Since the advent of blockchain technology, decentralized finance has had no shortage of mathematical challenges or possible approaches. Tweaking the mathematical formula behind a curve can produce countless unique vesting curves for users to choose from, who can forecast how they want to control the stake of their sSDEX.
For staked sSDEX tokens that will be available through our upcoming claim drop, the possibilities for curves and rewards are endless. We hope to reignite the excitement of crypto staking with the applications of various mathematical curves.
Curve Implementations for sSDEX Staking
Applying a curve to the reward and penalty system of our protocol allows for an easy-to-understand visual representation of how things operate. Across time the penalties and rewards are distributed following a set curve allowing users to become gauge the potential of their stake depending on what strategic decisions they might choose to make.
Our standard reward/penalty curve follows a simple upward/downward sweep, but with staking sSDEX tokens there can be multiple opportunities found within the curve to introduce a more dynamic range for users to take control of their own stake.
For example, when a user claims their staked sSDEX tokens they can choose any number of available curves to lock in their stake, each with its own dynamics.
If a user chooses a simple sine curve consisting of three peaks throughout the predetermined vesting schedule that means there are three instances where the ROI on that stake would be the highest. Concurrently the penalty system would apply for early withdrawal of the stake meaning the final peak would yield the highest return and also the smallest penalty if the stake is removed before natural maturity.
Tweaking the mathematical formula behind a curve can produce countless unique vesting curves for users to choose from who can forecast how they want to control the stake of their sSDEX.
Depending on the independent strategy, users can choose a curve that meets their needs. If users know they won’t withdraw their stake until its natural maturity, choosing a curve that has a steep incline near the end of the term would be most advantageous. Inversely, if a user might want to withdraw their stake early they may choose a curve with a smaller yield but also a smaller penalty for their early withdrawal.
Choose Your Own Adventure
Choosing a staking curve dictates how your stake will unfold when yields will rise, and when penalties will be at their highest. The Sigma curves will act as a map through the duration of the staking period allowing users to capture an understanding at a glance. By looking at the curve chosen, users can see how many opportunities they may have to capitalize on their stake while simultaneously seeing when they would be incurring the most penalties.
Introducing curves as basic yet profoundly helpful staking navigation tools, clearly conveys what a user's stake will experience within a chosen time frame allowing for an opportunity to glimpse into the future and strategize accordingly.
Beginning with a visual representation of the staking period ahead newcomers as well as experienced users can use the visualizations to stake their crypto with a sense of what lies ahead.