Would you rather stake XIO and earn 12 tokens at 3% APY each or would you rather stake XIO and earn 1 token at 36%? APY?
The Blockzero Vortex is the core business model and incentive layer for the entire project. At a code level, the Vortex offers extreme flexibility in how we structure/utilize it through something called Portals.
A Portal simply allows you to stake X (input token) and receive Y (output token).
Understanding Vortex Yield
The yield (APY) for this portal is ultimately set by free-market dynamics. There are two parameters that impact APY.
- If the number of stakers (input) decrease, APY will increase (the opposite is also true)
- If the number of output tokens increase, APY will increase (the opposite is also true)
Single Portal Model
However, the innovation of the Vortex that we have not yet seen in the industry is the ability to earn multiple output tokens (Y). For example:
- Stake XIO = Earn FLASH + AQUA + UMA
While this Single Portal model is unique, it comes with two inherent tradeoffs:
- Gas: Currently, if a user stakes XIO and earns 12 different tokens, they will pay 12x the gas fee to withdraw all of them (note: user does not have to withdraw all 12 tokens and can keep their tokens in the Vortex until gas prices are lower.
- Dispersed Yield: When you earn 12 tokens at once, the yield per token will likely be lower than if you stake for just one token.
The alternative solution to the Single-Portal Model would be the Multi-Portal Model. In short, instead of staking XIO to earn yield on multiple tokens, you condense your staking power to earn a yield on one (or a smaller number) of tokens.
Here are some examples of what to expect below.
In this example, the user is making one stake and would need to make three different withdraws.
Stake 100 XIO
- 5% APY for FLASH + 5% APY for AQUA + 5% APY for UMA
In this example, the user is making two different stakes, and have two different withdraws.
Stake 25 XIO
- 7.5% FLASH
Stake 75 XIO
- 7.5% UMA
This is a Mental Mining campaign! In the comments below, let us know your prefered style of staking and why: Single vs Multi-Portals