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Staking
- User can accumulate Multiplier Points to enjoy yield boosting over time
- No locking & inflation from $LEX
- $esLEX
- Multiplier Points
- ETH Rewards
Here's a quick overview of each token's properties
- $LEX can be staked to earn protocol fees in ETH, $esLEX, and Multiplier points
- $esLEX can be staked to earn protocol fees in ETH, $esLEX, and Multiplier points but it's non-transferable (non-tradable)
- Multiplier points can multiply your protocol fee in ETH, it is burnt upon unstaking $LEX or $esLEX
With Early staking LEX, extra esLEX, and LEX Multiplier points will be rewards. Both esLEX and LEX Multiplier points can be staked for fee rewards
Stakers should stake LEX as early as possible, here’s an example
💛Alice stakes $LEX with multiplier points compounding because she's smart (Yellow Line)
🔴 Bob stakes $LEX, but he doesn't compound any multiplier points (Red Line)
🔵 Cathy holds solely $LEX (Blue Line)
You can see Alice is enjoying 2.4x of yield sharing! 💛
Alice is smart, She is staking and compounding LEX rewards earlier than Bob and Cathy.
Escrowed LEX (esLEX) can be used in two ways:
- 1.Staked for rewards similar to regular $LEX tokens
- 2.Vested to become actual $LEX tokens over a period of one year
Each staked $esLEX will earn the same amount of protocol fees in ETH and esLEX rewards as a regular $LEX
Note that esLEX is not transferable
$esLEX can be converted into $LEX through vesting, this can be accessed on the Earn page.
When vesting is initiated, the average amount of LEX or XLP that was used to earn the esLEX rewards will be reserved.
For example, if you staked 1000 $LEX and earned 1000 $esLEX tokens, then to vest 1000 $esLEX tokens, 1000 $LEX tokens will be reserved. To vest 500 esLEX, 500 $LEX will be reserved. The ratio for $LEX reserve required to vest $esLEX is 1:1
$esLEX that have been unstaked and deposited for vesting will not earn rewards. Staked tokens that are reserved for vesting will continue to earn rewards.
After initiating vesting, the esLEX tokens will be converted into LEX every second and will fully vest over 365 days. esLEX tokens that have been converted into LEX are claimable at anytime.
If a user sells LEX or XLP tokens and would like to vest their esLEX rewards later on, they would need to re-buy the LEX or XLP tokens. LEX, esLEX and Multiplier Points can be used interchangeably for the required reserve amount.
Depositing into the vesting vault while existing vesting is ongoing is supported.
Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve the tokens, use the "Withdraw" button on the "Earn" page. Partial withdrawals are not supported, so withdrawing will withdraw and unreserve all tokens as well as pause vesting. All esLEX tokens that had been vested into LEX will remain as LEX tokens.
Multiplier Points reward long term holders without inflation
When you stake LEX, you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 $LEX staked for one year would earn 1000 Multiplier Points.
Multiplier points can be staked for fee rewards by pressing the "Compound" button on the "Earn" page, each multiplier point will boost ETH at the same rate as regular LEX token.
When LEX or esLEX are unstaked, the proportional amount of Multiplier Points are burnt. For example, if 1000 $LEX is staked and 500 Multiplier Points have been earned so far, then unstaking 300 $LEX would burn 150 (300/1000*500) Multiplier Points. The burn will apply to the total amount of Multiplier Points which includes both staked and unstaked Multiplier Points.
The "Boost Percentage" shown on the "Earn" page shows your individual boost amount from Multiplier Points. For example, if the ETH APR is 10% and you have $10,000 worth of LEX and esLEX, then your rewards would be $1000 annualized, if you additionally have an amount of Multiplier Points equivalent to 20% of your total amount of LEX and Escrowed LEX, your "Boost Percentage" would display as 20%, and you would get an extra $200 of ETH rewards annualized. The “Boost Percentage” is calculated from the ratio of Multiplier Points to your total amount of staked LEX:
Boost Percentage = 100 * (Staked Multiplier Points) / (Staked LEX + Staked esLEX)
An example:
100 * (4.5656) / (7.54 + 2.00) = 47.85%