Generating “real yield” by staking with Relay v2.
Everything you need to know about generating real yield with relay chain.
What is Real Yield?
What Is Real Yield and How does Relay Generate this?
“Real yield” is derived from the generation of “real” revenue, in contrast to the revenue obtained via token emissions. This means that the more revenue a crypto project generates, the more yield is paid to users and vice versa.
Typically, yield-bearing tokens derive revenue from high token emissions, which cause inflation and reduce token prices. Relay generates Real yield from capturing a percentage of actual bridge revenue and use a percentage of this yield to earn for the Relay token holders and liquidity providers on staked assets.
How does staking works?
Stable and Relay staking
On the v2 bridge, supported tokens can be staked to the bridge liquidity pools to earn yield on those deposits.
Staked RELAY will earn veRELAY tokens, which will boost the yield on staked assets.
Boost bridge liquidity provider rewards by Staking RELAY to earn veRELAY.
• Stake RELAY into the veRELAY staking contract to earn veRELAY over time.
• If you unstake any RELAY you will lose all of your accrued veRELAY.
• Claiming veRELAY will apply a boost to the APR on all bridge liquidity staking pools.
• veRELAY rewards account for 55% of the total rewards.
• The higher your veRELAY share the higher your share of the boosted rewards.
• Stakers are now incentivized to stake RELAY so they can earn more rewards.
Boost your staking rewards
Bridge liquidity provider pools have ﬁxed token emissions, shared between base rewards and veRELAY rewards. Pools have a boost factor, e.g. 1.67, which measures the total rewards available to veRELAY holders vs non-holders.
• Split of veRELAY vs base rewards are determined by a veRelayShareBp setting conﬁgured at a farm level and managed by the protocol team.
• The farm factor measures the proportion of total rewards vs the Base rewards emitted to the farm.
E.g. for a farm that rewards 60% Base + 40%veRELAY pools, the farm factor = 100/60 = 1.67X. Base APR follows regular yield farming calculations.
• Users receive a share of rewards proportional to their LP token share in the yield farm. veRELAY APR is proportional to the user factor, which is the square-root of their LP balance multiplied by veRELAY balance.
• Farm total factor is then the sum of all users’ farm factors.
With veRELAY you unlock access to 55% of the rewards that are directed to a pool.
Breaking down the veRELAY calculation
• Base Rewards account for 45% of the rewards).
• rewardsPerSecond is set by the Relay team and the same for all participants in the farm.
• User.Liquidity is the number of LP tokens that a given user has.
• pool.totalLiquidity is the sum of all user.liquidity for a given farm.
• A participant’s proportion of base rewards is user.Liquidity/pool.totalLiquidity
• veRELAY rewards account for 55%% of the rewards (veRelayShare = 55%)
• user.veRELAY is the number of veRELAY tokens that a given user has.
• Farm factor equals sqrt(user.liquidity * user.veRELAY)
• pool.totalFactor is the sum of all farm factors for everyone in a given farm.
• A participant’s % of veRELAY rewards = their percentage of pool.totalFactor
To activate the staking boosts, you ﬁrst must accrue and claim your veRELAY. You do this by staking RELAY into the veRELAY staking pool. Once you have staked RELAY you will accrue veRELAY over time and you can press claim to yield any accrued veRELAY (the generation rate and boost rate for accruing veRELAY are covered below).
Harvested veRELAY will act as a receipt and automatically apply a boost to your pools.
veRELAY is non-transferable, you cannot trade veRELAY.
If you unstake any RELAY you will lose all of your accrued veRELAY!
Accrual Speed: Base Rate
veRELAY stakers will receive veRELAY at a ﬁxed rate, up to a cap of 100x their staked RELAY.
Base Rate for veRELAY: 0.000003215020576 veRELAY per sec per RELAY.
It takes you 365 days to hit the max amount of veRELAY you can accrue.
Accrual Speed: Speed Up
veRELAY stakers can boost their veRELAY accrual rate using a speed-up mechanism.
• Speed up rate for veRELAY: 0.000006430041152 veRELAY per sec per RELAY.
• veRELAY speed up doubles the base rate (2x).
How to Activate the Speed Up
If you top-up more RELAY tokens to your existing stake, you can activate a veRELAY accrual boost.
• Top up more than 5% of your existing staked RELAY to activate this boost.
• The Speed Up mechanic is there to allow for new users to catch up with existing
Your speed boost can be monitored on the veRELAY staking page, there is a count down timeline tracking the remaining speed boost you have until you need to top-up 5% more.
The veRELAY speed up booster will last for 15 days.