🔒STAKING PROGRAM
Last updated
Last updated
Date of Last Update: January 29, 2024
Welcome to the Houdini Swap Staking Program. Our innovative, fully funded and sustainable program is designed to reward you for long-term holding of $LOCK while also enhancing the overall value of Houdini Swap's ecosystem.
Staking $LOCK earns additional $LOCK as rewards. Rewards earned this way are intended to encourage $LOCK staking and so contribute to the stability and value of the token's ecosystem.
The Staking Program is fully funded and self-sustaining. It is funded from the fees Houdini Swap accrues from our exchange partners which are utilised to buy back $LOCK on-market.
This happens via an integrated buy bot, with buybacks executed on Solana where $LOCK-SOL is bought continuously, randomly and in small quantities.
$LOCK-SOL is then bridged to $LOCK on Ethereum each week with bridged $LOCK automatically deposited into the staking contract, which then allocates their distribution to stakers.
To further enhance $LOCK value, a portion of total token supply, approximately 7.7M LOCK or 7.7% of total supply, accrued from buybacks in the previous staking program as well as penalty fees applied for early withdrawal are burnt on a regular basis.
The combination of the buyback mechanism and the regular token burns makes the Staking Program inherently deflationary. Reducing overall supply over time like this results in increases in demand, and with it, associated value.
Rewards are allocated to stakers based on their proportional stake in the pool meaning that the larger the stake a staking participant holds, the greater their share of the rewards.
The distribution of $LOCK buybacks as rewards occurs over a 7-day period with the process executed in a smooth, per-second ‘dripping’ sequence to ensure a consistent distribution of rewards.
The staking smart contract adds $LOCK accumulated from the previous 7-days to the staking distribution pool, which occurs each Monday at 08:00 UTC
These $LOCK rewards are then distributed to stakers over the following 7 days
APY is calculated real-time but refreshed on the staking dashboard every 30 seconds
The relationship between Houdini Swap's transaction volume and the value of staker rewards is directly correlated. The value of buybacks is intrinsically linked to the fees earned from exchanges, making fees and the value of staking rewards dynamic in nature. As our transaction volume grows, so too do the fees earned from exchanges. This increase in fees subsequently boosts the value of buybacks, which in turn amplifies the value of rewards distributed to stakers.
Staking participants have flexible withdrawal or unstaking options. Unstaking is structured as a “trigger-based” withdrawal system, where you actively choose when to unstake your $LOCK. Unstaking requires 100% of the total staked balance to be unstaked.
Stakers provide a 90-day notice period. During this time, the staked tokens remain locked and no further rewards are accumulated. Following the notice period, stakers are eligible to claim both their initially deposited $LOCK and the $LOCK rewards accumulated up to when they gave notice.
Allows stakers seeking to instantly unstake their $LOCK. In order to do so a 25% penalty is applied to their total staked balance, meaning this includes both deposited $LOCK and any $LOCK rewards earned.
The 25% withdrawal penalty is distributed to benefit our Houdini Swap ecosystem:
60%, is redirected back to the staking pool, increasing the reward pool for remaining stakers.
Token Burn - 20%
Consistent with our deflationary token model, 20% of the penalty is burnt on a weekly basis, contributing to the reduction of overall token supply.
Treasury - 20%
The remaining 20% of the penalty is allocated to the treasury, supporting the platform's growth and development.
The additional rewards from penalties are distributed to the staking pool over a 30-day period in a per-second ‘dripping’ sequence.
In order to participate in the Staking Program you must understand, accept and comply with our Terms of Service, which can be found by clicking the link below.
