Bonus rewards system with NFT staking is live!

We are thrilled to announce the release of our Bonus Rewards System, a key step towards building an intelligent incentives system that rewards our most active users. The vision is to make Stake DAO a platform that incentivizes its most dedicated users, encourages smarter asset management, and ultimately optimizes revenue generation for the DAO.

Each week, users will be able to claim bonus rewards for all their activity on the platform, based on several metrics that quantify their level of contribution to DAO revenues. Bonus rewards are supplementary to existing Strategy rewards — and serve as an extra incentive for activity on Stake DAO.

Stake DAO NFTs have been carefully woven into the Bonus Rewards System, and today we announce that Tempest and Pythia grant their holders the ability to receive a multiplier/booster effect on this new rewards mechanism. This post explains the NFT powers within the context of this new system, and outlines how users can now enjoy additional rewards for using Stake DAO!

How do bonus rewards work?

Bonus reward allocations are determined by the amount a user has allocated in strategies, the score of each strategy, and the level of NFT rarity (Common, Rare, Unique). Users that allocate to strategies with higher scores will receive more rewards.

Users can claim bonus rewards each week via Polygon using the dashboard’s new Rewards tab.

What are the NFT powers?

Holders of Pythia and Tempest will enjoy varying levels of ‘power-up’ on Bonus Rewards, determined by the dollar-amount they have staked in our strategies, as well as the rarity of their NFT.

As you can only stake one NFT at any one time, you are advised to stake your most powerful (i.e. most rare) NFT.

These are the first of many powers to be revealed — stay tuned.

How are bonus rewards allocated?

As a result of the SDIP #4 dynamic rewards proposal, each Stake DAO strategy is now assigned a score in accordance with its profitability to the DAO.

Strategy scores represent the weight of each strategy, in a similar vein to Curve tokenomics. The sum of all strategy scores is equal to one, and each strategy makes up a fraction of this total. Scores change over time as Strategy Holdings and base APY evolve.

E.g.

Passive ETH 0.1

Passive USD 0.15

Passive BTC 0.08

Score Total

1.0

For each strategy, the algorithm computes the “average” share of each user during the week, to calculate the amount of shares each NFT staker holds in each strategy. It then applies a weighting to strategy deposits for each address, on an individual basis.

Let’s take an example:

0xROBERT has a 2% share of xSDT (score: 10%) , 1% share of PPS (score: 20%), 0,5% in Passive EUR (score: 15%) and no shares in other strategies.

He would have: 2%*10% + 1%*20 % + 0,5%*15% =0.00475 “overall share.”

We then apply 0xROBERT’s NFT boost, in accordance with the rarity of his NFT: Common (x1 boost), Rare (x3 boost), Unique (x12 boost). To access this boost, the NFTs in 0xROBERT’s wallet will have to be staked as per the instructions below.

0xROBERT has to complete 2 transactions, #1 to approve contract interaction and #2 to stake the NFTs.

0xROBERT has a Rare NFT staked, and so his share is multiplied by 3.

Now 0xROBERT has an overall NFT score of 0.00475*3=0.01425: this score is then divided by the sum of all NFT scores. Let’s suppose it equals 1.5.

ROBERT score will be 0.01425/1.5 = 0.0095 → 0,95%

With his NFT, ROBERT will get 0.95% of the weekly rewards.

TL;DR

In a nutshell, the more you invest in PPS, sanctuary and strategies with higher strategy scores, and the rarer your staked NFT is, the more rewards you receive!

How can I stake my NFT?

Pythia and Tempest holders can stake their NFTs by heading to the Marketplace tab > My Collection. Eligible holders can then click the “Stake” button below the image of their NFT.

How can I claim rewards?

Rewards earned from NFT staking can be claimed via Polygon under the “Rewards” tab on the dashboard. If your Web3 wallet is connected to Ethereum, you will be asked to switch to Polygon (Matic) Network to claim.

How can I get the last Pythia & Tempest NFTs?

The sale of remaining Pythia NFTs will be announced shortly. All Tempest NFTs have been claimed, and no more will be issued.

How are the Strategy scores calculated?

We compute strategy scores the same way we compute SDT allocations — based on the amount of revenue each strategy brings in each week.

The specific numbers can be found on our governance forum https://gov.stakedao.org/, where we publish allocations each week.

Snapshots will be taken on a weekly basis on Tuesdays following the snapshot for strategies and SaaS.

How much will be given out as rewards?

For the first week, 4600 SDT (0.1 SDT per block) will be allocated as Bonus rewards. This first batch will be claimable on the Rewards tab, and will need to be claimed by X. This information can also be found on the Stake DAO Governance forum.

Find us

Telegram: https://t.me/StakedaoHQ 🐘

Twitter: https://twitter.com/StakedaoHQ 🕊️

Discord: https://discord.com/invite/25HzsEwA6G 👾

Website: https://stakedao.org 🌐

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