Welcome to the future of staking with IX Swap! Our newly launched staking system is designed to maximize your rewards while ensuring a fair and balanced experience for all users. Let's break down the essential elements of our staking campaigns, including the definitions, formulas, and user journey that come into play. Understanding these components will help you navigate the system effectively, enabling you to make the most of your staking experience.
Definitions
- Cooldown Period: A User must wait a designated period after the Staking Period before they can withdraw their Staked Assets and/or Staking Rewards if they choose to stop participating in any Staking Campaign.
- Early Redemption: when a User stops participating in any Staking Campaign prior to the end of the Minimum Lockup Period.
- Early Redemption Penalty: a penalty imposed upon Early Redemption.
- Lockup Period: the duration for which Digital Assets must remain staked to avoid Early Redemption.
- Minimum Staked Assets: the minimum amount of Digital Assets that must be staked to qualify for Points and Staking Rewards.
- Staking Tenor: the duration for which Digital Assets must remain staked to qualify for Points and Staking Rewards for campaigns.
- Points: A user who stakes digital assets in the IXS staking system will earn points if their staking meets the qualifications for any campaign based on the specified lockup period and tenor.
- Points Accrual Frequency: the specified intervals under which Points are accumulated.
- Multiplier: a factor used to calculate points for a specific lockup period.
- Smart Contract : a computer code that automatically executes all or parts of an agreement.
- Staked Assets: digital assets locked in a staking mechanism to support a blockchain network. Users earn rewards by staking these assets, which may be subject to lockup periods during which they cannot be withdrawn or traded.
- Staking: locking up Digital Assets for a period of time to gain Points and Staking Rewards.
- Staking Campaign: a Staking program offered by IX Swap to stake Digital Assets on a Supported Network, using the IX Swap Platform, in accordance with terms of that particular program.
- Staking Limit: maximum amount of Staked Assets, Users or the quantity of any other parameter that IX Swap may determine, in its sole and absolute discretion from time to time, that may be accepted for any Staking Campaign.
- Staking Period: the number of full days in which Staked Assets are staked in any Staking Campaign (calculated from 12:00 AM UTC of the day immediately after a User has participated in the Staking Campaign until 11:59 PM UTC of the day preceding the last day a User has participated in the Staking Campaign).
- Staking Rewards: Digital Assets distributed by Supported Networks in compensation for Staking, less any fees due to IX Swap, any Slashing Penalties and any Early Redemption Penalty.
- Unstake: the process of withdrawing staked assets, ending the lockup and stopping reward earnings
- Claim: the process of taking back the staked digital assets and collecting rewards.
Formula
- Points Earned
Number of points = n*M*r*t
Explanations:
- n: number of Staked Asset tokens.
- M: The multiplier applied based on the lockup period.
- r: number of Points earned per Staked Asset token per day.
- t: Staking period
Lockup Period
Multiplier
30 Days
1.0x
60 Days
1.1x
90 Days
1.2x
180 Days
1.5x
360 Days
1.8x
For example, if I stake 10 IXS for a 60-day lockup period and I have staked for 5 days, earning 3 points per day, my points would be calculated as follows:
Number of points = 10 * 1.1 * 3 * 5 = 165 points.
- Penalties
Amount of Staked Asset tokens to be deducted from User = n x [P0 x (1 − t / T)])
Explanation of the Formula:
- n - number of Staked Asset tokens.
- P0 - the maximum penalty percentage (in %). Initially, this value is set to 20%, but it can be manually changed in the smart contract in the future.
- t - Staking Period (in days).
- T- the Lockup Period (in days).
Calculations will be rounded up to the second decimal place.
Example:
The user staked 190 IXS decides to unstake after t = 30 days with a Lockup Period of T = 90 days. Max penalty P0 = 20%
To calculate the tokens the user will receive after the penalty:
- Amount of Staked Asset tokens to be deducted from User: 190 x 20% × (1 − 30/90 ) = 25.33
- Remaining Tokens After Penalty: 190−25.33=164.67
Thus, the user will receive approximately 164.67 IXS after the penalty.
- Cooldown Period
CP = ((T - t )/ T) × P
Explanation of the Formula:
- CP (Cooldown Period): The waiting period in hours before tokens can be withdrawn.
- t: Staking Period (in days).
- T: Lockup Period (in days).
- P: Max cooldown period. Initially, this value is set to 336 hours (14 days), but it can be manually changed in the smart contract in the future.
The value will be rounded to the nearest whole hour. For example, if the calculated cooldown period is 6.8 hours, it would round to 7 hours. If it's 6.2 hours, it would round down to 6 hours.
Example:
The user decides to unstake after t = 30 days with a total lockup period of T = 90 days. Max cooldown period P = 14 days (336 hours)
To calculate the cooldown period:
CP = ((90-30) / 90) × 336 = 224 (hours)
Therefore, the user can claim their tokens approximately 224 hours after initiating the unstake process.
But if the Staking Period is more than or equal to the Lockup Period, then the Cooldown Period shall be 0 hours and the user can immediately claim their tokens after unstaking.
User Journey
Campaign: Users can go to a campaign and choose options to stake IXS tokens.
There are 5 pools, each with different lockup periods and corresponding multipliers: 30 days - 1x, 60 days - 1.1x, 90 days - 1.2x, 180 days - 1.5x, 360 days - 1.8x.