Earn - Simple Staking
Overview
There are numerous ways to ‘Earn’ on Elys network. Elys Network allows you to use different tokens that you hold, and earn rewards for your participation in various programs. Each program that a user can partake in, is enabling another part of the product, which in turn results in rewards distributed back to user. Three of these programs that a user can participate in are:
USDC Earn
ELYS Staking
Commitment
These programs are accessible in the Earn>Simple Staking option on the Elys DEX. Each of these programs are expanded upon in more detail below.
To ensure that the ELYS token supply remains low, Elys Network has a unique reward structure that utilizes non-inflationary system reward distribution, paid out in USDC, as well as a new token EDEN. EDEN is a vesting inflationary reward token that allows users to:
Receive additional non-inflationary system rewards
Redeem it for 1:1 ELYS tokens linearly over a 90 day period
EDEN & EDEN BOOST
There are two additional native tokens in the Elys Network that are important to understand. Please refer to this page for a detailed overview on EDEN and EDEN BOOST.
Simple Staking
The ‘Simple Staking’ screen within the Earn navigation bar header is where users can manage their participation in any of the Simple Staking reward programs. At launch, Elys will offer three different simple staking programs:
USDC Earn ('Stake USDC') - USDC Earn allows users to lend their USDC to other users who are interested in using that USDC in Leverage Liquidity Providing (Leverage LP). For allowing others to utilize this USDC, the lenders will earn rewards from APR paid by the borrower.
ELYS Staking ('Stake ELYS') - Users can secure the network by staking their ELYS tokens to any active validator. By doing so, these users will earn a combination of temporary inflationary rewards (paid out in EDEN), and non-inflationary rewards accrued via system income, which is paid out in USDC.
Commitment ('Stake EDEN', 'Vest EDEN', 'Stake EDEN BOOST') - Users can use their earned EDEN tokens (as earned from ELYS Staking, or by providing Liquidity) and do the following actions:
Commit them to the network
Vest them
See here for additional details on these actions.
Users can also use their earned EDEN BOOST and commit them to the network for additional rewards.
USDC EARN
The USDC Earn program allows users with USDC in their wallet to lend that USDC to others to be used for providing liquidity via the Leverage LP function. By lending your USDC, others that are interested in using that USDC can borrow it to increase their Liquidity size position (and therefore the rewards they can earn by doing so).
Users who partake in this program and lend their USDC will be able to earn both USDC and EDEN as rewards.
USDC APR = Interest Rate * % pool used.
EDEN APR = This is based on a governance parameter that determines how much EDEN is automatically distributed to LPs
To partake in this program, a user would ‘stake’ their USDC. Once the USDC is staked, it is then available to be used via Leverage LP. If a user wants to un-stake their USDC from this program, only the USDC which hasn’t been used in Leverage LP can be withdrawn. The protocol will keep a cap on how much can be borrowed from the USDC pool at any time.
A user won’t be able to un-stake and withdraw all of their staked USDC IF it is being used in Leverage LP. Elys helps mitigate this by increasing the EDEN incentive rewards if there is high usage of the pool. This would incentivize more people to deposit USDC, which in turn will bring down the usage and allow more USDC to be eligible for un-staking and withdrawal.
ELYS Staking
The Elys Staking program allows users to stake their ELYS tokens to any active validator. Directly from the Elys DEX, users can stake, re-delegate from one validator to another, un-stake, and cancel un-staking requests.
Users who partake in this program and stake their ELYS will be able to earn USDC, EDEN, and EDEN BOOST as rewards.
USDC APR = 30% of all incoming System Rewards will be distributed to all active stakers.
EDEN APR = This is based on a governance parameter that determines how much EDEN is automatically distributed to active stakers.
EDEN BOOST APR = Set to 100%.
If ELYS is unstaked then EDEN-Boost is burned (both ‘committed’ and ‘uncommitted’) in proportion to the amount of ELYS unstaked compared to the total ELYS staked or EDEN committed by the user”
Users are able to submit an unstaking request at anytime. The length of time that ELYS would sit in this un-bonding status (no longer earning any rewards) is determined based on a governance parameter.
Commitment
The Elys Commitment program allows users to stake their EDEN tokens in order to earn additional rewards, and allows users to vest their EDEN for ELYS.
Staked EDEN acts the same as staked ELYS in terms of reward distribution. Refer to the above section on staked ELYS for reward breakdown. However, staked EDEN has no unbonding time, while staked ELYS does.
Vested EDEN can be redeemed for 1:1 to ELYS linearly over a 90 day period. So those who vest their EDEN, will receive the exact same amount in ELYS. For additional details on the vesting process & timeframe, refer here.
Since users who partake in this program and stake their EDEN will earn the same reward structure at staked ELYS, this means staked EDEN will be able to earn USDC, EDEN, and EDEN BOOST as rewards. Again, refer to the above for a detailed breakdown on this.
Users may also choose to commit their EDEN BOOST for even more rewards. Commited EDEN BOOST will also act like Staked ELYS in terms of reward distribution, with the exception that it will not earn additional EDEN BOOST.
Claiming Rewards
Users may submit a claiming request per program for their earned rewards at any time. Simply go to the Earn>Simple Staking page and click on any of the ‘Claim Rewards’ buttons. Once a user initiate this process, a modal will appear that shows a breakdown of earned rewards, by token, for that program. Once a user clicks claim, those tokens will be deposited into their wallet immediately.
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