Explanation of system— Time-weighted Stake
In the past few days, we believe that many of our fans have already enjoyed an amazing return of Unicash, and we hope you all have gained a lot. The USDT pool APY is still over 650% !
Yes, it’s incredible. But keep calm, this is just an appetizer for a big meal.
Soon the opening of the boardroom will come. As an optimized and upgraded version, Unicash has learned lessons from BASIS, MIS and other excellent algorithmic stablecoin projects. And these improvements will likely make Unicash closer to everyone’s ideal successful algorithm stablecoin.
In order to let everyone better understand the improvements of Unicash, here I will explain it in detail:
The rewards you can get in each epoch are proportional to the time you put your UNS assets in the boardroom. No matter how many deposits and withdrawals you have in one whole epoch, only the balance after your last operation before rebase will be calculated. The time length from this operation to rebase will be the key factor of your rewards distribution.
Does it sound a bit difficult to understand? Let us look at a few examples:
Let’s say Alice deposited her 100 UNS/DAI LPs in the boardroom 8 hours before the first rebase. After receiving the first reward, she did not take out the LPs. However, she suddenly found that LP’s APY in Bank was pretty good 4 hours later. So she took LPs out. And then, she deposited the LPs again into the boardroom 10 seconds before the next rebase.
Guess how many rewards will she get? Almost 0! Yes, because there is almost no interval between the time of her last deposit operation and rebase. The reward of her first 4 hours of stake will automatically move into the treasury.
Bob also deposited the 100 UNS/DAI LPs 8 hours before the boardroom started the first time. After receiving the first reward, he only took out the rewarded UNC token and left all UNS LPs in boardroom. One more epoch passed by( 8 hours ), how many rewards will he get? 100% ! His time-weighted calculation is based on 100% of the epoch time, so he took full rewards.
The boardroom supports both UNS and UNS LP. This time-weighted stake rule applies to the UNS token as well when you put them in the boardroom.
Please note that the total rewards generated by the system will not be destroyed. Instead, all the rewards that are wasted due to user time-weighted calculations will be put into the treasury as a system reserve.
Don’t worry, these rewards for entering the treasury are not owned by someone. According to the pre-written contract, they will be used to redeem bonds after the UNC price return $1.05( the positive rebase point)*, helping the system to function smoothly. This is a very essential improvement because the system’s ability to recover from underwater will be far superior to similar projects such as BASIS and MIS.
*The positive rebase price is not fixed but decided by dynamic threshold algorithm and ranging from1.02 to 1.05.
In the future, we will write a detailed article on our improvements of the debt system. After day and night calculations and adjustment, the team has developed quite lots of weapons to avoid Unicash entering the death spiral, which trapped many other similar projects. What you need to do now is to understand the rule of time weighting and prepare your own strategy.
Good Luck, everyone.