How the heck is APY calculated??

  • staking early
  • selecting the longest lockup period
  • remaining staked even after the lockup expires

Agenda

  • How rewards are distributed
  • How we derived 702% APY
  • How to exceed earning 702% APY
  • Appendix: Simplified rewards allocation example

How rewards are distributed

  • GEM rewards are being paid out over 30 weeks from event launch (28 Dec 2021), with a varying payout every 12 hours (see release schedule below). Once you stake your tokens and receive an sGEM, you will start accumulating rewards within 12 hours.
  • Rewards will only be available to users who provide liquidity in the event duration (up to 40 million in xGEMs and equivalent MATIC pair) and staked their LP tokens with us. (For a guide on how to stake, refer to our previous article.)
  • Your share of rewards is determined by the size of your stake and lockup period (6, 13 or 26 weeks). For the same stake, a 26-week lockup entitles you to an outsized 7x share of the rewards over a 6-week stake.
Reward multipliers for different lockup options
  • Staking earlier qualifies you for more GEM rewards over the 30-week rewards span. If you choose to remain staked after lockup expires, you continue to receive your share of rewards in the same weightage.

How we derived 702% APY

  1. APYs are annualised from projected GEM rewards received during lockup period only.
  2. xGEM price at the point of rewards release (not lockup expiry) is used for APY computation.
APYs vary based on user actions due to preset rewards schedule
  1. Staking volume builds steadily over the 28-day event, filling up the 40-million xGEMs quota on day 26.
  2. 70% of staking volume is concentrated in the longest lockup option (26 weeks) due to the favourable reward multiplier.
  3. There is healthy token swapping volume in the liquidity pool, leading to a steady increase in xGEMs price, to 2x of launch price after 30 weeks.
  4. Among users who are eligible to unstake, only a small percentage (0.1%) do so each day. (We used a low estimate for this figure due to our unique sGEM NFT feature. We are also working on providing more utility to sGEMs to reward users who have supported us by staking.)
Estimated maximum APYs (early stakers)

How to exceed earning 702% APY

1. Sell your sGEM NFT on OpenSEA to another user

2. Price increase of xGEMs

3. HODL even after your 26-week lockup expires

Appendix: Simplified rewards allocation example

  • Staker 1: Stakes 1,000 QuickSwap tokens with 6-week lockup (1x multiplier)
  • Staker 2: Stakes 2,000 QuickSwap tokens with 13-week lockup (3x multiplier)
  • Staker 3: Stakes 500 QuickSwap tokens with 26-week lockup (7x multiplier)
  • Staker 1: 1,000*1 / (1,000*1+2,000*3+500*7) = 10% of rewards
  • Staker 2: 2,000*3 / (1,000*1+2,000*3+500*7) = 57% of rewards
  • Staker 3: 500*7 / (1,000*1+2,000*3+500*7) = 33% of rewards
  • Staker 1: 1,000*1 / (1,000*1+500*7) = 22% of rewards
  • Staker 3: 500*7 / (1,000*1+500*7) = 78% of rewards

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