its Treasury which is used to back the **ENCTR** tokens that are issued by the protocol. The smart contracts ensure that for every **ENCTR** token that exists, there is at least one stablecoin in the Treasury. Therefore, the price of **ENCTR** has a theoretical floor of $1 and as the size of the Treasury increases, the more staked **ENCTR** we can reward with high APYs (more on staking in a future post).\ ‍ 2. Purchasing a LP token bond (e.g **ENCTR-DAI**) allows the Protocol to control its own liquidity and ensure that the **ENCTR** DEX markets remain liquid enough so that anyone who wants to buy and sell can do so easily and without fears of slippage. Additionally, having the Protocol itself hold its own LP tokens prevents our Users from having to take on the risk of [Impermanent Loss](https://blog.bancor.network/beginners-guide-to-getting-rekt-by-impermanent-loss-7c9510cb2f22) themselves. Finally, the LP fees are accumulated by the Treasury which can make use of them to further grow the Protocol. Before you buy a Bond, there are a few small things you need to know about potential downsides. Bonds involve risk like any other DeFi interaction. While the Bond is maturing, you are temporarily illiquid and have neither the deposited stablecoins, nor **s/gENCTR** yet. This exposes you to the risk of not being able to sell **s/gENCTR** during that time if the price falls below a comfortable threshold for you. Fortunately, because you are purchasing your **sENCTR** or **gENCTR** through a Bond, you will be receiving a discount compared to a DEX. This discount will be clearly indicated on the Bond purchase page. {% hint style="info" %} Please note that it is possible for this discount to become negative if there is high demand. In that case, it is better to get your gENCTR through a DEX and wait for a positive discount. {% endhint %} Now that you know more about what Bonds are, hopefully you are excited to purchase one and help us grow the Protocol! Purchasing one is a simple process and all you need is some stablecoin or LP tokens to start. Every few days, the ENCTR team will create a new bond market that will be open for several days until we manually close the market or enough Bonds have been sold for that market. There may be multiple bond markets open at once and we encourage you to check back often to see which markets are open. Below is a screenshot of the Bond market page in our application. ![](/files/x19of4ww18IepimpK2nj) Purchasing a Bond is as simple as connecting your wallet with our application and clicking “Purchase”. Enter the amount that you would like to spend and select “Confirm”. Once you have purchased your Bonds, you’ll be able to see a list of your maturing or unclaimed Bonds. If your Bond is fully vested, you will need to click “Claim” before the funds appear in your wallet. As seen above, you have the option to claim your bond as either sENCTR or gENCTR. # Wrapping and the 3 Tokens ## **What is Token Wrapping?** You may have seen tokens in the space before with a “w” in the front of the name before such as wETH. This “w” stands for wrapped. A wrapped token is a version of a crypto currency that is “pegged” or reflects the value of the asset it represents. So for instance, with wETH or wrapped ether, it reflects the same price as ETH but the difference being that it usually represents a crypto token that doesn’t natively live on the blockchain that it was issued in. Think of wrapping a token as being able to encapsulate all of a token’s value into another token. You may be wondering what this is good for or what is the point? Wrapped tokens provide a user the ability to use tokens between different blockchains, for example, wBTC on the Ethereum blockchain. This means that you can bring over your BTC assets and use them on Ethereum. For a regular user, you don’t have to worry about the inner workings of wrapping. You can just trade the wrapped version the same way you would trade the regular version. ## The 3 tokens of ENCTR ![](/files/1QEwGm341gY1lwCUDxNu) **ENCTR** = Regular ENCTR **sENCTR** = Staked ENCTR **gENCTR** = Wrapped AND Staked ENCTR ### Why is it called gENCTR? gENCTR stands for Gaming ENCTR but technically speaking, it is both Wrapped and Staked ENCTR. The reason we called it Gaming ENCTR is because its use is important in the various modules we are creating - all surrounding the Play & Earn space. ### **How does gENCTR work in the ecosystem and what does it mean for me?** When you stake ENCTR, you can stake ENCTR to either sENCTR or gENCTR. If you read our previous blog post on sENCTR, you know what staking is. When you stake ENCTR you can choose to receive sENCTR or gENCTR. * sENCTR increases your token supply with every rebase event * gENCTR does not increase your token supply with every rebase event but increases the value within it every rebase event.‍ Let’s take this example: You have 100 ENCTR and you go to the ENCTR app to see that with every rebase event (or compounding event) you will get 1 ENCTR if you stake it. So you then go and stake your 100 ENCTR to sENCTR. You now have 100 sENCTR that is generating a % APY compounding every 8 hours (a rebase event). Let’s say 8 hours have passed and a rebase occurred. Now you have 101 sENCTR. When you stake to sENCTR, your balance is always increasing every rebase event. Now let’s take the same example but using gENCTR. Remember, gENCTR is staked AND wrapped ENCTR. This means that on every rebase you are still getting the rebase rewards, but your token supply is not increasing. Going back to the example: you have 100 ENCTR. You stake to gENCTR and now have 100 gENCTR. Let’s say 8 hours pass and a rebase event occurred. You will still have 100 gENCTR but in the background, gENCTR knows that a rebase event occurred but you will not see this value until you “un-wrap” your gENCTR back to sENCTR or back to ENCTR. ### **Why is this good?** gENCTR allows you to now trade your ENCTR across different blockchains (first one will be Polygon) and still get all of your rebase rewards. Think of gENCTR as a treasure chest of coins and each coin in the treasure chest is 1 ENCTR. Every rebase event creates a new coin in that chest. You can trade this chest to someone else and it continues to grow coins inside of it. ### **Tax Purposes** We are not tax advisors and this is not tax advice. In the US for instance, every “rebase” is a taxable event. Holding your staked ENCTR to gENCTR allows you to choose when your taxable event occurs! ## **TL;DR** For most users, gENCTR is the token you want to get when staking ENCTR. It allows you to trade across different blockchains and move assets to and from Polygon for use in our modules. With every rebase event, the value in gENCTR increases rather than its token supply. You can see this value based on how many rebase events occurred and can “realize” the rebase profits by unstaking or unwrapping. ### **High Points** * gENCTR is the wrapped AND staked version of ENCTR * It allows you to trade across different blockchains and move assets to and from Polygon once our modules are released. * With every rebase event, the value of gENCTR increases rather than the token supply. * The value of gENCTR is based on how many rebase events have occurred, and you can “realize” the profits by either selling gENCTR or unwrapping/unstaking. # Treasury The ENCTR Treasury is a core function of the protocol. It represents all of the assets that are owned. These assets provide the backing of the token and allow staking rewards to be minted as well as Play-To-Earn rewards distributed. ### Assets The type of assets that the treasury owns are: 1. Stablecoins such as DAI, USDC, USDT 2. Liquidity Pool Tokens ### Protocol Owned Liquidity ENCTR owns its own liquidity. This is a core function of the protocol. The reason we do this is so that we can bootstrap the entire process ourselves without relying on other methods. Without having to rely on other methods or external liquidity providers, ENCTR can make sure there is a liquid market and earn trading fees as a revenue stream for the protocol itself. # Revenue Sharing Model One area of uniqueness of the ENCTR protocol, and one in how we merge DeFi and GameFi together is through our Revenue Sharing process. ![](/files/q6BEF0LHQB0lx0Gzv9z2) **Bonds** Buying a Bond gives a user a discount to get ENCTR and adds stablecoin to the treasury. **Battlescape** % Fee from each betting pool **Arsenal** Purchasing a Battlepass (by purchasing it with ENCTR and staking it for a locked period of time) **Legions** Guild and Tournament Fees **Defi Protocols** Yield Farming Investing ### **Why is this different from other protocols?** *‍*You are an owner of the protocol so you should earn revenue from what it generates. Our revenue will back the rewards. All the rewards we give out is real money that we got from people using the ENCTR ecosystem. No more money printed out of thin air! ### **‍*****Why should I buy ENCTR?*** *‍*You get to earn rewards that the ecosystem generates as well as use all of our products/modules. Double WIN! # Dashboard This is where the experience with ENCTR starts. The dashboard view is where you will get a birds-eye view of any news or important quick info that a user would need to see. ![](/files/dBDZmLgSuSprYVIP8t8y) # Finance The Finance section is considered a module by our accords. This is where you will find all the relevant info regarding the ENCTR token itself. You can find all of the Finance sections on the drawer menu to the left-hand side of the screen.
# Bonding Bonds allow a user to purchase ENCTR at a discounted rate. There are two types of bonds, **Single-Sided Bonds** and **Liquidity Pool Bonds.** For the first one, you purchase a Bond with just a single stablecoin, for instance DAI. For the latter, you purchase a Liquidity Pool token (LP) from a decentralized exchange (DEX) and then offer that up for ENCTR tokens. When you purchase a bond, they mature over a given rate of time, through a vesting schedule. This means until it is fully matured, you cannot do anything with your ENCTR. Your bond will automatically begin vesting as soon as you purchase it. From there, it will be shown in the **My Bonds** view. To purchase a bond, open the menu drawer and click on the Bond button. From here you should be presented with a new view that displays **My Bonds** and **Available Bonds** ![View of the Bonding section of the app.](/files/AXsc3PHkz3vijwVwIvRr) ### My Bonds This is a section that displays all of the bonds that you currently own. Some bonds can still be vesting, and others can be fully vested. Once the bond is fully vested, you can choose to convert it to either sENCTR or gENCTR. ![](/files/zWA1ny1LYixxLRDxTG1J) ### Available Bonds This is the section where you can view all of the available bonds to purchase. {% hint style="info" %} The ENCTR team will create bonds as needed. So be sure to check frequently to see if new bonds are available! {% endhint %} ![](/files/9NugWZHX9rAZBXCXM1Co) ## Purchasing a Bond When you select a particular bond that you want, you may click on the Purchase button. Once you do that, you will be presented with a new screen. Here you can view important info such as: * The type of Bond * The Bond Price vs the Market Price (the price of ENCTR on a DEX) * The discount you get for purchasing the bond * Your balance in the token required for purchase * The amount and maximum you can get * How much you will receive and the vesting term (how long it takes for the bond to mature) ![](/files/4sXrjC6JYLxLMOqZDL6m) # Staking Staking your ENCTR allows you to earn rebase rewards through auto-compounding. By staking your ENCTR, you receive sENCTR (staked ENCTR) in return at a 1:1 ratio. After that, your sENCTR balance will increase automatically on every epoch based on the current APY. ### Stake on ENCTR App To get to the staking screen, enter the application and click on the Stake button on the left-hand side of the drawer menu. You should then be presented with this screen. ![](/files/YFxYReNkdWrnfvBmIp8Q) Here you can see important info such as: * Metrics * Choose either Stake or Unstake your tokens * Your ENCTR token balances * An input area to add how much you want to Stake/Unstake * Your choice to receive as sENCTR or gENCTR. {% hint style="info" %} If you don't already have ENCTR, go to the [Bonding](/the-basics/bonding)section first to get some ENCTR {% endhint %} Now that you have ENCTR in your wallet, you can Stake or Unstake your tokens. 1. Choose either Stake or Unstake 2. Verify you have the proper balances 3. Enter in an amount 4. Select sENCTR or gENCTR 5. Confirm # Wrapping {% hint style="info" %} If you haven't already learned about what wrapping is, please first read [Wrapping and the 3 Tokens](/the-basics/wrapping-and-the-3-tokens) {% endhint %} You can wrap your tokens from sENCTR to gENCTR or vise-versa. To access this portion of the app, find the Wrap button on the left hand side of the drawer menu to the left of the app. You should then be presented with this screen. ![](/files/pwHOxsHOTkj8J3OqAjwo) From here, you can see information such as: * sENCTR price and personal balance * gENCTR price and personal balance You can now choose to **WRAP** (sENCTR to gENCTR) or **UNWRAP** (gENCTR to sENCTR) If you choose **WRAP** ![](/files/wzmXi6O8QkAspx8f8bzN) You will be able to enter in the amount you which to convert your tokens to. Similarly, you can do so with the **UNWRAP** option. ![](/files/CBQDcO2yJ8RqR8aolKAM) # Battlescape **TDB**