🎁Vesting Rewards

Cadence Rewards provide benefits for long term users of the protocol.

Reward Options

Cadence provides two reward options:

  • Compound and Claim, accessible through our Earn Page

  • Compounding entails staking your pending Multiplier Points and Escrowed CAD rewards, augmenting your overall reward accrual.

  • Claiming your rewards triggers the transfer of pending Escrowed CAD rewards and WCanto rewards directly to your wallet.

Should you choose to compound or stake your Escrowed CAD tokens, you retain the flexibility to unstake them at any future point, facilitating the vesting process.

esCAD and Vesting

esCAD

Escrowed CAD (esCAD) can be utilized in two ways:

  1. Firstly, it can be staked for rewards, similar to regular CAD tokens, thereby enabling the holder to earn the same amount of Escrowed CAD and WCanto rewards for each staked Escrowed CAD token.

  2. Secondly, it can be vested to convert into actual CAD tokens over a period of one year.

    • However, it is important to note that the amount of CAD or CLP required to vest esCAD is unique per account and capped to the rewards obtained by that particular account.

    • Moreover, it should be kept in mind that Escrowed CAD (esCAD) is currently not intended to be transferable. Therefore, purchasing esCAD off the market or OTC is not recommended, as the tokens will not be eligible for vesting.

Vault

Escrowed CAD (esCAD) tokens can undergo conversion into CAD tokens through the vesting process, accessible on the Earn page. Initiating vesting entails reserving the average amount of CAD or CLP tokens equivalent to the generated esCAD rewards.

For instance, if a user stakes 1000 CAD and earns 100 esCAD tokens, 1000 CAD tokens will be reserved for vesting 100 esCAD tokens. Adjusting the vesting amount follows a proportional approach; if the user wants to vest 50 esCAD tokens, 500 CAD tokens will be reserved. It's crucial to recognize that these figures are illustrative, and the actual ratio may vary based on staking activity and rewards.

Unstaked esCAD tokens deposited for vesting won't earn rewards, while staked tokens reserved for vesting continue accruing rewards. The vesting process converts esCAD tokens into CAD gradually, spanning 365 days. Once converted, esCAD tokens become claimable.

If a user sells CAD or CLP tokens but later wishes to vest esCAD rewards, they must repurchase the necessary CAD or CLP tokens. CAD, esCAD, and Multiplier Points can be interchangeably utilized for the required reserve. Depositing into the vesting vault during ongoing vesting is supported.

Tokens reserved for vesting cannot be unstaked or sold. To unreserve, the "Withdraw" button on the Earn page must be used, withdrawing and unreserving all tokens while pausing vesting. Partial withdrawals are not supported. All vested esCAD tokens converted into CAD retain their status as CAD tokens.

Bonus Points

Multiplier (Bonus) Points offer rewards to long-term holders without introducing inflationary pressures. When CAD tokens are staked, Multiplier Points accrue at a constant rate of 100% APR every second. For instance, staking 1000 CAD for a year results in earning 1000 Multiplier Points. These Multiplier Points can be staked for fee rewards using the "Compound" button on the Earn page, enhancing CANTO APRs at the same rate as a standard CAD token.

Upon deciding to unstake CAD or Escrowed CAD tokens, a proportionate amount of Multiplier Points will be burned. For instance, unstaking 300 CAD from a total staked amount of 1000 CAD with 500 Multiplier Points earned leads to burning 150 Multiplier Points (300 / 1000 * 500). The burn applies to the total Multiplier Points, covering both staked and unstaked ones. To transfer staked tokens without burning Multiplier Points, utilize the Transfer button on the Earn page.

The Earn page displays the "Boost Percentage," signifying the additional boost from Multiplier Points. For example, if your total CAD and esCAD amount to $10,000 with a CANTO APR of 10%, your annualized reward is $1000. If your Multiplier Points equal 20% of the total staked CAD and esCAD, the "Boost Percentage" displayed is 20%, resulting in an extra $200 of CANTO rewards annually. The "Boost Percentage" is calculated by dividing staked Multiplier Points by the sum of staked CAD and staked esCAD, then multiplying by 100:

BoostPercentage=100×(StakedMultiplierPointsStakedCAD+StakedesCAD)BoostPercentage=100×(StakedCAD+StakedesCADStakedMultiplierPoints​)Boost Percentage=100×(Staked Multiplier PointsStaked CAD + Staked esCAD)Boost Percentage=100×(Staked CAD + Staked esCADStaked Multiplier Points​)

As an illustration, if you've staked 7.54 CAD, 2.00 esCAD, and your staked Multiplier Points total 4.5656, your "Boost Percentage" will be 47.85%:

100×(4.56567.54+2.00)=47.85100×(4.56567.54+2.00)=47.85%100×(7.54+2.004.5656​)=47.85%

Rewards TL;DR

Rewards WCANTO, esCAD, and Multiplier Points when staked

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