Two Pools: Single Asset and LP Staking
The Revest Staking system is designed to incentivize token lock-ups and to reward those who demonstrate their dedication to the success of the protocol. The system includes two pools, i.e., a single asset pool and a Uniswap V2 liquidity pool. The staking rewards are split evenly between the two pools, so that, for instance, should ETH 1 be distributed during a given period, each pool would receive ETH 0.5 in rewards. The rewards offered to RVST stakers also increase with the length of their staking period to incentivize longer term staking.
During the first 6 months of the Revest Protocol’s operation, the Open Beta period, staking rewards will be distributed in RVST tokens. As some point during this period, the Revest fee engine will be turned on and staking rewards will be distributed both in RVST tokens and ETH. Following the Open Beta period, the staking rewards will come exclusively from the fees generated by the Revest Protocol. 99% of these fees will be distributed evenly to RVST single asset and liquidity pool stakers, and the remaining 1% will be allocated to the Revest Liquidity pool. Stakers will be able to claim their rewards at any time from their staking FNFTs’ info panel, which may be found by clicking on the staking FNFTs displayed in the Revest gallery.
The Longer You Stake, the More You Make
For both single asset and liquidity pools, RVST holders can choose between 1, 3, 6, or 12-month staking periods. Each staking period is assigned a multiplier and this multiplier increases in magnitude with the length of the staking period to incentivize long-term staking.
Each staker in a given pool receives a certain number of allocation points, which are calculated by multiplying the number of RVST tokens that she staked by the multiplier assigned to their staking period (see above table). Rewards are allocated among stakers within each pool separately, based on their share of the pool’s total allocation points.
For instance, if a liquidity pool staker receives 5 allocation points at the end of a reward period and the total allocation points for the pool is equal to 100, she will receive 5% of the rewards distributed to liquidity pool stakers during that period. If someone comes in before the end of the reward period and stakes enough to receive 100 allocation points, bringing the pool’s total allocation points to 200, the first staker will receive 2.5% of LP staking rewards instead of 5%.
How Unstaking Works
If someone chooses a longer staking period, her RVST tokens will remain locked for a longer period, but she will receive a higher reward in return. Staking periods are not measured in calendar months, but in 30-day increments, as shown in the table below:
To unstake her tokens, a staker must wait until the end of her staking period. If she fails to withdraw her RVSTs from her staking FNFT during the withdrawal period, her staking FNFT will automatically re-lock itself for the same period, and she will have to wait until the end of this new period to withdraw her tokens.
Example: If I staked my tokens on September 27th, 2021 into the single asset pool for a period of 3 months, I will be able to unstake them from Sunday, December 26th, 2021 to Friday, December 31st, 2021. If I do not unstake my tokens during this period, then my next opportunity to unstake them will be Saturday, March 26th, 2022.
The Revest Open Beta: 6 months of RVST Rewards
To incentivize RVST staking during this initial 6-month period of operation of the Revest Protocol, a total of 2.5M RVST tokens will be distributed as rewards to stakers. This works out to roughly 104,166.7 RVST/week, which will be split evenly between each pool. These rewards will be paid out every Friday afternoon, Eastern Standard Time. As some point during Open Beta period, the Revest fee engine will be turned on and staking rewards will be distributed both in RVST tokens and ETH. Beyond the Open Beta, staking rewards will come exclusively from the fees generated by the Revest Protocol.
- Q: What are LPs and how do I stake them?
- A: LP staking is potentially more rewarding than single asset staking, since fewer people stake their tokens in a liquidity pool, but it also exposes stakers to impermanent loss. If you are not familiar with LP staking, we suggest you perform extensive research prior to engaging in it.
- Q: Can I stake my Uniswap V3 LP NFTs?
- A: Not at the current time. We will be posting an announcement to our website if this becomes feasible in the future.
- Q: What is the APY associated with my single asset or liquidity pool staking position?
- A: It is impossible to predict the APY of a staking position accurately when the rewards are distributed proportionally within each pool. While it may be possible to formulate a prediction of a staking position’s APY at the time of staking, the accuracy of such a prediction diminishes significantly if more people come into the staking pool after you and dilute your share of the total rewards that will be distributed. It is also possible that users will withdraw after their staking period expires, increasing your rewards.
- Q: Where do my rewards go?
- A: They are deposited into the FNFT which represents your staking position. This staking FNFT is viewable in your gallery at app.revest.finance.
- Q: Can I transfer the staking FNFT?
- A: Yes, staking FNFTs may be transferred to someone else, along with any unclaimed fees, just as any other FNFT, by selling them on an NFT marketplace. This is a useful strategy to exit staking positions ahead of time.