Auto HODL BLUES Pool
Stake BLUES to earn more BLUES with additional HODL reward and auto rewards compounding
The Auto HODL pool is a kind of Yield pool that provides two new opportunities to earn faster and with less effort: extra HODL rewards and auto rewards compounding.
Extra HODL rewards
Blueshift appreciates users who believe in the project and share our long-term vision. To reward our long-term supporters, Blueshift introduces a state-of-the-art yield pool reward model , called HODL pool. The model is a logical extension of our smart minting system.
Every time a users in possession of locked rewards unstake their available BLUES from the pool, they lose some of their locked rewards in favor of all long-term stakers. The reward amount is distributed among all current pool stakers.
The share of lost locked rewards equals the amount of unstaked share of available compound.
Example:
I have a total of 1100 compounded BLUES tokens: 1000 locked and 100 available.
I want to unstake 30 BLUES tokens = 30% of tokens available for unstaking
→ I will lose 300 locked BLUES tokens = 30% of locked rewards
In the app you see "extra xx% as HODLer". It is a kind of additional pool APR that reflects the average pool HODL reward. It is a dynamic value that depends on the average amount of unstaked tokens and the current minting epoch.
The longer you HODL BLUES tokens and the more funds other users unstake before reaching the TVL goals → the more rewards you will receive when the targets are reached.
Example:
Imagine that there are only two users with an equal amount of staked BLUES tokens
Short-Term-User - Stakes 100 BLUES - Earns 1000 BLUES (100 available and 900 locked) - Unstakes all available tokens before TVL goals reached → loses all locked tokens → Reward: 100 BLUES tokens = 100% of tokens initially staked → Now owns a total of 200 Blues tokens
HODLer - Stakes 100 BLUES - Earns 1000 BLUES (100 available and 900 locked) - Earns 900 BLUES as a HODLER - TVL goals are reached so that all rewards are unlocked and become available - Unstakes all available tokens and not loses a single token → Reward: 1900 BLUES = 1900% of tokens initially staked → Now owns a total of 2000 tokens
Auto rewards compounding
Auto rewards compounding means that all rewards you earned will be compounded, thus added to your stake automatically by the protocol. It helps you to start earning faster: when your rewards are compounded, your staking amount increases and you start to earning more rewards each block. That is why it is called "compound interest".
The amount of rewards depends on the APY value of the pool. The APY is a dynamic value and depends on the Manual pool's APR and the compound per year rate.
Here is an example how "compound interest" works:
Imagine that you have staked tokens worth $100 to a pool, which provides you with a reward of 100% of staked tokens. Below you can see a comparison between two staking strategies, i.e. without and with compounding profit. In the described conditions with compounding profit you totally will have twice as much as without compounding profit.
| Initial state | Step#1 | Step#2 | Step#3 |
|---|---|---|---|
100$ | stake: 100$ rewards: +100$ Total: 200$ | stake: 100$ rewards: 100$+100$ Total: 300$ | stake: 100$ rewards: 200$+100$ Total: 400$ |
100$ | stake: 100$ rewards: +100$ Total: 200$ | stake: 200$ rewards: +200$ Total: 400$ | stake: 400$ rewards: +400$ Total: 800$ |
Without compounding you earn 100% of his stake each step, it's always the same amount.
With compounding you earn 100% reward of his stake each step as well. But you increase his stake each step that allows him to get more rewards on every next step (with the same pool APR).
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