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?

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

What are the NFT powers?

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?

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?

How can I claim rewards?

How can I get the last Pythia & Tempest NFTs?

How are the Strategy scores calculated?

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?

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