Staking Mechanism
Staking is designed to reward participants who lock their SILK tokens while providing much needed liquidity to the DEX pool. In return, they receive SILK from the Staking Reserve. The Staking Reserve is a finite and depletable resource that is intended to motivate all users to contribute more actively.
There are 3 types of Staking:
NFT Staking Token
Staking Token
Liquidity pools (DeFi)
NFT staking mechanics
Player “locks" the NFT.
When an NFT is staked its base value is calculated by the system according to its Marketplace avg. price.
Minimal 2 NFTs to start staking.
Pools need to be of the same type of NFT.
There’s a Max of 3 months that NFTs can be staked, then they lose the staking option and players must use new NFTs to keep earning.
When a player stakes an NFT, an additional Bonus reward on the SILK Token reward is given according to the NFT type and its value.
Silk Token rewards are paid once monthly
Token staking mechanics
No NFTs are to be given on token staking only tokens.
There’s a cap and minimum period of 1 month for staking tokens, players must claim their rewards after this period to reset and keep earning SILK.
Users will be able to select different vesting periods, the longer they stake the more rewards they get.
Periods: 1M / 3M / 6M / 9M / 12M
Token Liquidity pools (DeFi)
Silk token liquidity pool is locked based on Defi Smart contract.
Total Value Locked (TVL)
The TVL displayed refers to the users’ funds deposited into the pool (total USD value of all the tokens). A higher number generally indicates a pool has many depositors. When the TVL of a DeFi platform rises, it is followed by an increase of liquidity, popularity and usability. The positive is that pools with a high TVL value are typically safer than those with a low TVL. The opposite side is that the higher the TVL of a pool, the lower the rewards earned as more participants share the rewards.
Annual Percentage Rate (APR)
The APR is displayed for the pool. The APR value is determined by the amount of rewards a pool is currently distributing and a pool's current TVL. The APR may fluctuate as deposits are added to or removed from the pool. Users should be aware that the amount of Rewards distributed decreases by 3% every two weeks. Based on the amount on APR, users can estimate how much SILK their deposit is likely to return.
Annual Percentage Yield (APY)
The APY is also displayed for the pool. Using the APY, users can estimate their potential return on deposits based on an equal interval of reward claims.
Staking pools (examples):
SILK only pool:
Full Rewards: 25% APY
Full maturity: 90 days
Early withdrawal: 60 days early withdrawal
Early withdrawal: 10% APY
No Minimum, MAX stake allowed 200,000 $SILK for each user
Pool size: 2.5 million SILK
LP pair (liquidity pool):
Dex:
SILK/ETH pool
2. SILK/BNB pool
SILK/ETH:
Rewards: Pool Trading Fees + 100% APY
Full maturity: 90 days
Early withdrawal after: 60 days
Early withdrawal: 10% APY
Pool Size: 200k SILK/ETH each side
Yield is based on the fees from the transactions on the Pool.
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