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Yield Booster

One of the main incentives for staking $CRUIZE for $esCRUIZE is the ability to boost your rewards on the provided liquidity. $esCRUIZE tokens allow you to earn a boost of up to 25x on the yield generated on your provided liquidity.
A total of 10,000,000 $CRUIZE tokens will be reserved each year for these boosted rewards. The protocol will group users into 4 tiers depending on the below ratio,
r=esCRUIZE_heldliquidity_providedr=\frac{esCRUIZE\_held}{liquidity\_provided}
where the multiplier associated with each tier is as follows:
  • rr
    < 5% will receive a 1x multiplier
  • 5% <
    rr
    < 15% will receive a 4x multiplier
  • 15% <
    rr
    < 25% will receive 10x multiplier
  • 25% <
    rr
    will receive a 25x multiplier
In order to avoid exceeding the 10,000,000 yearly rewards limit, the following constrain must be achieved:
(users_tier_11x)+ (users_tier_24x)  + (users_tier_310x)+ (users_tier_425x) = 10,000,000\begin{gather*} ( users\_tier\_1*1*x)\\ +\ ( users\_tier\_2*4*x)\\ \ \ +\ ( users\_tier\_3*10*x)\\ +\ ( users\_tier\_4*25*x)\\ \ =\ 10,000,000 \end{gather*}
where
xx
constitutes the base reward rate. Therefore, the amount of returns to be augmented by each tier’s multiplier has to be:
x=10,000,000i=14(users_tier_i * multiplier_i)x=\frac{10,000,000}{\sum_{i=1}^4 (\text{\\users\_tier\_i * multiplier\_i})}
for
multiplier_imultiplier\_i
= 1, 4, 10, 25 for
ii
= 1, 2, 3, 4 respectively.

Example

Let’s see this with an example. Let’s suppose the protocol configuration is as follows,
  • TVLTVL
    = $10,000,000
  • APYAPY
    = 10%
  • APY_after_protocol_feesAPY\_after\_protocol\_fees
    = $830,000
  • CRUIZE_priceCRUIZE\_price
    = $0.3
Let's suppose that we have 4 users with the following percentages of LP provision and staked assets
  • user 1: 10%
    liquidity_providedliquidity\_provided
    ; 1%
    esCRUIZE_heldesCRUIZE\_held
    rr
    = 0.1 ⇒ tier 2
  • user 2: 10%
    liquidity_providedliquidity\_provided
    ; 1%
    esCRUIZE_heldesCRUIZE\_held
    rr
    = 0.1 ⇒ tier 2
  • user 3: 10%
    liquidity_providedliquidity\_provided
    ; 1%
    esCRUIZE_heldesCRUIZE\_held
    rr
    = 0.1 ⇒ tier 2
  • user 4: 70%
    liquidity_providedliquidity\_provided
    ; 97%
    esCRUIZE_heldesCRUIZE\_held
    rr
    = 1.38 ⇒ tier 4
Then the base APY generated on the total value staked by all users is 8.30% and the base reward rate of the APY is given by
x = 10,000,000(34) + (125) = 270,270 \begin{gather*} x\ =\ \frac{10,000,000}{( 3*4) \ +\ ( 1*25)} \ =\ 270,270\\ \end{gather*}
which gives a final total APY of
  • user 1: 8.30% +
    4x10%10,000,000\frac{4*x}{10\% * 10,000,000}
    = 44.3%
  • user 2: 8.30% +
    4x10%10,000,000\frac{4*x}{10\% * 10,000,000}
    = 44.3%
  • user 3: 8.30% +
    4x10%10,000,000\frac{4*x}{10\% * 10,000,000}
    = 44.3%
  • user 4: 8.30% +
    25x70%10,000,000\frac{25*x}{70\% * 10,000,000}
    = 104.83%