Pegbreaker
  • Whitepaper
  • platform and features
    • Platform Features
    • Minting Strategy
    • LP Staking Program
    • Yield Strategy – Sustainable On-Chain Yield Generation
    • Lending platform
    • Epoch Staking and Reward System
    • Bond Issuance and Management
    • Governance, Proposals and Delegation
    • Points System
    • Maximizing Profits Through Risk-Free Approach
    • Leveraging AI Tools to Simplify the Experience for Users
    • AI-Driven MEV Bot Strategy
    • Exploring DeFi Vulnerabilities
    • Roadmap and Future Developments
    • Security and Compliance
    • Frequently Asked Questions
  • DAPP
    • WIP....
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  • Epoch System Overview
  • Staking and Unstaking
  • Rewards and Missing Rewards
  • Penalties for Missing Deadlines
  • Summary
  1. platform and features

Epoch Staking and Reward System

Epoch System with Penalties

Epoch System Overview

• Epoch Duration: Each epoch lasts for a fixed period (typically monthly), and there is a two-day window before the epoch ends where users can manage their staking and unstaking actions.

• Rewards Distribution: During an epoch, rewards are earned daily and updated in real-time. Rewards are visible to users on every block. However, rewards can only be claimed 10 days after the epoch ends. This allows rewards to accumulate efficiently for all users.

Staking and Unstaking

• Staking: When users stake their DPG tokens, they can either stake all of their tokens or a portion of them. By staking, users lock their tokens into the protocol to earn rewards based on the liquidity they provide to the platform.

• Auto-Compound Staking Option: When users first stake their DPG tokens or add more tokens to the existing stake, they have the option to choose whether their rewards will be automatically compounded and restaked. If this option is selected:

• The rewards will be auto-compounded (i.e., rewards will be added back into the stake automatically) from the moment the user stakes for the first time or adds more tokens.

• Important: This choice must be made when staking for the first time or adding more tokens. Once selected, the rewards will continue to be automatically compounded until the user decides to stop the auto-compounding feature.

• Unstaking: Users must request to unstake 14 days before the epoch window opens. If the user misses the deadline for requesting unstaking, they will incur no penalty as long as the request is made before the epoch window closes. However, if they miss the time window for requesting unstaking (the two-day window before the epoch ends), they will face a 3% penalty on their entire staked amount (including rewards).

Rewards and Missing Rewards

• Reward Distribution: Users accumulate rewards daily, which are updated in real-time. These rewards can only be claimed 10 days after the epoch ends.

• Missing Rewards: If users do not claim their rewards within the 10-day period after the epoch ends, the rewards will be saved on the contract for up to 14 days. If the user does not claim the rewards within the 14-day window, they will be auto-staked by the system.

• Claiming and Staking: After the rewards have been accumulated for 10 days, users can claim them or allow the system to auto-compound and stake them. The auto-compounding option will continue until the user decides to stop it or manually unstake.

• Auto-Staking After 14 Days: If the user has not claimed their rewards within the 14-day period, the system will automatically stake those rewards for the user. This ensures that liquidity is maintained and the protocol remains stable. The rewards will be automatically restaked, even if the user didn’t initially opt into auto-compounding.

Penalties for Missing Deadlines

• Penalty for Missing Unstaking Request: If users fail to request unstaking within the designated 14-day period before the epoch window, they will face a 3% penalty on their entire staked amount, including rewards. This penalty is only applicable if the unstaking request is made after the epoch window has closed. The penalty is designed to encourage users to adhere to the unstaking deadlines and prevent manipulation of market liquidity.

Summary

• Epoch Duration: Each epoch typically lasts for one month, with a 2-day window for unstaking, staking, and claiming.

• Reward Distribution: Rewards are distributed daily and can only be claimed 10 days after the epoch ends.

• Unstaking Deadline: Users must request to unstake 14 days before the next epoch begins to avoid penalties.

• Auto-Compound Option: When staking for the first time or adding more tokens, users can choose to auto-compound their rewards. If not selected, the system will auto-compound the rewards after the 14-day claim window.

• Missing Rewards: If rewards are not claimed within 14 days, they are automatically staked by the system to maintain liquidity.

• Penalty: If the user misses the 14-day unstaking deadline, they will incur a 3% penalty on the entire staked amount, including rewards.

This epoch-based staking and reward system is designed to create an engaging and sustainable liquidity ecosystem, fostering long-term investment and stability for PegBreaker users.

The auto-compounding and penalties incentivize users to stay active in the platform, thereby enhancing liquidity and reducing sell pressure.

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Last updated 1 month ago