Yield Farming and Rewards Multiplier
Staking/Liquidity mining in VoltSwap is designed to encourage long-term behavior. The pool calculates a user's reward based on ownership shares of the current reward pool called StakingUnits, which is defined as the number of staked seconds*staked amount.
There are two portions of rewards:
1. The minimum_reward is 10% of the accumulated emission. It is divided by stakingUnits
2. The bonus_reward is minimum_reward*(reward multiplier - 1)
The multiplier gradually goes up from 1x to 10x over 70 days. The longer you staked the higher weight your share in the system. After staking 70 days, the reward multiplier will stay at 10x. A user who has staked for more than 70 days will earn 10x rewards compared to someone who stake and unstake in the same day.
Imagine there are two users in the system, Alice and Bob . Alice has staked 10 tokens for 1 day(1x multiplier), Bob has staked 5 tokens for 10 days(2x multiplier). The total emission is 100 tokens on the 10th day. They both unstake on the 10th day.
Alice_StakingUnits = 10 tokens * 1 days = 10
Bob_StakingUnits = 5 * tokens * 10 days = 50
Total_token_day = 10 + 50 = 60
minmum_reward_Alice=10 tokes * 10/60 = 1.67 tokens
minmum_reward_Bob=10 tokes * 50/60 = 8.33 tokens
bonus_reward_Alice = 1.67 * (1-1) = 0
bonus_reward_Bob = 8.33 * (2-1) = 8.33
reward_Alice = 1.67
reward_Bob = 8.33 + 8.33 = 16.66
Unvested tokens:
100 - 1.67 - 16.66 = 81.67
There are several observations:
  1. 1.
    If you unstake early, you are leaving rewards on the table. In the above case, 81.67 tokens are left in the pool for the rest of the stakers to share. You will have to stake continously for 70 days to get the full potential of the rewards
  2. 2.
    Each stake and its multiplier is calculated separately. The staking UI only displays the last stake's multiplier.
  3. 3.
    The Current Reward in the staking app calculates your rewards based on your current ownership shares of the unclaimed rewards in the pool. At the beginning of the staking pool, there might be some fluctuations in claimable rewards if there are big changes in the staked value.
  4. 4.
    The multiplier goes up every second over the 70 days
  5. 5.
    The current duration of the staking program is 90 days. Before the end of the 90 days, there will be newly recommended staking programs and the staking pools will likely be refilled. You do not have to withdraw the stake and will keep your multiplier when the pool refills.
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