$PIXL Normal LP Protocol
The $PIXL Normal LP Protocol is similar to the single staking protocol, however instead of just supplying $PIXL to earn rewards users must supply equal parts $PIXL and ETH to the protocol and in return they recieve a higher APY%.
The normal LP protocol generates rewards on a block by block basis (as ETH is mined at the crypto level) for users of the protocol. These rewards are based on a deterministic function balancing your contribution versus the overall pool of $PIXL staked by all users and rewards you with a percentage of each total block reward generated over the duration of your time staked within the protocol combined with any Yield Enhancing NFTs that were staked alongside it.
A total of 100 million $PIXL tokens will be distributed to stakers through a 1 year duration LP contract (26 two week epochs) - these rewards are distributed over the course of the year via a front ended logarithmic function (note: this token yield is shared across both the 'Normal' and 'Locked' LP Protocols). Note that the reward pool may be extended after conclusion of the twelve months depending upon the econometric circumstances within the in-game token economy.
This protocol is fully flexible and has no time locked constraints. This means that you are free to withdraw your LP tokens from the LP platform at any time you wish - however to protect the integrity of the platform and discourage botting/flash crashing, strict penalties will apply for very early withdrawals (see penalty schedule below).
Rewards generated through the protocol however are subject to a vesting schedule as described in DeFi Protocols, with long term stakers rewarded with larger percentages of unlocked $PIXL vs vested $vPIXL compared to early withdrawers - this unlock schedule is detailed below.
Long term stakers may also find that they qualify in the future for additional discretionary rewards within the Pixlverse ecosystem - maybe there's a scenario where your LP's are represented in game as 'Power Pixls' and the only way to access a specific dungeon or quest would be to have this equipped. These quests may be the only way to aquire the consumables needed in order to create unique in-game items..
The protocol is a little more complex than the $PIXL Single Sided Staking, however we'll ensure it will be incedibly easy to learn through our upcoming, beautifully designed web-based UI and abstracted smart contracts - there will also be the ability to access the protocol using your in-game avatar within the Pixlverse upon game launch.
Here is a step by step guide walking through the process on a conceptual level:
- Users will have $PIXL available in their ETH wallet - this is harvestable if you have a staked Sappy Seal, or alternatively you can obtain some via Sushiswap or other popular DEX's
- Users will have $ETH available in their ETH wallet
- Users will choose an amount of $PIXL and an equivalent amount of ETH they would like to stake to the normal LP protocol
- Users will stake this amount of $PIXL and ETH to the liquidity pool
- The smart contract will mint a PIXL/ETH LP token to the user which represents your share of the liquidity pool
- Users will stake their PIXL/ETH LP token to the staking contract
- Based on your weight of the overall amount of PIXL/ETH LP tokens staked by all users of the protocol, you will begin accruing rewards on a block by block basis
- As an example: lets assume ten users have staked PIXL/ETH LP tokens in equal amounts to the staking contract - all users will recieve 10% of each block reward over time
- As an example: lets assume two users have staked PIXL/ETH LP tokens - User A contributes 20K $PIXL/ETH and User B contributes 80K $PIXL/ETH - these users would share each block reward on a proportional basis ie User A recieves 20% and user B recieves 80% of each block reward over time
- Users can claim their rewards whenever they wanted - claimed rewards will be subject to a locking schedule based upon the block in which they choose to claim as detailed below
- the longer you wait to claim the higher the proportion of unlocked tokens recieved
- all locked $vPIXL tokens will begin converting to $PIXL at the end of the staking contract and vest linearly over 6 months following this
- At any point in time users can unstake their PIXL/ETH LP tokens from the staking protocol - all remaining accrued rewards will be claimed automatically at this point in time and a potential withdrawal fee will be applied.
- Users can then swap their PIXL/ETH LP tokens back to the liquidity pool for their share of the ETH/PIXL in the pool in return; users will also recieve a small percentage of trading fees generated within the pool
Epoch Rewards, Unlock Schedule and Penalty Profile
An epoch is a unit of time that we have designated to be roughly two weeks long (~84,000 blocks), but will vary slightly based upon the speed at which underlying blocks are mined on the Ethereum network.