Long-term protocol users can profit from SERP Awards, which come in the form of escrowed SERP and multiplier points.
There are two options for rewards on https://app.______/#/earn: "Compound" and "Claim".
Compounding will stake your escrowed SERP rewards and awaiting Multiplier Points, increasing the total amount of rewards you earn.
Any pending Escrowed SERP and ETH rewards will be sent to your wallet upon claim.
You can later unstake your Escrowed SERP tokens for vesting if you compound or stake them.
Escrowed SERP (esSERP) can be used in two ways:
- 1.Staked for rewards similar to regular SERP tokens
- 2.Vested to become actual SERP tokens over a period of one year
Each staked Escrowed SERP token will earn the same amount of Escrowed SERP and ETH rewards as a regular SERP token.
Note that Escrowed SERP (esSERP) is not meant to be transferrable unless you are doing a full account transfer. The amount of SERP or VENOM required to vest esSERP is unique per account and capped to the rewards received by that account. Please do not buy esSERP off the market or OTC as you will not be able to vest them.
Escrowed SERP (esSERP) tokens can be converted into SERP tokens through vesting, this can be accessed on the Earn page.
When vesting is initiated, the average amount of SERP or VENOM tokens that was used to earn the esSERP rewards will be reserved.
For example, if you staked 1000 SERP and earned 100 esSERP tokens, then to vest 100 esSERP tokens, 1000 SERP tokens will be reserved. To vest 50 esSERP, 500 SERP tokens will be reserved. Note that this is an example and the actual ratio depends on the average staked amount and rewards earned for your account.
esSERP tokens that have been unstaked and deposited for vesting will not earn rewards. Staked tokens that are reserved for vesting will continue to earn rewards.
After initiating vesting, the esSERP tokens will be converted into SERP every second and will fully vest over 365 days. esSERP tokens that have been converted into SERP are claimable at anytime.
If a user sells SERP or VENOM tokens and would like to vest their esSERP rewards later on, they would need to re-buy the SERP or VENOM tokens. SERP, esSERP and Multiplier Points can be used interchangeably for the required reserve amount.
Depositing into the vesting vault while existing vesting is ongoing is supported.
Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve the tokens, use the "Withdraw" button on the Earn page. Partial withdrawals are not supported, so withdrawing will withdraw and unreserve all tokens as well as pause vesting. All esSERP tokens that had been vested into SERP will remain as SERP tokens.
Multiplier Points reward long term holders without inflation.
When you stake SERP, you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 SERP 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 boost ETH / AVAX APRs at the same rate as a regular SERP token.
When SERP or Escrowed SERP tokens are unstaked, the proportional amount of Multiplier Points are burnt. For example, if 1000 SERP is staked and 500 Multiplier Points have been earned so far, then unstaking 300 SERP 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 the Earn page.
The "Boost Percentage" shown on the Earn page shows your individual boost amount from Multiplier Points. For example, if the ETH APR is 10% and you have $10,000 worth of SERP and esSERP, then your rewards would be $1000 annualized, if you additionally have an amount of Multiplier Points equivalent to 20% of your total amount of SERP and Escrowed SERP, 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 SERP:
Boost Percentage = 100 * (Staked Multiplier Points) / (Staked SERP + Staked esSERP)
100 * (4.5656) / (7.54 + 2.00) = 47.85%
A summary of rewards and mechanics:
- SERP: earns ETH, esSERP, Multiplier Points when staked
- esSERP: earns ETH, esSERP, Multiplier Points when staked
- Multiplier Points: boost ETH APRs when staked
- VENOM: earns ETH, esSERP, automatically staked on mint