🔒STAKING PROGRAM
Date of Last Update: 11 February, 2025
Overview
Staking $LOCK earns additional $LOCK as rewards.
The Staking Program is fully funded from fees Houdini Swap accrues from our exchange partners which are utilised to buyback $LOCK on-market.
10% of fees earned in this way is allocated to fund staking.
This occurs 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.
How The Staking Program Works
Rewards Allocation
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.
Smooth Distribution Sequence
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
Unstaking
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.
Option 1: 14-Day Notice, No Penalty
Stakers provide a 14-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.
Option 2: Immediate, With Penalty
Allows stakers seeking to instantly unstake their $LOCK. In order to do so a 14% penalty is applied to their total staked balance, meaning this includes both deposited $LOCK and any $LOCK rewards earned.
Penalty Distribution
The 14% 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.
Smooth Distribution
The additional rewards from penalties are distributed to the staking pool over a 30-day period in a per-second ‘dripping’ sequence.
Terms of Service
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.
▪️Terms of ServiceLast updated