💸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.
Compounding vs Claiming
There are two options for rewards on https://app.tender.fi/earn: "Compound" and "Claim".
Compounding will claim and stake your pending TND, Multiplier Points and Escrowed TND rewards, this will increase the amount of protocol revenue share you will receive.
Claiming will transfer any pending TND rewards and esTND rewards to your wallet.
If you compound or stake your esTND tokens, you can unstake them for vesting at anytime later on but will lose multiplier points for doing so at a ratio of the % you unstaked. For example if you have 90 TND staked and 10 esTND staked and you choose to unstake your esTND in order to vest, you will lose 10% of your multiplier points.
Escrowed TND
Escrowed TND (esTND) can be used in two ways:
Staked for rewards similar to regular TND tokens
Vested to become actual TND tokens over a period of one year
Each staked esTND token will earn the same amount of esTND and ETH rewards as a regular TND token would earn from being staked.
Note that Escrowed TND (esTND) is not meant to be transferable unless you are doing a full account transfer. The amount of staked TND, esTND and multiplier points required to vest esTND is equivalent to the total amount of esTND you would like to vest.
Multiplier Points
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 esTND 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. (coming soon)
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%
Distribution Rate
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.
Summary
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
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