Lab Notebook

Prof. Ricksworth's Finance Lab is a tax-driven yield protocol built on Solana using Meteora DEX for trading. The protocol features three tokens with dynamic tax mechanics that create unique arbitrage opportunities and generate real yield for PROFIT token holders.

Every trade on CRIME and FRAUD tokens generates a 10% transfer tax. The protocol harvests these fees, converts them to SOL, and distributes them — 71% to PROFIT holders, 24% to buy-and-burn (Carnage), and 5% to the treasury.

CRIME and FRAUD are tradeable on Meteora DEX with SOL pairs. PROFIT is the yield-bearing token — holding it earns you SOL rewards from trading fees. PROFIT can also be traded on Meteora and obtained through the conversion system.

The protocol operates in 15-minute epochs. At the start of each epoch, a new random effective buy tax rate is selected independently for CRIME and FRAUD. For example, CRIME might have a 3% effective rate while FRAUD has 8%.

The on-chain transfer fee is always 10% — the effective rate is achieved through a refund mechanism (see below). This creates constantly shifting incentives and arbitrage opportunities between the two tokens.

Buy Tax: When you buy CRIME or FRAUD on Meteora, 10% is withheld as transfer fee. The protocol then refunds a portion back to you based on the current epoch's effective rate. If the effective rate is 4%, you get 6% refunded — your actual cost is only 4%.

Sell Tax: Selling always costs the full 10%. No refunds on sells. The sell-side fees go entirely to the protocol for distribution.

Here's how the refund works step by step:

All collected fees (after refunds) are swapped to SOL and distributed:

• 71% Staker Rewards — SOL airdropped to all PROFIT token holders proportional to their balance. Distributed every 5 minutes (5% of reward pool per cycle).
• 24% Carnage Fund — Accumulates SOL until threshold is reached, then executes buy-and-burn events.
• 5% Treasury — Protocol operations and development.

Convert between CRIME/FRAUD and PROFIT at a fixed rate of 100:1. Conversions are completely tax-free — the protocol neutralizes the 10% transfer fee using a self-replenish mechanism.

Forward Conversion (CRIME/FRAUD → PROFIT):

Send CRIME or FRAUD to the conversion vault. The bot detects your deposit, recovers the withheld 10% tax (self-replenish), and sends you PROFIT based on the full amount you sent. 100 CRIME sent = 1 PROFIT received.

Reverse Conversion (PROFIT → CRIME/FRAUD):

Send PROFIT to the conversion vault. The bot sends you CRIME or FRAUD, then recovers the withheld tax back into your account. You receive the full amount — 1 PROFIT = 100 CRIME/FRAUD.

Two separate vaults exist — one for CRIME↔PROFIT and one for FRAUD↔PROFIT. This enables tax-free cross-token conversion: CRIME → PROFIT → FRAUD (or vice versa).

Hold PROFIT tokens in your wallet to automatically earn SOL rewards. No staking contract needed — the protocol snapshots all PROFIT holders every 5 minutes and airdrops SOL proportionally.

Each cycle distributes 5% of the accumulated reward pool. This drip model ensures consistent payouts — during high trading volume, larger payouts; during quiet periods, smaller but steady rewards. The pool never fully depletes.

Note: Protocol wallets (conversion vaults, treasury, etc.) and DEX pool addresses are excluded from rewards. Only real user wallets receive airdrops.

24% of all collected fees flow to the Carnage Fund. When the fund reaches the threshold, a Carnage Event triggers automatically:

Carnage creates permanent deflationary pressure on both tokens. More trading volume → more fees → more frequent carnage → more tokens burned → reduced supply.

The dynamic tax system creates multiple arbitrage opportunities: