I tried to make a visual of how it works. For all daily rewards, any position is able to get the minimum reward without staking BALN for bBALN. To boost rewards up to 2.5 times, a certain amount of bBALN is needed.
The amount of bBALN needed to boost your position is dynamic (effected by your position, total value of LP/borrowed, and total bBALN).
So you may need more bBALN to boost BALN/BnUSD LP than needed for sICX/ICX LP.
@McLucks I think you are misunderstanding so let me try to clarify.
Everybody decays at the same rate, so, unless others are re-locking and you are not, your rewards will not dimish.
With no decay, a person who locked for 4 years but only has 1 day left will earn the same rewards as somebody who freshly locked for 4 years and still has the entire 4 year commitment to go. That is clearly not fair and provides no incentive to (in fact, it disincentivizes) renew the lockup until the lockup is over.
I think I am misunderstanding this the same way as mcluck.
“Everybody decays at the same rate, so, unless others are re-locking and you are not, your rewards will not dimish” -
so the idea is that everyone will be constantly re-locking their BALN tokens? how often would we need to do this?
“With no decay, a person who locked for 4 years but only has 1 day left will earn the same rewards as somebody who freshly locked for 4 years and still has the entire 4 year commitment to go. That is clearly not fair and provides no incentive to (in fact, it disincentivizes) renew the lockup until the lockup is over.”
who are you saying this is unfair to?, the person freshly locking up their tokens? this all about perspective, shouldnt we be rewarding those who have commited and seen out their 4 year lockup?
@benny_options what are the chances of this getting added to the UI? It’ll be a good visual way to keep track of staked BALN reward, just like the collateral progress bar.
Personally I think this is just an okay idea for such a new system. Down the road it is a fantastic idea. I just am not sure why we would add this kind of complexity to BALN so early.
OMM has staking rewards. Why not just simply give BALN staking rewards as well? Leave the network fees to the LP providers. There is a 3 day unstaking period that essentially already locks people in…maybe even extend this unstaking period too.
Personally I would use vBALN, but I am just looking at more of the stance of the average user, and attractiveness to the system.
To be honest I think rolling out both vBALN, and BALN staking rewards would make the entire system more attractive. With a vBALN cap there is only so much that one will lock up. With staking rewards you can add as much as you want. These two options work very well together.
I would be happy to provide a base-staking reward to bBALN holders, increasing the incentive to lock tokens beyond just being an LP. However, this should be a modest amount of inflation imo, as incentivizing revenue-generating activities should be the primary goal
I dislike inflation towards straight staking rewards, thats just taking money from yourself via inflation, to give it to yourself. Its not NEGATIVE per se, and can be good simply because for some reason so many people think its good, but its kind of weird how much people like it.
Lol totally agree here. It’s psychological. People don’t feel dilution, but they feel the free money
There is one small economical benefit though, it dilutes people that are not “long term holders” willing to lock their tokens. If everybody staked and/or LPed then yes it would be pointless.
I am just looking at this as an infancy product. To arch’s point the people like it. The average user is going to collect rewards, and stake it. Like the airdip it just gets the people on the system, and then they can learn more. It can, and should be changed down the road.
For example it is much easier helping my newbie friends on OMM. Balanced is a different ballgame. vBALN forget about it lol
I understand and feel the long term quality ICON is providing. Im kind of just seeing this through the eyes of the average user. I could care less about the airdrips, but my friends get excited. Theres something to say about that.
Gives an incentive through the first year. Makes BALN more attractive, and will give newer people more of an incentive to stake their BALN. Attempt at minimal inflation.
A bit late here, but I think I’ve misunderstood something here. So the 2.5x boost in the future once bBALN is implemented to network fees is the equivalent to the network fee % people get now? Its not someone in the future (if they locked up for 4 years) getting 2.5x what they do now? Or is the default reward cutting to 40% (for people who dont want to hodl) making up the difference for long term stakers (so that it would be a significant increase in the % of network fees gained that one does now?)
So the more BALN you lock for a longer period of time, the more network fees you get, no limit. The 2.5x boost limit doesn’t impact network fees.
However, your point stands about the BALN inflation rewards for LPs and stakers. If you have 0 bBALN, you will earn the base rewards, which will be 40% of what they are now. This results in being able to boost 2.5x (40% → 100%). This is inspired directly from CRV economics. The boost amount can be adjusted via governance.
Thanks for replying, and sorry for my late reply. You’ve explained it well, and there’s the added bonus for long term stakers that most people probably wont lock up for years at a time, and so they will either be stuck at a lower % (concentrating hodl’ers %), or may not bother staking at all, further increasing the relative gains for long term stakers beyond the 100% equivalent. I have faith in you and your team, and look forward to what’s cooking. Your response, along with some dodgy napkin math inspired me to ape into BALN, with the understanding that I will lock it away for a long time when that feature is ready to deploy.
I didn’t get to the quarter million BALN I was looking for (round numbers), but Ill be staking my BALN stack into the future, while taking a mental health break from crypto charts and volatility induced bipolarisim. I’d rather spend my time researching other Defi platforms to see what interesting things they have to offer (as research and/or inspiration for things to bring up in the forum for Balanced)