It is high time to unveil the secret of the new staking on Synapse Network. In this article, we will explain its details and dispel any doubts, as the functionality itself is still being refined from a technical point of view.
We listened carefully to our community and therefore we tried to address the following aspects:
- long-term, multi-level rewarding stackers with increasing stacking time
- preventing & bypassing the system by inserting, for example, 1 staking token today, getting Diamond Hands after a month, and then adding the remaining 99,999 tokens
- counteracting inflation
- adequate rewards depending on the time
- rewarding people who have been with us longer in the current (aka “old”) staking.
Key design assumptions
Therefore, we have prepared for you many versions of staking called paths. Each track has different bonuses, for example, these are:
- High APR path — maximizing APR at the expense of allocation size
- High allocations path — maximizing allocation at the expense of APR
- Balanced path — where you increase both APR and allocation size.
- Only allocations path — where you have 0% APR and high allocations.
Each path will have multiple levels that can be achieved each staking month. Each level will increase the bonuses the staker gets. In other words, the longer you are with Synapse Network the bigger and more interesting bonuses await you.
To prevent bypassing of the reward system, each stake will be counted separately and the period and rewards — both APRs and multipliers for allocation points — will be applied to it separately. This means that the user will be able to choose multiple paths in parallel and be on multiple levels with different numbers of tokens.
Note that there are more than 4 paths, and the APR allocation points here are only examples.
So let’s look at an example to better illustrate this:
- staking path High APR on 1st level gives you 20% of APR and 1x multiplier to SNP points
- staking path High APR on 10th level gives you 50% of APR and a 1.2x multiplier to SNP points
- staking path High allocations on 1st level gives you 5% of APR and a 1.1x multiplier to SNP points
- staking path High allocations on the 10th level gives you 10% of APR and a 1.8x multiplier to SNP points
- staking path Only allocations on 1st level gives you 0% of APR and a 1.2x multiplier to SNP points
- staking path Only allocations on the 10th level gives you 0% of APR and a 2.5x multiplier to SNP points
Please note that there are more variables at every level as also the unstake time and unstake fee is customized.
Allocation points calculation example:
If someone has tokens locked on multiple levels at the same time or on multiple paths, the sum of tokens multiplied by the allocation multiplier will be used to calculate the allocation. So let’s take a look at an example:
I have token staked on the following paths and levels:
- 1000 tokens — 1st level of path High APR path, — multiplier 1x = calculates to 1000 SNP Points
- 1000 tokens — 10th level of path High APR path, — multiplier 1.2x = calculates to 1200 SNP Points
- 1000 tokens — 1st level of path High allocations path, — multiplier 1.1x = calculates to 1100 SNP Points
- 1000 tokens — 10th level of path High allocations path, — multiplier 1.8x = calculates to 1800 SNP Points
So even though I staked only 4000 tokens, it calculates as 1000+1200+1100+1800 = 5100 SNP Points, so I have 27.5% of allocation points as a bonus for long-term staking.
Rewards for the long-term stakers
As promised we remember about people who are with the Synapse Network project long-term and pack tokens. Especially for them, we have prepared additional opportunities.
This opportunity is automatic, without the need to wait, reaching a certain level of the selected path. This will be possible only once and for each person, the achievable level will be calculated based on his activity in the old staking system.
For example, John has been staking SNP for 4 months on BSC. Because of that he will be able to immediately achieve 4th level on the chosen path.
Incentives for newcomers while fighting the inflation
Synapse Network is scaling all the time and as a result, our community is growing. One of the key aspects we face is attracting as many new investors as possible. To do this we have a whole system of incentives for new investors. We will allow anyone to jump on any staking level with the assumption that the total unstake time will be equal to the time it takes to reach a given level.
This way, if you commit to a long term relationship with Synapse Network, you will be able to get high rewards right away, however, you will not have the ability to pull.
So to give you an example — everyone will be able to jump on e.g. level 6 of a path if they declare that they will block tokens for the time needed to reach level 6, i.e. 6 months.
About Synapse Network
Synapse Network is developing a cross-chain investment and start-up acceleration ecosystem based on blockchain technology to give everybody an equal chance to contribute to great upcoming projects and to do so early on. We are bridging the gap between the traditional & crypto market. The idea of the Synapse Network technology goes beyond the standard offer of launchpads available on the market, becoming a true technological brand providing tech solutions.