We’re happy to announce that after the positive conclusion of the audit of the smart contracts, we’re ready to release our brand new auto-compound staking.
What are the main changes from the previous staking version?
OVR staking 1.0 just delivered simple interest, no compounding on the interest was accrued during the staking period. OVR staking 2.0 assigns a base interest that gets compounded daily, exponentially increasing returns. The longer you stake your OVR, the higher the total yearly return.
Below is a chart that showcases the difference in APY between simple and compounded returns for the same daily interest rate.
Staking 2.0 has five tiers, each distinguished by a unique funds lockup period. The longer the lockup, the higher the daily interest rate that gets compounded.
No Lockup: 0.01%
3 Months Lockup: 0.03%
6 Months Lockup: 0.04%
9 Months Lockup: 0.06%
12 Months Lockup: 0.08%
Stakers will be able to extend the lockup period at any time, the length of the allowed extension is equal to the lockup tier the staker chooses.
E.g.: Alice staked in the 3 Months Lockup auto-compound Tier, after the first month she decides to further extend her lockup, the available extension period for the pool is equal to 3 months, her new withdrawal date will be 4 months from the first deposit.
Each new deposit will trigger a lockup extension for all capital staked.
After the lockup period is ended – if not extended – users will keep accumulating compounded returns but the daily interest will collapse to the No Lockup interest rate. Additional details on the mechanics of staking 2.0, code, and audit report can be found here.
Stakers in the 6-9-12 months Tiers will have the additional benefit of accumulating credits which will be usable to acquire reserved lands. Only stakers will be able to acquire reserved lands which will be auctioned in subsequent batches (Colosseum, Taj Mahal, ….). For each batch, stakers will have a number of credits equal to their staking capital multiplier. The longer the Lockup Tier the higher the multiplier.
Multiplier 6 months: 1x
Multiplier 9 months: 1.5x
Multiplier 12 months: 2x
Further details regarding the distribution of the reserved OVRLands will be released in the coming weeks.