Tinyman Staking Program
We’re excited to announce Tinyman’s Staking Program as part of joint efforts with Algorand Foundation’s Viridis Phase II: Aeneas Liquidity Program and Tinyman.
Tinyman Staking Program will set to begin on the 10th of March and will continue until May. The total reward amount is set at 2 Million Algo for this reward round and it will be given at predetermined rates to Liquidity Contributors of specific pools, chosen by Algorand Foundation.
The target of the program is to draw as much liquidity as possible from the wider DeFi ecosystem to promote the technology of Algorand and Tinyman across the blockchain space, award our devoted liquidity contributors, and make up for the inconvenience our early adopters faced during the hack attacks of January. We are hoping the effects of increased liquidity will continue to prevail and work as a boost for the Algorand ecosystem.
The More The Merrier
The team decided to use a tiered structure to incentivize attracting liquidity by giving out more rewards per LP of higher TVL. As we hit certain Total Value Locked amounts, the rates per LP will be increased. In other words, if you are providing an LP and the TVL of your pool rises above certain amounts shown below, you will be earning more for the same dollar. With this strategy, we hope to incentivize our participants to spread the word and get more funds into the staking program.
In the beginning, we will be starting with a 10% APR for all three pools. The tier structure for all three pools is summarized below. Bear in mind that the team possesses the right to wiggle with these numbers to accommodate some unknowns like traffic, total prize distributed, and effective price of Algo.
The first targets are 5 Million USD for USDt-USDC pool and 10 Million USD for USDC-ALGO and USDt-ALGO pools. After that, the tiers are placed at 10 Million USD intervals for increased reward rates. We will be showing the “left amounts until the next tier” also on the relevant staking page.
We are going to be distributing the rewards based on daily commitments. So, all stakers that stay in these three pools for the previous 24 hours (or more) would be eligible for staking rewards. Tinyman will show the reward amounts allocated for each cycle determined according to the target APR on your staking page. If you initiate your commitment in the middle of a running staking cycle, your LP will be eligible for the next one. Each cycle will begin at midnight UTC, and you will be able to see the countdown to the next cycle on our staking page.
The calculations for the total reward amounts will be made with an estimated APR: Annual Percentage Rate at the beginning of each day. As an example, an APR of 10% would roughly translate to ~0.0274% daily earnings. Of course, increased rates of APR will also increase your daily earnings and if you re-stake them, you’ll be receiving compounded earnings.
The distribution of the rewards will be handled by the account designated by Algorand Foundation after re-verifying the eligibility of the participants. The frequency is expected to be around once a week and Tinyman will show your “rewards to be distributed” as the amount you’re expected to receive on the next payday.
Participating in Staking Cycles
Participating in the staking is fairly easy and intuitive. You only need to click the stake button on top of the page and select the pools you want to stake your funds. After that, you may simply follow through with adding liquidity and staking, so your funds can be eligible for the next cycle and Tinyman will begin tracking the relevant LP tokens in their wallets. Rest assured that the LP tokens will remain in your wallets during the staking program and you will also be able to unstake anytime you want.
When a cycle ends, Tinyman will indicate how much you are going to collect as your rewards to be distributed. Once you receive them, you may choose to re-stake your earnings by re-adding them as LP. We will announce the payments in our Discord, Reddit, and Telegram groups so you can stay updated on our channels.
A special program for users that suffered due to the attack
A lot of LPs suffered during the attacks and we are finalizing our compensation works. As a part of the compensation program, we have set aside a certain portion of the total rewards. Only hacked wallet LPs will be eligible to receive these rewards. We wish to remind you that this is not the compensation itself but a bonus on top of the compensation you will receive.
To this end, we are going to distribute an extra 5% APR to the eligible wallets that stake a minimum amount of $1000. So, if your wallet is eligible for compensation, you will have a chance to start earning back your losses when you participate in this staking program. This package’s availability is limited, so if you want to participate and claim your reward, remember to stake your LPs as early as possible!
This option will be made available shortly after the staking program starts. We’ll have updates in the upcoming weeks.
Our roadmap after the staking program launch
Tinyman’s community and team had to deal with many unexpected events which directly affected our roadmap, causing a delay for a lot of planned activities and new features. The staking program was one of the first things we were going to launch in the new year and unfortunately, it got pushed to March.
In the meantime, we launched our first NFT edition designed specifically for the Viridis Phase II: Aeneas Liquidity Program and sent it to the Meme Competition winners. These NFTs will become a part of the Tinyman ecosystem in the future. We are still working on the details of how they will be used.