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.
Escrowed TND (esTND) tokens can be converted into TND tokens through vesting; this can be accessed on the Earn page.
Vesting terms are currently being discussed by the TND holders in the Telegram chat.
If you hold over 100TND (or staked TND) you are eligible to participate: https://guild.xyz/tenderfi
Once terms have been decided upon- they will be announced.
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.
Multiplier points can be staked for fee rewards by pressing the "Compound" button on the Earn page, each multiplier point will earn the same amount of TND rewards as a regular TND token.
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.
To transfer staked tokens without burning Multiplier Points, use the Transfer button on https://app.tender.fi/earn.
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
For diagram of the reward contracts and mechanics see here: https://app.diagrams.net/#G1y5IT8sAG7AgEcBZPkEYiMRupHjsaS_TB