# DRIP Reservoir

The RESERVOIR protocol, which is part of the DripNetwork, allows you to earn rewards in BNB while supporting the liquidity of the DRIP token.

# How does it work?

Participants, join by depositing BNB BEP 20 tokens in the Reservoir to provide liquidity to the DRIP/BNB Fountain DEX.

The contract automatically converts the deposited BNB into DROPS LP tokens, which represent your share in the contract.

Liquidity Pool tokens, or LP, are allocated to users who provide funds in liquidity pools.

In simple terms, users deposit a pair of assets in a liquidity pool so traders can swap these two assets.

The Reservoir protocol allows redeeming your funds at any time by removing liquidity.

The rewards are variable and are paid out in BNB based on the taxes paid by the participants, depending on the stake size and daily trading fees from transactions.

For more information, see the charts section:

🛡️ Advanced Live Charts Reservoir
/tools/drip/reservoir-charts/

# Supporting DRIP

When BNB is deposited, the smart contract Reservoir interacts with the Fountain/Swap by using 50% of the after-tax value to buy DRIP.

This DRIP and the remaining BNB are then made available to the liquidity pool for trading.

The provision of liquidity leads to an increase in price and a higher degree of decentralization and stability of the DRIP token.

# Drip Reservoir Tax Explained

ACTION TAX
Deposit BNB > DROP 10%
Withdraw DROP > BNB 10%
Compound BNB 0%
Claim BNB 0%

The 10% tax can be broken down as follows:

  • 5% sent to dividend pool
  • 3% locked in the Fountain DEX from liquidity provider withdrawals
  • 2% is distributed instantly to all Reservoir participants

# Rewards

Rewards are generated through the 1% of swap transaction fees (for both buys and sells) from the Fountain DEX and 50% of the taxes applied on Reservoir deposits and withdrawals.

The rewards generated are distributed as follow:

  • Liquidity providers in the reservoir earn a daily distribution of 2% from the collected DROP LP by the dividend pool, which is automatically converted in BNB, proportional to their stake in the pool.

  • Upon deposit, the 2% of the total amount of DROP LP contributed by players is instantly redistributed to all participants, proportionally based on their stake percentage.

How to: Enter the DRIP RESERVOIR
/en/how-to/drip/drip-reservoir/

# Possible actions

Buy and Deposit: this section allows BNB to be transferred from the wallet to the reservoir contract by converting them to the DROP LP token, there is no minimum deposit. A fee of 10% will be charged.

Withdraw: with this action you can withdraw the entire amount or part of the DROP LPs. A fee of 10% will be charged.


Compound: by executing COMPOUND you put the daily fees paid in BNB back into the deposit by buying LP DROP and thus benefit from compound interest. No fees are charged.

Claim: the CLAIM action allows BNB to withdraw dividends. No fees are charged.


# User Interface

  • Rewards= total BNB available
  • Total DROPS= total DROP LP held in the deposit
  • Stake= percentage of share owned
  • Compounds= total number of compounds carried out
  • Total withdrawn= total BNB withdrawn
  • Compounded Total= total of BNB compounded in the deposit

Want to know more? Have a specific question?

RESERVOIR FAQs
/en/drip/faq/#drip-reservoir-faqs