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 = e s C R U I Z E _ h e l d l i q u i d i t y _ p r o v i d e d r=\frac{esCRUIZE\_held}{liquidity\_provided} r = l i q u i d i t y _ p ro v i d e d es CR U I ZE _ h e l d where the multiplier associated with each tier is as follows:
r r r 1x multiplier
5% < r r r 4x multiplier
15% < r r r 10x multiplier
25% < r r r 25x multiplier
In order to avoid exceeding the 10,000,000 yearly rewards limit, the following constrain must be achieved:
( u s e r s _ t i e r _ 1 ∗ 1 ∗ x ) + ( u s e r s _ t i e r _ 2 ∗ 4 ∗ x ) + ( u s e r s _ t i e r _ 3 ∗ 10 ∗ x ) + ( u s e r s _ t i e r _ 4 ∗ 25 ∗ x ) = 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*} ( u sers _ t i er _1 ∗ 1 ∗ x ) + ( u sers _ t i er _2 ∗ 4 ∗ x ) + ( u sers _ t i er _3 ∗ 10 ∗ x ) + ( u sers _ t i er _4 ∗ 25 ∗ x ) = 10 , 000 , 000 where x x x
x = 10 , 000 , 000 ∑ i = 1 4 ( users_tier_i * multiplier_i ) x=\frac{10,000,000}{\sum_{i=1}^4 (\text{\\users\_tier\_i * multiplier\_i})} x = ∑ i = 1 4 ( users_tier_i * multiplier_i ) 10 , 000 , 000 for m u l t i p l i e r _ i multiplier\_i m u lt i pl i er _ i i i i
Example
Let’s see this with an example. Let’s suppose the protocol configuration is as follows,
A P Y _ a f t e r _ p r o t o c o l _ f e e s APY\_after\_protocol\_fees A P Y _ a f t er _ p ro t oco l _ f ees
C R U I Z E _ p r i c e CRUIZE\_price CR U I ZE _ p r i ce
Let's suppose that we have 4 users with the following percentages of LP provision and staked assets
user 1: 10% l i q u i d i t y _ p r o v i d e d liquidity\_provided l i q u i d i t y _ p ro v i d e d e s C R U I Z E _ h e l d esCRUIZE\_held es CR U I ZE _ h e l d r r r
user 2: 10% l i q u i d i t y _ p r o v i d e d liquidity\_provided l i q u i d i t y _ p ro v i d e d e s C R U I Z E _ h e l d esCRUIZE\_held es CR U I ZE _ h e l d r r r
user 3: 10% l i q u i d i t y _ p r o v i d e d liquidity\_provided l i q u i d i t y _ p ro v i d e d e s C R U I Z E _ h e l d esCRUIZE\_held es CR U I ZE _ h e l d r r r
user 4: 70% l i q u i d i t y _ p r o v i d e d liquidity\_provided l i q u i d i t y _ p ro v i d e d e s C R U I Z E _ h e l d esCRUIZE\_held es CR U I ZE _ h e l d r r r
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 ( 3 ∗ 4 ) + ( 1 ∗ 25 ) = 270 , 270
\begin{gather*}
x\ =\ \frac{10,000,000}{( 3*4) \ +\ ( 1*25)} \ =\ 270,270\\
\end{gather*} x = ( 3 ∗ 4 ) + ( 1 ∗ 25 ) 10 , 000 , 000 = 270 , 270 which gives a final total APY of
user 1: 8.30% + 4 ∗ x 10 % ∗ 10 , 000 , 000 \frac{4*x}{10\% * 10,000,000} 10% ∗ 10 , 000 , 000 4 ∗ x
user 2: 8.30% + 4 ∗ x 10 % ∗ 10 , 000 , 000 \frac{4*x}{10\% * 10,000,000} 10% ∗ 10 , 000 , 000 4 ∗ x
user 3: 8.30% + 4 ∗ x 10 % ∗ 10 , 000 , 000 \frac{4*x}{10\% * 10,000,000} 10% ∗ 10 , 000 , 000 4 ∗ x
user 4: 8.30% + 25 ∗ x 70 % ∗ 10 , 000 , 000 \frac{25*x}{70\% * 10,000,000} 70% ∗ 10 , 000 , 000 25 ∗ x
Last updated 11 months ago
