Urus Staking Contract
Users can stake their Urus tokens at anytime. Simply by purchasing the tokens on Uniswap, and then locking up their tokens into the USC (Urus Staking Contract), they'll be able to earn more Urus tokens.
Users who enter a USC can’t withdraw the rewards until the end of the contract. Think of this as a savings account. If a user closes the contract before its end, they will be charged a penalty on the principal tokens. The tokens will be rerouted and given as rewards to other stakers who did not close their contract early. Further rewarding users who support the Urus project.
This is works out as follows:
The fee will be calculated depending on the percentage of the completion of the stake.
For example: if they locked in their tokens for 1 year (12 months), but closed the contract in 1 month. They only completed 8% of their original contract and therefore, 46% of the principal tokens in the contract will be deducted as a fee. (Max deduction fee is 50%)
The penalty fee will be redistributed equally to everyone with an open staking contract, further rewarding these users.
Distribution of the tokens after the staking contract has ended will be over a course of 2 weeks.
For example, if the user locked in their tokens for 1 year, and after 1 year, the contract ends. The user will be able to withdraw their tokens over a course of 2 weeks, or they can withdraw it all after the entire 2 week period is up to save on gas fees.
This is to combat massive dump cycles after every staking contract ends.
The user will be able to select staking in increments of 1 month. Therefore, if a user would prefer, they can decide stake tokens for 1, 2, 3, 4, 5, etc.. months. This can be done for up to a maximum of 7 years. The users that stake their tokens for 1 year or more will be able to opt-in to have their yield compound, further driving up the yield.
The interest rate rewarded to users who participate in the Urus Staking Contract is calculated based on the number of months the user locks in their Urus tokens. The formula to calculate this will be:
Interest rate per year = month * 0.5
Maximum of 20% APY.
Maximum of 7 year staking.
For example, if a user locks in Urus tokens for 12 months, they will receive 6% APY (12 months * 0.5).
Yield miners will also have the ability to earn bonuses on the tokens they generated via the staking contract. Users can stake their yield reward tokens into a Urus Staking Contract (USC). This will allow them the opportunity to earn even more Urus rewards than just the stakers.
There is a maximum of 200,000 Urus tokens available to stakers. The Urus tokens are reserved into the smart contract when a stake executes, meaning it will be on a first come first serve basis. Once all the tokens are reserved, the staking contract will no longer be available.
We might in the future deposit more Urus tokens into the staking contracts by purchasing tokens off of the market using profits generated by the business and reopening staking.