ICSA Staking (ICSA & HDRN Yield)

The ICOSA protocol allows users to stake their ICSA to earn yield in both ICSA and HDRN from the daily Pool Payout(s). The ICSA staking pool calculates the global daily Pool Payout for ICSA yield based on the previous day’s total amount of HDRN burned divided by the HEX Share Rate. The HDRN burning can come from HDRN Liquidation Auctions, HDRN Advance Repayments or from users burning their own HDRN using the Proof of Benevolence function.

Pool Payout Calculation for ICSA Yield:

DailyHDRNBurned / HexShareRate = DailyPoolPayout

A particular staker’s daily ICSA yield is calculated based on that user’s share of the total staking pool. For example: If a particular user has a 1% share of the total staking pool and the daily Pool Payout for that day is 100 ICSA, that user will earn 1 ICSA yield. This yield will accrue daily until the user chooses to end the stake, at which point the yield will be Minted and the stake principal + yield will be sent to the user’s wallet.

The ICSA staking pool calculates the global daily Pool Payout for HDRN yield based on the previous day’s total amount of HDRN Borrowed from HSI’s sold to ICOSA contract using the HSI Buy-Back function.

Pool Payout Calculation for HDRN Yield:

(DailyHDRNBorrowed) = DailyPoolPayout

A particular staker’s daily HDRN yield is calculated based on that user’s share of the total staking pool. For example: If a particular user has a 1% share of the total staking pool and the daily Pool Payout for that day is 100 HDRN, that user will earn 1 HDRN yield. This yield will accrue daily until the user chooses to end the stake, at which point the yield will be Minted and the stake principal + yield will be sent to the user’s wallet.

There are minimum stake lengths which use a bonding curve to calculate a particular stake’s minimum length when a stake is started based on the stake size. There are also stake bonuses on ICSA yield which are calculated based on a stake’s position in the bonding curve when a stake is ended.

Whale | Stake Size >=1% of ICSA Supply

Minimum Stake Length: 360 days - 20% bonus on yield

Shark | Stake Size >= 0.1% of ICSA Supply

Minimum stake length: 270 days - 15% bonus on yield

Dolphin | Stake Size >= 0.01 % of ICSA Supply

Minimum stake length: 180 days - 10% bonus on yield

Squid | Stake Size >= 0.001% of ICSA Supply

Minimum stake length: 90 days - 5% bonus on yield

All Other Stake Sizes

Minimum stake length: 30 days - no bonus on yield

Each wallet address can have one singular ICSA stake which users can add more ICSA to if and when they choose to, with no limit to the amount of times a particular stake can be added to. If a user chooses to add more ICSA to their stake, the minimum stake lengths are recalculated based on the stake’s new position in the bonding curve and reset to Day 0 as a starting point.

There are no set stake lengths, no maximum stake lengths and users can end a stake at any time. If the stake is ended during the minimum stake length period, the stake will incur a penalty of both principal and yield on a percentage basis of how many days are left. Example: A stake with a minimum stake length of 90 days that is ended after 81 days would be 90% complete and would therefore incur a 10% penalty of both principal and yield.

Early End Stake Penalties:

HDRN | 50% of the penalty is burned - 50% is put into the ICSA staking pool

ICSA | Distributed to all pools