Compound staking lets users automatically grow their returns by reinvesting earned rewards back into a shared pool (called the Vault). This creates a compounding effect — your rewards generate more rewards over time.
Core Principles
1. Daily Rewards and Compounding
- Rewards are calculated daily based on the pool’s Annual Percentage Yield (APY).
- Compounding happens whenever a user interacts with the pool, such as making a deposit, withdrawal, claiming rewards, or triggering a harvest.
2. Harvesting and Reinvestment
- Any user can trigger a harvest, which collects rewards for the entire Vault.
- A small portion of the harvested rewards (e.g., 0.25%) goes to the user who triggered the harvest as an incentive.
- The remaining rewards are reinvested into the Vault, increasing the total balance and boosting future rewards for all participants.
3. Lock Period
- Each pool has a lock period (e.g., 30 days) during which withdrawals are restricted.
- After the lock period ends, users can withdraw both their original stake and the compounded rewards.
4. NFT Reward Boost
- Users holding eligible NFTs receive a multiplier on their rewards (e.g., 2x).
- The multiplier is applied during withdrawal or reward claims, increasing the user’s share of the total rewards.
5. Proportional Distribution
- Rewards are distributed proportionally based on each user’s share of the Vault.
- For example, if a user owns 10% of the Vault, they receive 10% of the rewards (adjusted for any NFT multiplier).
Example
| User | Deposit (tokens) | Vault Share (%) |
| User A | 100,000 | 40% |
| User B | 50,000 | 20% |
| User C | 100,000 | 40% |
| Total Vault Balance | 250,000 |
- A harvest is triggered, and the Vault earns 82 tokens that day.
- 0.25% (≈0.205 tokens) goes to the user who triggered the harvest.
- The remaining 81.79 tokens are reinvested into the Vault, increasing the total balance.
After the lock period ends, users can withdraw:
- Their proportional share of the updated Vault balance.
- Any additional bonuses from NFT multipliers.
Why It Matters
- Returns increase automatically over time through compounding.
- Users are incentivized to interact with the pool (e.g., harvesting), benefiting everyone.
Rewards grow faster than in fixed staking models thanks to the power of compounding.
FAQ — Compound Staking Made Simple
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Q1: What is compound staking?
A1: It’s a way to grow your earnings automatically by reinvesting rewards into the pool.
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Q2: When can I withdraw my tokens and rewards?
A2: After the lock period ends, you can take out both your original stake and your rewards.
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Q3: What is the harvest bounty?
A3: A small bonus paid to anyone who triggers the daily reward reinvestment (harvest).
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Q4: How do NFTs boost rewards?
A4: Holding certain NFTs multiplies your rewards when you claim or withdraw.
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Q5: Can I trigger the harvest myself?
A5: Yes, and you get rewarded for helping the system.
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Q6: What if nobody triggers the harvest?
A6: Rewards accumulate but won’t grow until someone triggers it, slowing your earnings.
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Q7: Does interacting with the pool trigger compounding automatically?
A7: Yes, deposits, withdrawals, claims, or harvests will compound your rewards.
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Q8: Can I lose my staked tokens or rewards?
A8: No, your tokens are safe, but rewards grow faster with regular compounding.
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Q9: Why is compounding better than fixed APY?
A9: Because your rewards earn rewards too, speeding up growth.
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Q10: How do I know if my NFT qualifies for a boost?
A10: Check the pool’s info — eligible NFTs will be listed there.
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