Within the past few years, Proof-of-Stake (POS) cryptocurrencies have gained huge relevance across the cryptocurrency space. They offer potential yield to stakers, today many POS assets offer as high as 20% APY to holders, while some offer even more. With the recent DeFi boom making a major impact across the space, staking is becoming even much bigger and better. Cryptocurrency staking is taking a whole new dimension, and we are looking to begin this major evolution through our specific Elastic Staking solution.
Heard of elastic supply? We are introducing elastic staking.
EStake is a decentralized staking mechanism designed to completely disrupt the conventional way of staking through inbuilt wallet staking. Our unique staking mechanism operates on an elastic model, to ensure that the users can net a strong return on their assets, without having to deal with the problem of decreasing APR with increasing participation in the staking pool.
Unlike conventional staking mechanisms where users are required to contribute a percentage of their holdings into a staking pool before they can start earning rewards, EStake uses an improved approach to its staking process. With EStake, staking is inbuilt in the smart contract, whereby you just have to keep your token in your wallet and earn rewards during the reward distribution event (RDE) which occurs daily at random time.
Staking rewards are fully user dependent, not pool dependent, and they vary from person to person depending on the amount of EStake tokens a user holds in his wallet and how long a user holds these tokens. Also, because EStake operates with an elastic model, % APR has been uniquely structured to increase or decrease, depending on the market situation at a particular time.
How our staking Algorithm works
Elasticity in our staking algorithm is implemented via two methods:
A) Holding Days based Elasticity
For every amount of token, you hold in your wallet, your APR depends solely on your holding capability and increases linearly with an increasing number of holding days.
Day 1 : 36%
Day 2 : 72%
Day 3 : 108%
Day N : 36xN%
At the time of RDE, our algorithm triggers a restart to the APR cycle once you sell your initially bought tokens. This means that the cycle shifts back to Day1 if you make a withdrawal from your initial holdings. However, depositing new tokens or selling the rewards won’t reset the APR cycle. Therefore, you can conveniently withdraw your daily rewards, while your deposits keeps earning you more rewards. Below is the graphical representation of the holding days based elasticity in APR.
B) Price based elasticity
In this, your APR depends upon price of EStake and Ethereum at the time of RDE. APR is positive if EStake price> Eth price factor and negative if EStake price < Eth price factor. This price based elasticity, either further increase or decrease your holding days based APR. In order to attain stability, EStake is pegged to the Ethereum basket that now contains Ethereum only. Although we plan to add more ERC tokens to the basket in the near future, to make it more robust. Below is the graphical representation of the price based elasticity in APR.
Net APR = Holding Days based APR + Price based APR
We are poised at completely revolutionising how cryptocurrency staking should operate, which is why we have built a fully decentralized staking economy that centres on providing each one of our users with an unforgettable staking experience. It is evident that decentralized staking is the future, but there is no staking economy without you. Why not join the EStake Family today?