Rewards
YUM Rewards provide benefits for long-term users of the protocol, these rewards come in the form of Escrowed YUM and Multiplier Points.
Compounding vs Claiming
There are two options for rewards on Earn: "Compound" and "Claim".
Compounding will stake your pending Multiplier Points and Escrowed YUM rewards, this will increase the number of rewards you receive.
Claiming will transfer any pending Escrowed YUM rewards and BERA rewards to your wallet.
If you compound or stake your Escrowed YUM tokens, you can unstake them for vesting at any time later on.
Escrowed YUM
Escrowed YUM (esYUM) can be used in two ways:
Staked for rewards similar to regular YUM tokens
Vested to become actual YUM tokens over a period of one year
Each staked Escrowed YUM token will earn the same amount of Escrowed YUM and BERA rewards as a regular YUM token.
Note that Escrowed YUM (esYUM) is not meant to be transferrable unless you are doing a complete account transfer. The amount of YUM or MGLP required to vest esYUM is unique per account and capped to the rewards received by that account. Please do not buy esYUM off the market or OTC as you will not be able to vest them.
Vesting
Escrowed YUM (esYUM) tokens can be converted into YUM tokens through vesting, this can be accessed on the Earn page.
When vesting is initiated, the average amount of YUM or MGLP tokens that were used to earn the esYUM rewards will be reserved.
For example, if you staked 1000 YUM and earned 100 esYUM tokens, then to vest 100 esYUM tokens, 1000 YUM tokens will be reserved. To vest 50 esYUM, 500 YUM tokens will be reserved. Note that this is an example and the actual ratio depends on the average staked amount and rewards earned for your account.
esYUM tokens that have been unstaked and deposited for vesting will not earn rewards. Staked tokens that are reserved for vesting will continue to earn rewards.
After initiating vesting, the esYUM tokens will be converted into YUM every second and will fully vest over 365 days. esYUM tokens that have been converted into YUM are claimable at any time.
If a user sells YUM or MGLP tokens and would like to vest their esYUM rewards, later on, they would need to re-buy the YUM or MGLP tokens. YUM, esYUM, and Multiplier Points can be used interchangeably for the required reserve amount.
Depositing into the vesting vault while existing vesting is ongoing is supported.
Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve the tokens, use the "Withdraw" button on the Earn page. Partial withdrawals are not supported so withdrawing will withdraw and unreserve all tokens as well as pause vesting. All esYUM tokens that had been vested into YUM will remain as YUM tokens.
Multiplier Points
Multiplier Points reward long-term holders without inflation.
When you stake YUM, you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 YUM staked for one year would earn 1000 Multiplier Points.
Multiplier points can be staked for fee rewards by pressing the "Compound" button on the Earn page, each multiplier point will boost BERA APRs at the same rate as a regular YUM token.
When YUM or Escrowed YUM tokens are unstaked, the proportional amount of Multiplier Points is burnt. For example, if 1000 YUM is staked and 500 Multiplier Points have been earned so far, then unstaking 300 YUM would burn 150 (300 / 1000 * 500) Multiplier Points. The burn will apply to the total amount of Multiplier Points, including both the staked and unstaked.
To transfer staked tokens without burning Multiplier Points, use the Transfer button on the Earn page.
The "Boost Percentage" shown on the Earn page shows your individual boost amount from Multiplier Points. For example, if the BERA APR is 10% and you have $10,000 worth of YUM and esYUM, then your rewards would be $1000 annualized if you additionally have several Multiplier Points equivalent to 20% of your total amount of YUM and Escrowed YUM, your "Boost Percentage" would display as 20%, and you would get an extra $200 of BERA rewards annualized.
The “Boost Percentage” is calculated from the ratio of Multiplier Points to your total amount of staked YUM. This data will show you how much more percentage of BERA reward you will earn when you stake MPs compared to when you don't.
Boost Percentage = 100 * (Staked Multiplier Points) / (Staked YUM + Staked esYUM)
An example:
100 * (4.5656) / (7.54 + 2.00) = 47.85%
The Boosted APR shows how many BERA you will earn in a year from staking MPs.
FTM Boosted APR = FTM Base APR * User's staked MPs / User's staked YUM & esYUM
Summary
A summary of rewards and mechanics:
YUM: earns BERA, esYUM, and Multiplier Points when staked
esYUM: earns BERA, esYUM, and Multiplier Points when staked
Multiplier Points: boost BERA APRs when staked
MGLP: earns BERA, esYUM, automatically staked on mint
GSLP: earns BERA, esYUM, automatically staked on mint
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