🏆Rewards
Rewards provide benefits for long term users of the protocol, these rewards come in the form of Staked VMC and VMLP Multiplier Points.
Compounding vs Claiming
There are two options for rewards: "Compound" and "Claim".
Compounding will stake your pending Multiplier Points and Staked VMC and VMLP rewards, this will increase the amount of rewards you receive.
Claiming will transfer any pending Staked VMC and VMLP rewards and ETH / AVAX rewards to your wallet.
If you compound or stake your Staked VMC and VMLP tokens, you can unstake them for vesting at anytime later on.
Staked VMC and VMLP
Staked VMC and VMLP (esVMC) can be used in two ways:
Staked for rewards similar to regular VMC tokens
Vested to become actual VMC tokens over a period of one year
Each staked Staked VMC and VMLP token will earn the same amount of Staked VMC and VMLP and ETH / AVAX rewards as a regular VMC token.
Note that Staked VMC and VMLP (esVMC) is not meant to be transferrable unless you are doing a full account transfer. The amount of VMC or VMLP required to vest esVMC is unique per account and capped to the rewards received by that account. Please do not buy esVMC off the market or OTC as you will not be able to vest them.
Vesting
Staked VMC and VMLP (esVMC) tokens can be converted into VMC tokens through vesting, this can be accessed on the Earn page.
When vesting is initiated, the average amount of VMC or VMLP tokens that was used to earn the esVMC rewards will be reserved.
For example, if you staked 1000 VMC and earned 100 esVMC tokens, then to vest 100 esVMC tokens, 1000 VMC tokens will be reserved. To vest 50 esVMC, 500 VMC 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.
esVMC 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 esVMC tokens will be converted into VMC every second and will fully vest over 365 days. esVMC tokens that have been converted into VMC are claimable at anytime.
If a user sells VMC or VMLP tokens and would like to vest their esVMC rewards later on, they would need to re-buy the VMC or VMLP tokens. VMC, esVMC 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 esVMC tokens that had been vested into VMC will remain asVMC tokens.
Multiplier Points
Multiplier Points reward long term holders without inflation.
When you stake VMC, you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 VMC 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 VMC token.
When VMC or Staked VMC and VMLP tokens are unstaked, the proportional amount of Multiplier Points are burnt. For example, if 1000 VMC is staked and 500 Multiplier Points have been earned so far, then unstaking 300 VMC 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 https://app.vmfinance.io/#/earn
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 VMC and esVMC, then your rewards would be $1000 annualized, if you additionally have an amount of Multiplier Points equivalent to 20% of your total amount of VMC and Staked VMC and VMLP, 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 VM Finance:
Boost Percentage = 100 * (Staked Multiplier Points) / (Staked VMC + Staked esVMC)
An example:
100 * (4.5656) / (7.54 + 2.00) = 47.85%
Distribution Rate
Staked VMC and VMLP will be distributed to Staked VMC and VMLP according to the schedule in the latest snapshot votes Staked VMC and VMLP
Rewards are distributed every second to staked tokens.
Reward rates will be evaluated each month and may be subjected to changes. Any modifications will be announced at least 7 days in advance before being implemented.
Summary
A summary of rewards and mechanics:
VMC: earns ETH / AVAX, esVMC, Multiplier Points when staked
esVMC: earns ETH / AVAX, esVMC Multiplier Points when staked
Multiplier Points: boost ETH / AVAX APRs when staked
VMLP: earns ETH / AVAX, esVMC, automatically staked on mint
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