Locking ADDY

Lock your ADDY to receive extra ADDY from early exit penalties and boost your vault ADDY earnings

Once you have a balance of ADDY within your wallet, either by earning it or purchasing it on Quickswap, you can choose to "lock" it for 91 days (3 months) to 1460 days (4 years). Locked ADDY cannot be withdrawn until the lock has ended - it is NOT possible to pay a penalty to withdraw locked ADDY early.

All of a user's locked ADDY in the boost contract will share the same unlock date. The unlock date cannot be decreased.

It is not possible to directly lock vested ADDY. It needs to be withdrawn first, then locked.

Benefits

Locking demonstrates a commitment to the long-term vision of Adamant. Along with receiving WMATIC performance fee dividends, users who lock ADDY receive:

  • 100% of the penalty fees paid by users who withdraw vested tokens

Distribution of exit penalty fees begins immediately when a vested user withdraws early, and are released evenly over the following seven days. ADDY earned by locking ADDY is automatically compounded into a user's locked stake and will be used to increase their boost points (see below).

  • 100% of ADDY from buybacks (Lock Plus)

Early withdrawal fees from normal vaults and a portion of the performance fee income will be used to buyback ADDY to distribute to locked ADDY stakers in the Lock Plus contract.

  • A boost to the ADDY earned by staking in normal vaults

A longer lock duration will increase the ADDY boost points (BP) obtained. One ADDY token locked for four years in the Lock Plus contract is equal to one BP. ADDY locked in the Lock Basic contract has a 50% reduced multiplier compared to the Lock Plus contract.

The amount of BP scales linearly with the lock duration. This is similar to how Curve's voting-escrowed CRV system works, where one CRV token locked for four years is equal to one veCRV.

Lock Duration

1 ADDY = X BP

4 years

1.0

3 years

0.75

2 years

0.5

1 year

0.25

91 days

0.0623

Boost Weight

Each BP currently doubles the ADDY earnings for $190 (or whatever 50% of the emission rate of ADDY is) worth of a user's stake for each vault LP pair. This increase in ADDY earnings is called the boost weight.

The boost weight is currently affected by the emission rate of ADDY, the APR of the vault, and the amount of money the user has staked in other vaults for the LP pair of that vault (i.e. the total amount the user has staked in other USDC/WETH vaults if the user is staking in a USDC/WETH vault).

The boost weight per BP is currently set to 50% of the emission rate of ADDY. This means it will decrease over time in order to limit inflation. The boost weight of other users staked in the same vault will not affect your ADDY earnings.

The boost formula is currently:

BoostWeight=BPweightPerBP/userStakeValueBoost Weight = BP * weightPerBP/ userStakeValue

The boost weight per BP is also affected by the APR of the vault (before the performance fee is applied). Users will need to lock more ADDY to increase their boost for higher APR vaults.

APR

Boost Weight Penalty

50% to 99%

-10%

100% to 199%

-20%

200% to 299%

-30%

300% to 499%

-40%

500% and above

-50%

Example scenarios can be found in Locking ADDY - Examples.

The boost formula will likely be modified in the future. There may be drastic changes made to it while the ADDY emission rate is balanced and refined. Other factors like market cap and the total supply of ADDY may eventually affect the boost formula as well.

The boost does not apply to "special" vaults like the main ADDY/WETH vault for Quickswap, as well as "degen" vaults.

Old locked ADDY in the fee distribution contract is separate from ADDY in the new boost contract. Locking ADDY in the new boost contract will not change the remaining lock time on any old locked ADDY in the fee distribution contract. Users should withdraw any ADDY that is locked in the fee distribution contract and migrate it to the new boost contract as soon as possible.