Locking ADDY + Boost System
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 Locked ADDY cannot be withdrawn until the lock has ended - it is NOT possible to pay a penalty to withdraw locked ADDY early.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.
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).
- 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.
Each BP currently doubles the ADDY earnings for $X worth of a user's stake for each vault LP pair, where X is the current price of the Adamant platform token for that chain. This increase in ADDY earnings is called the boost weight.
The boost weight is affected by 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 of other users staked in the same vault will not affect your ADDY earnings.
In order to limit inflation, there is also a cap on the maximum boost weight per BP, which is set to 50% of the emission rate of the Adamant platform token. For example, if 100 ADDY are minted for each 1 ETH generated in profit, the maximum boost weight/BP would be $50. That means even if ADDY cost more than $50, each BP would boost at most $50.
The boost formula is currently:
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.