Announcing the Cap Lift on our Parachain Vault Strategy, Rewards for the third week, and Lock-up Incentives
We are lifting the caps on our vault strategy starting on Tuesday July 13th at 10am CET, allowing additional participation in our methodology.
We are introducing additional incentives for this third week of the strategy, as we transition to uncapped vaults. 0.7% of the native Composable (LAYR) token supply will be distributed to stakers throughout the third week, as soon as the caps are lifted.
We are also introducing a lock contract for pAT to boost earned Composable Tokens by 25%.
Sometime in the third week of our parachain auction strategy deployment, we will be releasing a lock contract for our parachain Auction Tokens (pAT, our receipt tokens memorializing participation in our strategy). There, users will be able to lock up their pAT, which prevents withdrawal for 90 days.
This lockup results in a 25% boost on users’ earned Composable Tokens (based on nominal amount), vested over one year. As an additional bonus, these staking participants will have first access to our parachain vault strategy launchpad, which is where we will extend our vault strategy for use by other projects seeking to earn DOT/KSM to purchase their own parachain. The structure will be the same in our offering to other protocols, delivering another means for users to be rewarded for participating in parachain procurement.
These participants will also have early access to other strategies that we are planning to launch; we have a variety of innovative partnerships that will be announced in the future, wherein we will create new and valuable opportunities for our users.
We will be announcing further incentivization programs for distribution over the lock period when the lock contract is released.
A recap of our parachain vault strategy:
To receive and maintain a parachain, it must be purchased in an auction with the chain’s native DOT/KSM. There is normally an opportunity cost to users, who miss out on potential staking rewards when they contribute these tokens.
To maximize our chances of winning a parachain slot while avoiding the opportunity cost to contributors, we are working to reward users who help us stake KSM/DOT with a novel ETH vault strategy. Users deposit an ERC-20 token to our vault, where the deposit is yield farming, with half the profits being used to purchase KSM/DOT and the other half being returned to users and used to increase their staking position.
With these additional boosts related to our parachain vault strategy, we not only eliminate the opportunity cost generally associated with participating in parachain procurement, but also provide further valuable opportunities to our users.
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