🥩Staking
Staking
LEX Staking V1 is now live at https://app.lexer.markets/stake.
Overview
Users can stake $LEX to receive fees from all of the Hybrid Liquidity Engine markets.
Users can accumulate Multiplier Points for boosting their yields over time.
No locking or inflation from $LEX.
Staked LEX receives three types of rewards:
$esLEX
ETH Rewards
Multiplier Points
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 and they are burnt upon unstaking $LEX or $esLEX.
LEX Staking V1 Mechanism
By staking LEX as soon as possible, users will be rewarded with the maximum amount of esLEX, and multiplier points. Keep in mind that both esLEX and the multiplier points can then be staked for additional fee rewards.
An example of the benefits of early LEX staking:
💛Alice stakes $LEX with the multiplier points compounding because she's a smart cookie and she wants to maximize her rewards (yellow line). 🔴 Bob stakes $LEX, but he doesn't compound any multiplier points because he's busy doing something less important (red line). 🔵 Cathy just holds $LEX because she's a forgetful speculator (blue line).
Alice is now enjoying 2.4x of the yield sharing! 💛
esLEX
Escrowed LEX (esLEX) can be used in two ways:
Staking for rewards similar to regular $LEX tokens.
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.
Please note that esLEX is not transferable or sellable and must be vested to LEX for such actions.
Vesting of esLEX
esLEX tokens can be converted into LEX tokens through a vesting process, which can be accessed on the Earn page. When vesting is initiated, a corresponding amount of LEX or XLP tokens will be reserved.
For instance, if you staked 1000 LEX tokens and earned 1000 esLEX tokens, then to vest 1000 esLEX tokens, 1000 LEX tokens will be reserved. Similarly, to vest 500 esLEX tokens, 500 LEX tokens will be reserved. The ratio for LEX reserve required to vest esLEX is 1:1.
esLEX tokens that have been unstaked and deposited for vesting will not earn any rewards. However, staked tokens that are reserved for vesting will continue to earn rewards.
Upon initiating vesting, the esLEX tokens will be converted into LEX tokens every second and will fully vest over 365 days. Once converted into LEX tokens, they can be claimed at any time.
If a user sells LEX or XLP tokens but wishes to vest their esLEX rewards later, they will need to repurchase the LEX or XLP tokens. For the required reserve amount, LEX, esLEX, and Multiplier Points can be used interchangeably.
Depositing into the vesting vault while existing vesting is ongoing is possible.
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. Withdrawing will withdraw and unreserve all tokens, as well as pause vesting. Any esLEX tokens that had already been vested into LEX tokens will remain as LEX tokens.
Multiplier Points
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%
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