๐งSoy Staking V2
Note: This article was updated on 17 May 2023 to reflect significant changes to the SOY Cold Staking mechanism.
Please see Appendix: "Updates to Cold Staking" for the latest information.
Summer was hot and the Soy Finance team has been busy designing something new and exciting for the Soy Finance community!
Naturally, since we are talking about DeFi, it goes without saying that profitability must be forefront. Still, with the ups and downs of the market, it is crucial to offer Decentralized Finance tools that truly meet the usersโ needs.
Flexibility is why the Cold Staking v2 was born! Indeed, the Cold Staking v2 follows the principles of the successful v1 version, but with improvements that really change everything! :)
First of all, the minimum staking period has been reduced from one month to one week. However, 5 staking periods will now be available(1 week, 1 month, 3 months, 6 months, and 1 year) with each period having a specific reward allocation increasing with the staking period.
These are only a few examples of the improvements of the new Cold Staking. See for yourself!
Soy Staking Advantages & Characteristics
Earn rewards with one token.
No risks of impermanent losses.
No minimum or maximum deposit.
Freezing periods starting from one week.
Rewards can be withdrawn anytime.
Note 1: CLO coins are required to pay the transaction fees.
Note 2: The contract does not allow anyone to withdraw staking deposits except the staker who deposited tokens into the contract.
"Soy staking V2 takes tokenomics to a new level; The new staking pools are designed to incentivize users to stake their SOY tokens for longer periods, thus further reducing the number of SOYs in circulation. On the other hand, we also want to allow new users to discover Soy Finance with a shorter staking period. " KryptoVlada - Soy Finance CEO.
When DeFi meets Flexibility
Flexibility is not the most prevalent word in the DeFi ecosystem; staking is associated with a predefined lock period or withdrawal fees. If farming offers more flexibility, it remains limited due to the risk of impermanent loss as you need to hold two different coins/tokens and their number may change according to the price fluctuation. It is time to bring a breath of fresh air into the young world of DeFi.
As a matter of fact, Soy Finance community members expressed their wish to see a more open, affordable, and flexible passive income model, Cold Staking v2 offers more flexibility by adopting an innovative model with 3 different periods:
Pre-locking period: Starts when a staker launches the staking. During this period tokens can be added and rewards claimed at any time. The multiplier of the period selected by the staker applies.
The locking period: This period begins when a staker decides to withdraw his/her deposited tokens. The locking period initially selected by the staker will therefore start. Tokens can not be added during this period, but rewards can be claimed at any time.
Post-locking period: Once the locking period ends, the staker can withdraw his initial deposit and reward. No reward will be added during this period.
Here is a concrete example of the Cold Staking v2 process:
Step 1: A staker decides to stake his token for 1 month and deposit his fund to the smart contract. As long as the staker does not make a withdrawal request, he or she will be able to add funds and receive rewards. (Pre-locking period.)
Step 2: The staker makes a withdrawal request, his/her deposit will be locked for 1 month, and he or she will receive rewards only during the defined period of 1 month. (Locking period.)
Step 3: The staker claims his reward 2 weeks after the locking period ends. He/she will be eligible only for the rewards of the initially selected period of 1 month. (Post-locking period.)
Cold Staking v2: Locking Periods & Multipliers
By offering a freeze period starting from one week and going up to 52 weeks, or one year, as well as an hourly reward calculation interval, Cold Staking v2 meets the needs of investors looking for more flexibility.
The global Soy staking pool is allocated with a 36x multiplier which is split among five smart contracts having a specific multiplier depending on their locking period. The advantages of this mechanism are twofold:
Ensures a fairer reward mechanism. Maximize the long-term investor's reward.
The multiplier depends on the locking period selected by the staker at the time of its deposit. The longer the staking period, the greater the "multiplier" and the greater the reward.
The table below shows the multiplier value according to the locking period selected by the staker.
Cold Staking v1 VS Cold Staking v2
Appendix: Revision to Cold Staking
Towards further enhancing the sustainability of Cold Staking, we've made significant modifications to the mechanism, specifically to its locking periods and multipliers. These changes were announced on 17 May 2023.
Starting on 11 June 2023 for the 1-week staking pool and 19 May 2023 for the 1-month staking pool, the following changes will be implemented:
From these dates:
Deposits into these staking pools will no longer be possible.
It will still be possible to withdraw from these staking pools.
These pools will continue receiving SOY token rewards until their termination on 19th June 2023.
Moving forward, SOY Finance will offer staking periods of 3 months, 6 months, and 1 year.
These changes reflect our steadfast commitment to long-term sustainability and nurturing a robust, committed community. Consequently, we've adjusted the multiplier rewards for the remaining staking periods. The table below reflects these changes.
We believe these changes not only reinforce the strength of the SOY Finance ecosystem but also encourage long-term investment, reinforcing our commitment to sustainability and growth.
We appreciate your understanding and continued support.
Your Soy Finance team.
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