What do you get for staking your money into our farms?
Well, you will get LOTL and BUSD paid out in form of the known APR and a new weekly distributed reward pool.
Let’s first talk about what you all are probably already familiar with. Every block a certain amount of LOTL will be minted to reward Users that stake their money in farms. Our starting minting rate will be 2 LOTL per block. This minting rate will be halved every 2^(-1 + timesHalved) days. Which would result in following token distributions assumed that we’re starting with 10.000 pre minted tokens.
Several future projects will be introduced using the LOTL token as utility to combat the inflation. Some of them were mentioned in the last post. These tokens will be rewarded through the farms and the reward pool.
60% of all minted tokens are split between all featured liquidity pools. The amount a liquidity pool recieves depends on the set reward rating. For example LOTL pools will recieve a higher multiplier than non LOTL pools. And then the rewards for each user are calculated depending on their share of liquidity in comparison to the total liquidity their stake is in. Non LOTL farms will have a deposit fee of around 1.5% and a unstaking fee of around 2.5%. This unstaking fee only applies for users with a low holding factor. 90% of these collected fees will flow straight into the reward pool and the other 10% will be used for marketing purposes.
The Reward Pool
Each time you enter a farm, your block of entry is saved. This represents the time you have holding a certain position and will increase your reward pool share. For each 14400 of blocks you have been holding, your reward factor increases by one. But what does that exactly mean?
This basically means that your holding factor multiplies your investment. Your share of the reward pool is increased not only by the holding factor you have, but also by the amount of different liquidity pools you are invested in and the reward rating of those pools.
Simplified each liquidity pool has it’s own share of the reward pool and the total reward pool share of a user is calculated by adding up all the users reward shares in all pools the user provides liquidity to. Calculating this consumes a hefty amount of gas. That is why the reward pool will only be distributed at set time intervals and will be initiated by the owner.
The teams current opinion about the time frame is a distribution of every 7 days. But if you’d have a different proposal feel free to voice it in our Telegram group!
Claiming the reward functions the same as claiming any LOTL from the farm. But what exactly does the reward pool pay out?
30% of all minted LOTL will accumulate in the reward pool and will then be paid out at the point of the reward pool distribution.
90% of all paid taxes in the current reward cycle will be accumulated and then swapped to BUSD. (-20% which will be burned)
We will be looking into more ways to increase the burn and the amount in the reward pool, we have several ideas coming up so stay tuned!
A deeper look at the underlying math can be found at our MasterChef contract.