FAQs.

The DBR is short for Duration Bonus Rate which is part of the mining rate reward calculation that increases the reward per second of commitment time of your Vault. It works like this: instead of taking the rate X number of seconds in the commitment, the rate is exponentially raised based on the number of seconds in the commitment. In other words, longer commitments actually pay better than shorter commitments instead of just adding up the rate for all the seconds as we’ve seen in other protocols. This

Base Interest Rate:

The base interest rate is a fundamental component of the VaultX platform’s interest calculation, playing a key role in determining the returns from staking. This rate is intricately designed to adjust based on the circulating supply of VaultX tokens in the ecosystem, thus ensuring a dynamic and adaptive staking model.

The calculation involves a number of steps:

1. Total Supply and Locked Supply

    The system first identifies the total supply of VaultX tokens and the amount that is currently locked within the contract. The total supply is obtained directly from the VaultX token contract. The locked supply is the amount of VaultX tokens currently held by the contract, which represents the tokens that are currently staked.

2. Circulating Supply

    The circulating supply is calculated by subtracting the locked supply from the total supply. This represents the VaultX tokens available in the open market.

3. Circulating Ratio

   This ratio represents the proportion of VaultX tokens currently in circulation relative to the total supply. It is expressed in basis points (bps), where 1 basis point is equal to 0.01%. For example, if 50% of the total VaultX tokens are in circulation,
   then the circulating ratio is 5000 bps.

4. Base Interest Rate Calculation :

Lower Limit: If the circulating ratio is less than or equal to a predetermined minimum, the base interest rate is set to the minimum base interest rate defined by the system.

Upper Limit: If the circulating ratio is above the minimum but below or equal to 100% (i.e., all tokens are in circulation), a decrease factor is calculated. This factor is the product of the base interest rate and the difference between the maximum basis points (10000) and the circulating ratio. This product is then divided by the difference between the maximum basis points (10000) and the minimum circulating ratio. The base interest rate is then decreased by this factor.

Stake Duration: The base interest rate is then multiplied by the stake duration in seconds and divided by the total seconds in a year (31,536,000 seconds for a non-leap year). This annualizes the interest rate, providing a yearly return rate based on the staking period.

The final result is the base interest rate for the stake. It adapts to the circulating supply of VaultX tokens and the duration of the stake, promoting a dynamic, market-responsive model for staking returns.

By tying the base interest rate to the circulating supply, the system incentivizes users to stake their tokens, as more circulating tokens mean lower base interest rates. Similarly, the dependence on stake duration motivates longer-term staking, as users gain more by staking for longer periods.

Total supply

The Total Supply at the time of contract creation is 100 Billion VaultX tokens. The total supply can deflate or inflate based on users’ interactions with the protocol. The total increase or decrease in supply (Inflation or deflation) is limited by our Base rate and Duration Bonus Rate reward algorithms.

CryptoVault Utility NFTs

CryptoVaults are Utility NFTs allowing users to mine their own rewards. When a user stakes using VaultX, a CryptoVault Utility NFT is created containing the staked tokens.  NFT is a liquid staking asset and can be redeployed in other cryptocurrency protocols.

Liquid staking derivatives represent a user’s staked assets via another ERC-20 or the VaultX ERC-721 Utility NFT way. These tokens can be used in a variety DeFi protocols, enabling them to earn an additional yield on top of their staking rewards.

Yes, CryptoVaults are a type of Liquid staking derivative. CryptoVaults are interoperable with any EVM-compatible protocol.

CryptoVault holders instantly gain access to the custom portfolio analytics dashboard, made to track P/E, ROI, and Trends. The dashboard is a suite of tools to help you make the best decisions in crypto.

A LuckyVault NFT is any vault ID number ENDING in 7,77 or 777. Claim a bonus from the prize pool for minting one.

Early termination fees are proportioned to the LuckyVault prize pool and along with the VaultX treasury established to cover operational expenses.

CryptoVault Liquid staking derivatives can be used across a growing ERC-721 Ecosystem. Protocols such as Neonrain, NFTfi, or Opensea. They can be used as a collateral asset in many other DeFi protocols for lending, borrowing, or hedging assets.

There are no platform fees for using the protocol. However, if a user chooses to terminate their CryptoVault before the maturity date an early termination fee is assessed. Termination fees range based on how many days of the stake you’ve completed divided by the total commitment time.