Staked QD (sQD)
Last updated
Last updated
The staking system is built using an vault model where sQD represents a share of the underlying principal QD token pool. Unlike many staking systems that require manual claiming, sQD automatically increases in redemption value as rewards accrue.
100% of sell taxes flow into the system as cycle rewards, where the total pool value increases while the total sQD supply remains relatively constant, thereby increasing the exchange rate over time. This approach eliminates gas-intensive claiming, ensures fair distributions, and creates a naturally compounding effect.
The protocol's reward structure does not rely on inflationary token emissions, but rather on captured protocol revenue and transaction taxes, creating a sustainable model.
Users can unstake at any time without penalties.
Returns fluctuate based on transaction volume and total staked supply.
The eliminates gas costs associated with manual claiming or compounding which optimizes returns, especially for smaller positions.
While all other values you'll see on the page are tailored to your specific position, there are two informative cards displaying essential protocol information,
Protocol Bucket Totals
Principal Vault: the total staked QD and all cumulative rewards, where the ratio of your deposit generates sQD. As the protocol grows, the sQD:QD exchange rate changes, and as such, using the example image above, if you were to deposit 141 QD, you'd receive 100 sQD tokens.
Current Distribution: these are the rewards that are actively being distributed for the rest of the cycle. As cycles near completion, this value will go down.
Next Cycle Minimum: total QD collected from sell taxes, this value grows over the course of the current cycle, and after reinitialization of a new rewards cycle, this value resets.
Rewards Cycle
Rewards cycles last approximately 7 days, or 50,000 blocks. The estimated completion time is an extrapolation based on an average block time of 12.05 seconds.
After the cycle completes, rewards granted to the next cycle caller grow linearly over about 6 hours (1800 blocks), topping out at 0.5% of the full next cycle pool.
This notification only appears to users when a rewards cycle completes and serves a simple purpose, to help decentralize the segregated pool architecture.
As mentioned, the rewards grow linearly over the course of 1800 blocks to prevent bot activity from calling a new rewards cycle, however the total may still grow within this window as the next cycle bucket grows.
