Rewards & Incentives
TND Rewards provide benefits for long term users of the protocol, these rewards come in the form of Escrowed TND and Multiplier Points.
There are two options for rewards on https://app.tender.fi/earn: "Compound" and "Claim".
Compounding will stake your pending Multiplier Points and Escrowed TND rewards, this will increase the amount of rewards you receive.
Claiming will transfer any pending Escrowed TND rewards and TND rewards to your wallet.
If you compound or stake your Escrowed TND tokens, you can unstake them for vesting at anytime later on.
Escrowed TND (esTND) can be used in two ways:
- 1.Staked for rewards similar to regular TND tokens
- 2.Vested to become actual TND tokens over a period of one year
Each staked Escrowed TND token will earn the same amount of Escrowed TND and TND rewards as a regular TND token.
Note that Escrowed TND (esTND) is not meant to be transferable unless you are doing a full account transfer. The amount of TND required to vest esTND is unique per account and capped to the rewards received by that account. Please do not buy esTND off the market or OTC as you will not be able to vest them.
When vesting is initiated, the average amount of TND tokens that was used to earn the esTND rewards will be reserved.
For example, if you staked 1000 TND and earned 100 esTND tokens, then to vest 100 esTND tokens, 1000 TND tokens will be reserved. To vest 50 esTND, 500 TND tokens will be reserved. Note that this is an example and the actual ratio depends on the average staked amount and rewards earned for your account.
esTND tokens that have been unstaked and deposited for vesting will not earn rewards. Staked tokens that are reserved for vesting will continue to earn rewards.
After initiating vesting, the esTND tokens will be converted into TND every second and will fully vest over 365 days. esTND tokens that have been converted into TND are claimable at anytime.
If a user sells TND tokens and would like to vest their esTND rewards later on, they would need to re-buy the TND tokens. TND, esTND and Multiplier Points can be used interchangeably for the required reserve amount.
Depositing into the vesting vault while existing vesting is ongoing is supported.
Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve the tokens, use the "Withdraw" button on the Earn page. Partial withdrawals are not supported, so withdrawing will withdraw and unreserve all tokens as well as pause vesting. All esTND tokens that had been vested into TND will remain as TND tokens.
Multiplier Points reward long term holders without inflation.
When you stake TND, you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 TND staked for one year would earn 1000 Multiplier Points.
When TND or Escrowed TND tokens are unstaked, the proportional amount of Multiplier Points are burnt. For example, if 1000 TND is staked and 500 Multiplier Points have been earned so far, then unstaking 300 TND would burn 150 (300 / 1000 * 500) Multiplier Points. The burn will apply to the total amount of Multiplier Points which includes both staked and unstaked Multiplier Points.
The "Boost Percentage" shown on the Earn page shows your individual boost amount from Multiplier Points. For example, if the TND APR is 10% and you have $10,000 worth of TND and esTND, then your rewards would be $1000 annualized, if you additionally have an amount of Multiplier Points equivalent to 20% of your total amount of TND and Escrowed TND, your "Boost Percentage" would display as 20%, and you would get an extra $200 of ETH rewards annualized. The “Boost Percentage” is calculated from the ratio of Multiplier Points to your total amount of staked TND:
Boost Percentage = 100 * (Staked Multiplier Points) / (Staked tND + Staked esTND)
An example: 100 * (4.5656) / (7.54 + 2.00) = 47.85%
Rewards are distributed every second to staked tokens.
Reward rates will be evaluated each month and may be subjected to changes. Any modifications will be announced at least 7 days in advance before being implemented.
A summary of rewards and mechanics:
- TND: earns ETH, esTND, Multiplier Points when staked
- esTND: earns ETH, esTND, Multiplier Points when staked
- Multiplier Points: earns ETH when staked leading to higher TND APRs