# The Whirlpool

## The Whirlpool:

![](https://1588992548-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MkDmIVZnuU_b35tMF_O%2Fsync%2F44f4bd68fbe870c7c1682659ffce4a663606d4cc.png?generation=1632335931712967\&alt=media)

### Overview

Surf Finance is a D.A.O. [(Decentralized Autonomous Organization)](https://www.investopedia.com/tech/what-dao/) governed crypto-currency hedge fund founded around the mission of building an application suite and A.U.M. sheet to provide project participants with cash-flow. The Whirlpool is a contract on ETH main-net which distributes dAPP income and profits realized from SURF D.A.O. assets to project participants who've staked SURF/ETH Uni V2 LP ([Uniswap Liquidity Provider](https://uniswap.org/docs/v2/core-concepts/pools)) tokens within it. The Whirlpool also serves to dissuade predatory, extractive, or short-term market participants from earning the fruit of the communities labor, as there is a D.A.O. governed exit fee on LP tokens being withdrawn from the Whirlpool.

TL;DR: The whirlpool distributes SURF dApp fees and SURF D.A.O. trading profits to users who stake SURF/ETH Uniswap LP tokens into it.

### Whirlpool Cashflow Break-out

The Whirlpool distributed rewards to stakers as well as acting as a funding vehicle for the hedge fund (i.e., A.U.M.) aspect of the SURF ecosystem.

* **Rewards to Whirlpool stakers**
  * **Token Payouts:** ETH, SURF, or other token payouts from realized trading profits and yield bearing assets.
  * **SURF Token Transfer Fee:** Whenever SURF is transferred, 1% of the transfer amount gets sent to the Whirlpool as claimable rewards to all Whirlpool stakers. 
    * *Notes: 1) This is only applicable for transfers outside of the Whirlpool contract; and* 
    * *2) This only applies to SURF tokens on the Ethereum network.*
  * **Unstaking:** There is no fee to stake ETH-SURF LP tokens in the Whirlpool, however, there is a 25% fee to unstake them. Of the unstaking fee, 20% *(5% of the unstaked amount)* gets swapped for SURF and rewarded to all other Whirlpool stakers. The other 80% *(20% of the unstaked amount)* gets sent to the SURF Token contract [here](https://etherscan.io/address/0xea319e87cf06203dae107dd8e5672175e3ee976c) as community locked liquidity. 
    * *Note: Funds from community locked liquidity get deployed to the SURF ecosystem as A.U.M.*
* **SURF Hedge Fund (A.U.M)**
  * A.U.M. is held by the SURF Deployer wallet [here](https://etherscan.io/address/0xa81eac3009bd6e6cce36602d6851fda789ddc3bb). This can include other tokens and NFTs, was well as staked positions in other contracts (which would not necessarily be listed in the linked Deployer wallet address).
  * The deployer wallet also holds tokens and the majority of liquidity on alternate chains, which can be viewed as linked for [BSC](https://bscscan.com/address/0xA81eac3009bD6E6cCE36602d6851fDA789dDC3BB), [xDAI](https://blockscout.com/xdai/mainnet/address/0xA81eac3009bD6E6cCE36602d6851fDA789dDC3BB/tokens), and [Polygon](https://polygonscan.com/address/0xa81eac3009bd6e6cce36602d6851fda789ddc3bb). 
  * Other additions to SURF A.U.M. could include, but are not limited to: 
    * ETH or SURF payouts from in-house SURF dApps and partnered application's dev fees
    * Air drops for Deployer wallet activity.

### Directory

* [**Whirlpool Site**](https://eth.surf.finance/whirlpool)
* [**Whirlpool Smart Contract**](https://etherscan.io/address/0x999b1e6EDCb412b59ECF0C5e14c20948Ce81F40b)