🔒STAKING PROGRAM
Date of Last Update: January 29, 2024
Welcome to the Houdini Swap Staking Program. This innovative, robust and sustainable program is designed to reward you for long-term holding of $LOCK while also enhancing the overall value of Houdini Swap's ecosystem.
Overview
Staking $LOCK earns additional $LOCK as rewards. Rewards earned this way are intended to encourage $LOCK staking and so contribute to the stability and value of the token's ecosystem.
The Staking Program is fully funded and self-sustaining. It is funded from the fees Houdini Swap accrues from our exchange partners which are utilised to buy back $LOCK on-market.
This happens via an integrated buy bot, with buybacks executed continuously, randomly and in small quantities,.
$LOCK from each buyback is then automatically deposited into the staking contract, which then allocates their distribution to stakers.
How The Staking Program Works
Weekly Token Burns
To further enhance $LOCK value, a portion of total token supply apportioned from previous buybacks as well as penalty fees applied for early withdrawal are systematically burnt every week.
Deflationary Mechanics
The combination of the buyback mechanism and the regular token burns makes the Staking Program inherently deflationary. Reducing overall supply over time like this results in increases in demand, and with it, associated value.
Rewards Allocation
Rewards are allocated to stakers based on their proportional stake in the pool meaning that the larger the stake a staking participant holds, the greater their share of the rewards.
Additional Opportunities for Rewards
Beyond the basic reward structure, staking participants can earn extra rewards through various incentives or gamification elements intended to be integrated into the Staking Program. These additional rewards are designed to enhance user engagement and incentivise staking and Houdini Swap transaction use.
Smooth Distribution Sequence
The distribution of $LOCK buybacks as rewards occurs over a 7-day period with the process executed in a smooth, per-second ‘dripping’ sequence to ensure a consistent distribution of rewards.
the staking smart contract adds $LOCK accumulated from the previous 7-days to the staking distribution pool, which occurs each Monday at 08:00 UTC
These $LOCK rewards are then distributed to stakers over the following 7 days
APY is calculated real-time but refreshed on the staking dashboard every 30 seconds
Dynamic Rewards
The relationship between Houdini Swap's transaction volume and the value of staker rewards is directly proportional. The value of buybacks is intrinsically linked to the fees earned from exchanges, making fees and the value of staking rewards dynamic in nature. As our transaction volume grows, so too do the fees earned from exchanges. This increase in fees subsequently boosts the value of buybacks, which in turn amplifies the value of rewards distributed to stakers.
Unstaking
Staking participants have flexible withdrawal or unstaking options. Unstaking is structured as a “trigger-based” withdrawal system, where you actively choose when to unstake your $LOCK. Unstaking requires 100% of the total staked balance to be unstaked.
Option 1: 90-Day Notice, No Penalty
Stakers provide a 90-day notice period. During this time, the staked tokens remain locked and no further rewards are accumulated. Following the notice period, stakers are eligible to claim both their initially deposited $LOCK and the $LOCK rewards accumulated up to when they gave notice.
Option 2: Immediate, With Penalty
Allows stakers seeking to instantly unstake their $LOCK. In order to do so a 25% penalty is applied to their total staked balance, meaning this includes both deposited $LOCK and any $LOCK rewards earned.
Penalty Distribution
The 25% withdrawal penalty is distributed to benefit our Houdini Swap ecosystem:
60%, is redirected back to the staking pool, increasing the reward pool for remaining stakers.
Token Burn - 20%
Consistent with our deflationary token model, 20% of the penalty is burnt on a weekly basis, contributing to the reduction of overall token supply.
Treasury - 20%
The remaining 20% of the penalty is allocated to the treasury, supporting the platform's growth and development.
Smooth Distribution
The additional rewards from penalties are distributed to the staking pool over a 30-day period in a per-second ‘dripping’ sequence.
Terms of Service
In order to participate in the Staking Progtam you must understand, accept and comply with our Terms of Service, which can be found by clicking the link below.
▪️pageTerms of ServiceLast updated
