StarkDeFi will also have a synergy pool feature that lets users earn more rewards by staking stablecoins or StarkDeFi's native token, $SDC. An overview of these synergy pools can be found below.
The stablecoin pool acts as a means for users to save without exposing their capital to unnecessary risks. There is no lock period, and users can withdraw from the pool whenever they choose to.
- Users deposit an allocated amount of stablecoins and are charged a small fee for participating in the pool (to prevent spams), which is used to buy and burn $SDC.
- Funds in the stablecoin pool are then lent/staked to a trustless and lossless protocol for yield.
- Accordingly, the StarkDeFi protocol allocates the yield:
- 95% of the yield is distributed to the prize pool as rewards
- 2.5% of the yield is allocated towards the $SDC burn schedule
- 2.5% of the yield is allocated towards to StarkDefi's and revenue sharing treasuries.
- A random selection of 20% of the participants will be selected to share the prize, two randomly choses lucky user will receive majority of the share for each round. The selection process will be transparent and fair to all participants using a VRF (Verifiable Random Function), and rewards will be distributed according to the respective average deposits per run period. As a result, the greater the deposit amount, the greater the chances of winning. For example, if User A deposits $1,000 and User B deposits $2,000, then User B's chances of winning are twice as high as User A's (if the deposit is made simultaneously).
- In addition, the odds of winning depend on the average deposit amount per user for each run period. For example, if User A deposits $1,000 at the start of the run period, their average deposit will be $1,000. In contrast, if User B deposits $2,000 halfway through the run period, their average will be $1,000 (i.e. $2,000/2), equal to User A's deposit (even though User B has the larger deposit).
Users can withdraw 100% of their principal from the stablecoin pool at no additional cost or penalties. Reward winners must also claim or call their rewards within three months to ensure they are 100% allocated to their wallets. After three months, rewards are slashed by 50% and reallocated to StarkDeFi's $SDC burn schedule.
This pool lets users lock their $SDC tokens for additional staking rewards and returns. In simple terms, the process of participating in the $SDC pool is as follows:
- Users stake $SDC in the locked $SDC pool, and an APY determined by the staking protocol is generated.
- The $SDC token deposited into the pool is locked for a time period between 5-10 weeks to ensure maturity. Once this period ends, a random selection of 20% of the participants will determine two winners sharing the 95% rewards pool. This selection will be deployed using a Verifiable Random Function (VRF) protocol.
- Rewards are then allocated based on the respective average deposits per run period. So similar to the Stablecoin pool, the greater the deposit amount, the greater the chances of winning.
- The principal will be returned in full and will not be slashed. However, like the Stablecoin pool, 95% of the yield is distributed to the reward pool, and 5% is allocated towards the $SDC burn schedule.
Users do not have to pay any fees to participate in the Locked $SDC program, and since entry is locked during the run period, the $SDC deposits will also be locked during this period.
FAQ: How many winners are eligible for the rewards?
For the Stablecoin pool, there will be a maximum of 3 winners; however, the number of winners can fall between 1-3. The locked $SDC pool will have a maximum of 5 winners, with the total number ranging between 1-5.