Staking options & calculating rewards

Inspired by the previously launch of Merit Circle and its $MC token, we decided to follow a similar structure of calculation for the liquidity mining rewards. This model perfectly rewards long-term stakers since there is a time-weighted element for calculating the rewards. After the launch, all token holders (except locked tokens) will be able to stake the tokens within two pools:

  • LOOT → Single-sided staking pool. This pool will receive 20% of the liquidity mining rewards.
  • LOOT/ETH LP → Liquidity pool is composed of 50% LOOT and 50% ETH. This pool will receive 80% of the liquidity mining rewards.

There are two different methods to stake as well. One is the Flexible (unlocked) method, and the other one is Locked. Each will have different reward formula.

Flexible = LOOT staked * 1

Locked = LOOT staked * ( 1 + X/52)

Locked has a Time-weighted Ratio where X is the number of weeks you lock in.