Staking parameters

The staking contract includes features that allow the contract owner to manage staking parameters to optimize the staking experience.

Key Parameters

• Staking APR: The Annual Percentage Rate (APR) for staking is fixed for every user and does not decrease as more people stake. The current base staking APR is 3.5%.

• Staking Token Cap: To ensure that every person can receive the same APR, there is a ceiling on the amount that can be staked. The staking cap is currently set at 50 million LCD tokens. This limit helps maintain consistent reward distribution among all stakers.

The staking token cap can be modified by the contract owner. If lowered below the current total tokens in staking:

• No Additional Staking: Users cannot add more tokens to staking until the total staked amount falls below the new cap.

• Continued Rewards: Users with existing staked tokens will continue to receive rewards and can withdraw their tokens as usual.

• Minimum Staking Boost Amount: This is the minimum amount a user must stake to start accruing the APR multiplier. Currently, this amount is set at 25,000 LCD tokens.

Minimum staking boost amount updates can be done by the contract owner.

• If the amount is raised: Boost resets for users below the new limit.

• If the amount is lowered:

  Users who now meet the limit must withdraw and restake their LCD to activate the boost.

Staking Boost Tiers

Staking boosts are applied based on the duration your tokens are staked. The APR is increased by a multiplier that depends on the length of time the tokens are staked. Here are the current boost tiers:

• 1+ Month: x1.1

• 3+ Months: x1.2

• 6+ Months: x1.4

• 12+ Months: x1.6

Tiers updates can be done by the contract owner, and all users staking will adhere to the new parameters automatically. Staking rewards collected after the latest update will be calculated with the latest boost tiers.

Additional Rules

• Maintaining the Boost: If a user stakes more tokens or claims rewards, the boost does not reset. However, if a user unstakes, the boost resets.

Example Perks from Staking Boost

Here are some examples of perks that users can enjoy by staking more LCD tokens and taking advantage of the staking boost:

• Raffle Participant Odds: By staking more, you can enhance your chances of winning in our exclusive raffle events.

• Borrower Benefits: Higher loan-to-value ratios for borrowers who stake their LCD tokens, enabling more flexible and higher borrowing capacity.

• Higher LTV for Borrowers: Access to increased loan-to-value ratios, allowing you to leverage a higher percentage of your staked tokens as collateral for loans, providing greater borrowing power.

By participating in the staking program, users can maximize their rewards and enjoy exclusive benefits across the Lucidao ecosystem.