How vEmpire (VEMP) staking pool APRs work
Understanding our APRs can be somewhat difficult, so here’s an overview of how they work and the different factors that affect our APRs.
We run a set of staking pools where users can earn dual-yield on their tokens. The primary yield is sent in VEMP and the secondary yield is sent in the token staked. This gives you as the user the additional options to always exponentially increase your yields. This is done by compounding the VEMP rewards in the DDAO (VEMP staking) and then you can also compound the secondary yield back into the staking pool, to earn additional primary and secondary yield, on the secondary yield you claim in the original token staked.
This is why #COMPOUNDVEMP is all about earning interest on your interest in an ever growing circle.
The primary yield is sent every ethereum block, so approximately every 15 seconds. The secondary yield is sent whenever we make profits from the different staking pool strategies and so this yield can be sporadic and paid at random.
As an example, when you stake 1 ETH with us you will automatically receive VEMP which is distributed every ETH block. We will then use that staked ETH to purchase and monetise assets, 80% of the profits we make from that ETH will be redistributed back to stakers either by compounding within the strategy, or directly sending to the pool to pay out as claimable for stakers. The majority of the remaining 20% profits is used to buy back and burn VEMP with any additional redistributed to our DDAO.
Users have access to BUSD, ETH, SAND, MANA, BNB, STARL, APE & VEMP (DDAO) staking pools.
What determines the change in APR value
- The amount of the native token staked.
- The number of users staked in the pool.
- The price of the token staked.
- The price of VEMP.
We’ll use the ETH pool again for the example below.
How the VEMP APR is calculated
Currently (3rd November 2022), the VEMP yield on the ETH pool is circa 5%. VEMP is trading at $0.025 and ETH is $1,580. VEMP is sent per block to every pool, if the value of VEMP rises against ETH then the APR increases. This is because the user is still receiving the same amount of VEMP but the price of VEMP in USD is higher than the equivalent ETH & so the yield has increased. If the value of VEMP drops against ETH then the APR % will decrease as per the opposite of the above example.
How the ETH APR is calculated
As we generate yield on the ETH staked in our pool, we return profits back to stakers (minus the portions used to buyback and burn VEMP and redistribute to our DDAO). Distributions are not linear, and the APR is calculated as an annualised figure of the distributed ETH, compared to the total amount staked.
Each time ETH is distributed back to stakers, the APR will either rise or fall depending on the latest annualised figures.
How the calculator works
In the example above the user is working out the potential yield generated by staking 10 ETH in our pool after 1 year.
The calculator gives out two variables, the VEMP yield and the ETH yield. Currently, the ETH pool is 12.98%, therefore if you have been staking 10 ETH in the past year you’d have 1.298 ETH ($2036) available to claim.
In addition, the user can also claim 30761 VEMP ($749), which has been sent from the VEMP emissions schedule. The number $2786 is the combined value of the ETH and VEMP yield together.
Why is the APR 0?
If the staking pool is showing 0% APR for the native token staked (for example STARL, as of November 2022) it’s because we have yet to generate yield to send to the stakers. This could be because we have recently opened the pool and the assets haven’t matured yet, we have recently migrated to a new pool, or because the metaverse isn’t fully functional at that time.
If the VEMP APR is showing 0% it’s because the staking pool has been migrated to a new contract. You can find the updated pool by searching for the V2 version.
Compounding Rewards & VEMP Benefits
To compound your rewards, users can stake their primary VEMP yield. By staking VEMP in the DDAO, users will not only receive enhanced rewards but they’ll also receive voting rights and qualify for giveaways & prizes.
Secondary yield can be compounded when you stake it back into the pool, this earns you additional primary and secondary yield, on the secondary yield you just claimed.
For more information about our staking pools, head over to our docs: https://docs.v-empire.io/vempire-ddao/