Staking

VTX tokens may be staked at any time to earn yield. Tokens must be staked for the duration of the period selected at staking time in order to earn. They can be unstaked at any point, but doing so will forfeit all yield.

Additionally, keeping a position staked beyond its maturation period earns no additional yield.

Staking Formula

The APY for a staking position is calculated at the time of staking, and is guaranteed for the duration of the period selected. Valid staking periods are 1, 3, 6, and 12 months.

\text{APY} = \left(\dfrac{Yield}{StakeAmount}\right) \left(\dfrac{12 \text{ months}}{StakeTime} \right)

where

$Yield = \left((1 - b) + b \cdot Velocity\right) \cdot Premium \cdot \left(\dfrac{Stake Amount}{Total Supply}\right) \ \cdot \left(\dfrac{StakeTime}{12\text{ months}}\right) \cdot TimeMultiplier$

Formula Variables

Velocity: Invites Claimed / Invites Available
Premium: The amount of excess USDC in the treasury after ensuring a 1:1 backing, i.e. total USDC - VTX supply.
$b$ : Velocity coefficient: Provides control over the weighting given to the reduction in APY that occurs as the velocity increases.
StakeAmount: The amount of VTX being staked.
TotalSupply: The current minted supply of VTX.
TotalStaked: The total amount of VTX staked globally, including StakeAmount.
StakeTime: The duration of the staking period required for maturation, either 1, 3, 6, or 12 months.
TimeMultiplier: Committing to longer staking periods is rewarded by receiving an appreciation multiplier. The exact multipliers are subject to change over time, but a longer period will always receive a greater multiplier than a shorter period.

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Last updated 8 months ago

Staking Formula

The APY for a staking position is calculated at the time of staking, and is guaranteed for the duration of the period selected. Valid staking periods are 1, 3, 6, and 12 months.

\text{APY} = \left(\dfrac{Yield}{StakeAmount}\right) \left(\dfrac{12 \text{ months}}{StakeTime} \right)

where

Yield = \left((1 - b) + b \cdot Velocity\right) \cdot Premium \cdot \left(\dfrac{Stake Amount}{Total Supply}\right) \ \cdot \left(\dfrac{StakeTime}{12\text{ months}}\right) \cdot TimeMultiplier

Formula Variables

Velocity: Invites Claimed / Invites Available

Premium: The amount of excess USDC in the treasury after ensuring a 1:1 backing, i.e. total USDC - VTX supply.

$b$ : Velocity coefficient: Provides control over the weighting given to the reduction in APY that occurs as the velocity increases.

StakeAmount: The amount of VTX being staked.

TotalSupply: The current minted supply of VTX.

TotalStaked: The total amount of VTX staked globally, including StakeAmount.

StakeTime: The duration of the staking period required for maturation, either 1, 3, 6, or 12 months.

TimeMultiplier: Committing to longer staking periods is rewarded by receiving an appreciation multiplier. The exact multipliers are subject to change over time, but a longer period will always receive a greater multiplier than a shorter period.