Staking
KMNO Staking provides rewards for long-term users of the protocol.
By staking your KMNO, you can boost your points earnings. Over time, your staking multiplier will increase, enabling you to boost your points up to 200%.
Staking goes live upon the KMNO launch, April 30th at 12PM UTC
Staking Overview
To stake your KMNO, you can go the KMNO staking page, and click "stake". For every $1 of KMNO staked, you earn 3x points per day.
In addition, staking will instantly earn you the Base Staking Boost of 30%. Over time, your Staking Multiplier will increase as you remain staked, thus increasing your Total Staking Boost over time.
Key Values:
Base Staking Boost: 30% - Default boost earned by staking
Daily Multiplier: 0.5% - Rate by which staking boost increases per day as you remain staked
Staking Multiplier: Total multiplier you have accumulated by remaining staked over time
Total Staking Boost: Total staking boost you receive, consisting of base and multiplier
Max Boost: The maximum total boost you can accrue is 300%
See here for examples of how these boosts work in practice.
How Staking Boost Works
For every 1 KMNO staked, your Staking Boost applies to 2 of your points per day. The more points per day you earn, and the more KMNO you have staked over time, the higher your boosted points.
The formula for boosted points is as follows:
kmno_staked * 2 * total_staking_boost
For example, if you have 1000 KMNO staked, your staking boost will apply to a maximum of 2000 of your points per day.
With a 50% staking boost, you can earn a maximum of:
1000 * 2 * 50% = 1000 max additional points
The amount of points that can be boosted is capped to your points per day. Eg. in the above scenario, if a user was only earning 500 points per day, the 50% staking boost would only apply to those 500 points.
In this case, the user would earn:
500 * 50% = 250 additional points
Note that the staking boost only applies to points per day earned by having active positions in Kamino. It does not apply to your points earned from staking KMNO.
Staking Multiplier
KMNO staking is aimed at rewarding long-term users. If a user keeps the same amount staked for a year, their Staking Multiplier will be at 135%. Every day a user remains staked, their staking multiplier will increase by 0.5%
The maximum staking multiplier is 270% - which can be achieved by keeping the same amount staked for exactly two years. Additional deposits will increase the duration needed to achieve maximum boost - as explained below:
Staking Multiplier Decrease
Staking Multiplier will decrease when a user stakes more KMNO
For example:
User has 1000 KMNO staked
Staking Multiplier = 50%
User stakes an additional 2000 KMNO
New stake balance = 3000 KMNO
Their new Staking Multiplier can be calculated as:
current_staking_multiplier * (1 - additional_stake / new_stake_balance)
50% * (1 - 2000/3000) = 17%
Thus, Staking Multiplier decreases proportionally to the additional amount of KMNO staked.
Staking Scenario Examples
Scenario 1: Basic Staking Example
User A earns 1,000,000 points per day (from protocol positions + loyalty boost)
User A stakes their 200,000 KMNO
KMNO Price = $0.2
The moment User A stakes their KMNO, they earn the 30% Base Staking Boost.
This boost applies to a maximum 200,000 * 2 = 400,000 points per day (ppd)
Thus, max Staking Points Boost: 400,000 * 30% = 120,000 ppd
In addition, User A also earns 3x points per day for every USD of KMNO staked
200,000 * 0.2 * 3 = 120,000 ppd
Total Points Per Day
Thus, the moment User A stakes their 200,000 KMNO, they earn a total 240,000 ppd - and a total 1,240,000 ppd
Scenario 2: Continuous Staking For 90 Days
User A earns 1,000,000 points per day (from protocol positions + loyalty boost)
User A has kept his 200,000 KMNO staked for 90 days
KMNO price is now at $0.25
User A has staked for 90 days, with the Daily Multiplier of 0.5%, User A now has a Staking Multiplier of 45%.
Combined with the 30% Base Staking Boost, User A is now earning a Total Staking Boost of 30 + 45 = 75%
This boost applies to a maximum 200,000 * 2 = 400,000 points per day (ppd)
Thus, max Staking Points Boost: 400,000 * 75% = 300,000 ppd
In addition, User A earns 3x points per USD of KMNO Staked: 200,000 * 0.25 * 3 = 150,000 ppd
Total Points Per Day
Thus, after remaining staked for 90 days, User A earns a total 450,000 additional ppd - and a total 1,450,000 ppd
Scenario 3: Staking Additional KMNO
User A decides he wants to maximize his staking boost, so he buys more KMNO from the market and wants to stake it
User A earns 1,000,000 ppd (from protocol positions + loyalty boost)
User A has kept his 200,000 KMNO staked for 90 days
Because of staking, User A has accrued Staking Multiplier of 45%
KMNO price is now at $0.25
User A buys another 100,000 KMNO and stakes it
Based on Scenario #2 above, User A is currently earning 1,450,000 ppd
Additional Stake
With the additional stake, their Staking Multiplier will decrease as follows:
current_staking_multiplier * (1 - additional_stake / new_stake_balance)
So: 0.45 * (1 - 100,000 / 300,000) = 0.3 = 30%
Due to the additional stake, the Staking Multiplier decreased from 45% -> 30%
As result, total staking boost is now 30% + 30% = 60%
Additional Stake Impact
The total KMNO staked is now 300,000, thus the staking boost applies to a maximum 600,000 points per day: 600,000 * 0.6 = 360,000 ppd
In addition, User A earn 3x points per USD of KMNO staked = 300,000 * 0.25 * 0.3 = 225,000 ppd
Total Points Per Day
Thus, after remaining staked for 90 days, then staking an additional 100,000 KMNO, User A earns a total 825,000 additional ppd - and a total 1,825,000 ppd
Scenario 4: Staking for Maximum Boost
User A now remains staked for another 480 days, and is now earning the maximum boost of 300%
User A earns 1,000,000 ppd (from protocol positions + loyalty boost)
User A has kept his 300,000 KMNO staked for 480 days
Because of staking, User A has accrued the max multiplier of 270%
KMNO price is at $0.25
This boost applies to a maximum 300,000 * 2 = 600,000 ppd
Thus, max Staking Points Boost: 600,000 * 300% = 1,800,000 ppd
In addition, User A earns 3x points per USD of KMNO Staked: 300,000 * 0.25 * 3 = 225,000 ppd
Total Points Per Day
Thus, after achieving the maximum boost, User A earns a total 2,025,000 additional ppd - and a total 3,025,000 ppd
Scenario 5: Withdrawing & Staking More Than Points Earning
User A has 300,000 KMNO staked, now decides to withdraw 200,000 KMNO
User A earns 1,000,000 ppd (from protocol positions + loyalty boost)
User A now has 100,000 KMNO stake remaining
KMNO price is at $0.25
Unstaking does not impact Staking Multiplier, so User A still has a Total Staking Boost of 300%
This boost applies to a maximum 100,000 * 2 = 200,000 ppd
Thus, max Staking Points Boost: 200,000 * 300% = 600,000 ppd
In addition, User A earns 3x points per USD of KMNO Staked: 100,000 * 0.25 * 3 = 75,000 ppd
Total Points Per Day
Thus, after unstaking 200,000 KMNO, User A earns a total 675,000 additional ppd - and a total 1,675,000 ppd
Scenario 6: More KMNO Staked vs Points Per Day
What happens when a user has more KMNO staked than they are earning points per day?
User A withdraws funds. They used to earn 1,000,000 points per day, now they are earning 100,000
User A now earns 100,000 ppd (from protocol positions + loyalty boost)
User A has 100,000 KMNO stake
User A has the maximum staking boost of 300%
KMNO price is at $0.25
The staking boost applies to a maximum 100,000 * 2 = 200,000 points per day (ppd)
Thus, max Staking Points Boost: 200,000 * 300% = 600,000 ppd
However - User A is only earning 100,000 ppd
As a result, the staking boost only applies to the 100,000 points per day that User A is earning.
Thus: User A Staking Points Boost: 100,000 * 300% = 300,000 ppd
In essence, you can only boost the points that you are earning. If your amount of KMNO staked allows you to boost 200,000 points, but you are only earning 100,000 points, then only that 100,000 points will be boosted.
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