Index Token Staking

Some index tokens (such as OG30) are stakable. When an index is comprised of assets that can be put to productive use via staking or other means, users can stake their ITs to get access to that yield.

Staking index tokens enables stakers to receive a share of the staking rewards as well as lending returns of the productive assets within a basket. Staking rewards are currently paid out over a period of 1 month and accumulate every second. There are currently no bonding and un-bonding periods associated with staking. Staking rewards are paid out in index tokens itself. This means that the value of staked index tokens against index tokens increases over time. In other words, stakers will receive more index tokens than they originally staked at the point they decide to unstake.

Staking Reward Source

The staking rewards are the result of lending, staking or other yield activity of the underlying constituents. The total revenues generated by productive constituents is shared between two entities, namely the stakers and the OpenDelta DAO. Currently 70% is distributed to stakers and 30% goes to the OpenDelta DAO. The portion dedicated to stakers is used to mint more ITs and are deposited into the staking Vault.

Reward Calculation

The staking reward is calculated as follows:

$$\text{staking\_reward\_earned} = \text{staked\_amount} \times \left( \text{reward\_per\_token}_t - \text{reward\_per\_token}_{t-1} \right)$$

where

$$\text{reward\_per\_token}_t = \text{reward\_per\_token}_{t-1} + \left( \frac{\Delta_t \times \text{reward\_rate}}{\text{total\_stake}} \right)$$

and

$$\text{reward\_rate} = \frac{\text{total\_reward\_to\_distribute}}{\text{distribution\_period}}$$