Boost Locked Single Sided Staking

Summary

If passed, this proposal will result in allowing users to lock APY tokens for a set time period to gain a boost to their APY token liquidity mining rewards.

Details

Boost-locking will allow APY token holders to stake their APY tokens for a selected duration, and earn boosted APY yield. This will allow users who are more committed to the long-term vision of APY.Finance to be rewarded with additional APY yield returns as a result.

Boost-locking may also open the doors for additional opportunities for incentivization in the future, rewarding users who boost-lock in different ways. In the future, this may mean additional voting strength, less platform fees once platform fees are implemented, and more.

In exchange for staked APY, users will receive ‘blAPY’, a placeholder token representative of their staked APY.

Users will be assigned blAPY based on: Amount locked up Duration of lockup.

Example: 100 APY deposited for 1 year → 100 * (1 year / 4 years) = 25 blAPY 200 APY deposited for 6 months -> 200 (0.5 year / 4 years) = 25 blAPY

Together, these metrics will form the basis for evaluating each user’s proportion of additionally earned rewards. Users who stake larger amounts of APY tokens for longer durations will be assigned more blAPY, and thus earn more rewards as a result.

Users will be able to select a boost-lock duration between 1 week -> 4 years in 1 week increments. Users will also be able to stake additional APY, and increase the lockup duration of their staked tokens over time.

Users will be able to stake their tokens for a maximum duration of 4 years, and users with the largest boost-lock scores will be able to earn a minimum boost of 1x without any boost-locking, and a maximum of ~2.5, based on the following formula:

min( AccountValue * 40 / 100 + (TVL * blAPY Balance / blAPY Total Supply) * 60 / 100), AccountValue)

‘blAPY’ represents the placeholder token users will receive in exchange for their boost-locked APY, representative of their boost-locked position.

‘AccountValue’ is a weighted average between the user’s total account value and the proportion of the TVL as given by their blAPY share.

The additional APY yield will be emitted via our already existing Liquidity Provision Rewards program. If Liquidity Mining incentives cease in the future, blAPY can be incentivized in other ways. Users will be able to withdraw all locked APY if boost-locking and blAPY is phased out for any reason, including as a result of governance votes on the matter as the platform continues to decentralize.

Benefits

A boost lock allows users who are more committed to the long-term vision of APY.Finance to be rewarded with additional APY.

Locked APY Tokens can be used to vote in governance proposals.

Boost-locking can open the door for further incentivization mechanisms in the future.

Vote

This proposal has two options, you can choose to vote Yes or No

Yes

A Boost Locking option will be added to the APY.Finance platform and boost locked APY will receive a boost for the period of the lock time.

No

No action will be taken