Staking Pool Update & Migration
“Growing pains”
Over the last three months, we have seen positive levels of buy pressure, price support, and supply expansion at a steady price regardless of the movement of the general crypto market. Although experimental, the logic of the current Staking Rewards Pool V2 has produced optimistic results, continuing to outperform ETH/BTC and the rest of the market. To be completely honest, we did not expect such a steep rise in demand from our ecosystem contributors as well as other market participants before we released more of the updates.
Our Logic
Through the V3 update of our staking pool, we hope to clarify our logic for the original staking pool V2 which was created by forking, modifying, and then back-testing a Synthetix staking contract that we implemented into part of the functionality. The implementation was a bit raw but it showed that we were pretty close to the actual result in our hypothesis on how the market supply vs. demand would create the initial expansion in supply as a reaction to market actors creating both price movement and the logic of the staking pool and the rebase tax (10%).
Tracing its development within the DeFi space, it took us months to wrap our head around rebaser functions, price supports, and how to incentivize support after a short contraction to create resistance via the staking pool. The pool used simple game theory which was designed to create a feedback loop, which makes it so that the rewards far outweigh the fear that leads to steeper contractions through the added depth via sell orders.
V2 exceeded our expectations but we still felt that some things needed to be changed in order to demonstrate how each iteration of our staking pool would have considerable improvements. This signals, naturally, that the community of LPs would migrate to V3, starting a new cycle of expansion/contraction based on the newly modified parameters meant to incentivize market actors to participate in providing more liquidity, which should theoretically allow for the continued and consistent growth of the network.
Staking Pool Parameters
The origin of Auric Network’s staking contract follows the same three parameters required for the Synthetix staking contracts. These include the duration of the staking pool, amount of tokens added to the staking pool, and percentage of the second parameter. The staking rewards pool was built by building on these three specifications and customizing the contract to fit our needs. The logic of the staking contracts are focused on incentivizing stakeholders to continue staking in the event of a drastic drop in price or even the triggering of a negative rebase(event=rewards > loss of price/supply). The intention was to create a community support system that would induce liquidity providers to continue staking even when we reached initial maximum demand thresholds on market.
Staking Rewards Pool V2 (AKA Gold Rush V2) constitutes a perpetual staking contract that would hypothetically never run dry of rewards insofar as an injection of tokens were made regularly, and given the fact that the contract would be versatile enough to adjust for the dynamicity of rebasing tokens.
Staking Pool V2 was designed to adhere to the following parameters:
- 14 day distribution period for distribution of total amount in the pool.
- 20% of ALL rewards claimed by LPs are collected as a tax, then reinjected into 4 pools:
- Governance Pool (controlled by onchain community governance)
- Auric Dao Fund (controlled by onchain community governance)
- Dev Pool(Our crumbs)
- Reinjected into the Staking Pool V2
3. 10% of all POSITIVE rebases are taxed and then re-injected into the Staking Pool V2.
4. The distribution time is reset every 14 days if any new injection or tokens is added to the rewarder for the pool.
Although our intended logic for Staking Rewards Pool V2 (AKA Gold Rush V2) was what some would call successful and served its key functionalities as intended, we are deploying Staking Rewards Pool V3 (AKA Gold Rush V3) with an update as per our roadmap and as a precautionary measure to mitigate potentially abrupt deviancies occurring to the smoothing of the curve. We have designed the new staking pool to operate more efficiently, at scale, by adhering to the following parameters.
- 10 day distribution period for distribution of total amount in the pool.
- 20% of ALL rewards claimed by LPs are collected as a tax, then re-injected into 4 pools:
- Governance Pool (controlled by community governance)
- Auric Dao Fund (controlled by community governance)
- Dev Pool
- Re-injected into the Staking Pool V3
3. 10% of all positive rebases are taxed and then reinjected into the Staking Pool V3.
4. The distribution time is reset EVERY time a new injection of tokens is added to the rewarder for the pool (This means every positive rebase, and every time a reward is mined).
In Conclusion
As part of our evolution from a single blockchain based network to our ultimate goal of being blockchain agnostic, Auric Network will leverage existing technologies such as a modified version of cross chain bridges that accommodate to the elastic supply characteristic across multiple infrastructures (both L1 and L2) supporting IBC. We are now stepping into the second phase of development to create the only hyper-liquid currency that rebases across multiple blockchains. We will be announcing more information pertaining to these updates in the near future. This is barely the beginning…..
About Auric Network
Auric Network (AUSCM) is a synthetic commodity money that is not dependent on the current world-based currency as the goal price or value. Instead, Auric relies on the centuries-old currency of all currencies, or store-of-value: gold.
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Disclaimer: AUSCM is not an investment product. It is not intended in its design or distribution to be utilized as a form of investment, speculation, or a financial product. No communications from Auric Network Limited to users constitute financial advice, a solicitation for investment, or a guarantee of a financial return. Please do your own research and investigation before participating in this project.
