📈Stake to Earn

Place bets to earn

The staking system allows you to deposit a certain number of tokens and receive rewards for this. In the near future you will be able to wager your ELK, ELK/WETH LP and OG NFT to earn ELK. This process is encapsulated by three main activities:

Deposit:

This action allows you to transfer tokens from your wallet to the staking pool, which makes you eligible for reward accumulation. These rewards are determined for each block and depend on your total deposit and the collective deposit of all participants.

Withdraw:

This action facilitates the extraction of a certain amount of tokens from the staking pool.

Compound:

This feature allows you to transfer the accumulated rewards to the amount of your deposit, thereby increasing your stake.

After making a deposit, your tokens are automatically locked for 30 days. When the timer reaches zero, you have the option to withdraw funds, but you will continue to receive rewards anyway.

Making a deposit also triggers the delivery of pending rewards to your wallet. Similarly, withdrawals result in pending rewards being transferred to your wallet.

An emergency withdraw feature is available to reset the timer to zero and receive the deposited amount, excluding pending rewards. There is a 5% fee for this action. After an emergency withdrawal, pending rewards are added back to the reward pool, thereby increasing the rewards for all active stakers.

The Compound feature is recommended when the total value of pending rewards is at least three times the gas fee required for interest to accrue.

Reward distribution:

The reward distribution depends on the number of users making bets: Fewer participants result in more rewards. The more participants, the lower the reward. The block reward ratio is fixed and distributed among all participants. The staking pool is updated on every user interaction. A significant influx of staking, often from a whale, can lead to a temporary slowdown in deferred rewards. This slowdown represents a self-adjusting annual percentage yield (APY) by the rate system. APY is affected by factors such as the total deposit, the frequency of compound interest, the number of participants, and the fixed remuneration ratio.