Infinet Staking Vaults
Last updated
Infinet Solutions Documentation
Last updated
Infinet Solutions introduces a highly flexible staking system called Staking Vaults. These vaults allow users to lock their tokens for a set period and earn rewards based on the length of the lockup period. The longer you commit your tokens, the higher the Annual Percentage Yield (APY) you can earn. This system is designed to reward long-term holders while offering flexibility with various lockup durations, ranging from 1 month to 12 months.
The reward structure is directly tied to the vault's lockup period. With APYs starting at 12.5% for a 1-month vault and reaching up to 150% for a 12-month vault, users can unlock significant rewards by choosing longer lockups.
Infinet staking vaults operate by locking your tokens for a specified period. The reward, or APY, is calculated based on the number of months the tokens are locked. The formula for APY is proportional to the lockup duration, meaning the longer you stake, the higher your rewards:
APY Formula:
This formula uses a base APY of 250,000 (25%) and a precision factor of 1,000,000 (1e6), as defined in the contract.
Example of How APY Works:
1-Month Lockup:
You stake tokens for 1 month.
APY is (1 × 250,000) / (2 × 1,000,000) = 12.5%
12-Month Lockup:
You stake tokens for 12 months.
APY is (12 × 250,000) / (2 × 1,000,000) = 150%
If a user needs to withdraw their tokens before the lockup period ends, a penalty is applied. The maximum penalty is set at 75% (750,000 / 1,000,000), and this penalty gradually decreases over time.
Penalty Calculation:
The penalty starts at the maximum of 75% and decreases linearly based on how long the tokens have been staked relative to the total lockup period.
If the time since staking is greater than or equal to the lockup period, there is no penalty.
Example of How Penalties Work:
Early Withdrawal (in a 6-month lockup):
You stake tokens in a 6-month vault.
After 2 months, you decide to withdraw early.
The penalty is calculated as:
750,000 - (2 months / 6 months) × 750,000 = 500,000
This represents a 50% penalty (500,000 / 1,000,000).
Withdrawal After Full Lockup Period:
You stake tokens for a 6-month period.
After 6 months or more, you decide to withdraw.
The penalty is 0% because you've completed the full lockup period.
Infinet allows users to open multiple staking vaults simultaneously. This means you can create different vaults with varying lockup periods, allowing you to diversify your staking strategy. For example, you might stake a portion of your tokens in a 1-month vault to earn quick rewards, while committing another portion to a 12-month vault for maximum long-term gains.
