Introducing A New Staking System

In this article, we will discuss:

• New staking pools system: Sublight Pool and Warp Speed Pool
• ICARUS Generators and how to use them
• ICARUS Notes and what you can do with these NFTs

So buckle up your seatbelts and get ready to learn about a new staking system.

The beginning of time (TL;DR)

Destiny Denizens will be able to stake in two different rewards pools. The first pool will get 20% of FTL emissions, and the second one will get 80%. The 20% Pool is named Sublight Pool and the 80% Pool is named Warp Speed Pool.

Quick Facts About Warp Speed Pool

• Access to Warp Speed Pool requires Destiny Denizens to WRAP their FTLs into ICARUS, and then lock the ICARUS in a vault for a minimum of 2 weeks. We call these Icarus generators.
• Rewards from Warp Speed Pool are claimable at the end of each epoch (the 8-hour rebasing period). Whereas Sublight Pool emissions are paid in FTL, Warp Speed Pool emissions are in ICARUS. Remember, ICARUS’s value is FTL’s value * index, so the emission token doesn’t change the amount of reward.
• Once claimed, you can relock the ICARUS in Warp Speed Pool for higher rewards.
• Locked ICARUSs are locked in a non-custodial vault (ICARUS generator) registered as an NFT that you will be able to transfer, sell, or buy as any other NFT on OpenSea or on Destiny’s NFT marketplace.

Quick Facts About Sublight Pool

• Sublight Pool will receive 20% of rebase emissions.
• The reward token will be in FTL.
• There is no locking mechanism, which means you can stake and unstake your tokens as often as you want.

Why do we need a new staking system?

Two main problems:

1. The first problem is Bond Flipping. This happens when a Destiny Denizen unstakes their FTLs, sells them, and then bonds with the tokens obtained from the sale. For example, Eli is earning 12% on his 5-day ROI by staking. He sees a BUSD (4,4) Bond that guarantees 18% 5-day ROI. So, Eli unstakes his FTLs, sells for BUSD and then buys the BUSD (4,4) Bond. Now, Eli is earning 6% percent more than just staking. This is detrimental to the Destiny ecosystem because it negatively affects the price of FTLs and indirectly lowers the runway.
2. The second problem is Rebase Sniping. Some Killer Whales could benefit from the rebase system to collect FTLs while not staking for the entire duration of each epoch. This is also affecting other similar projects and is rewarding behavior that doesn’t align with our community’s values.

In response to these issues, our team devised an awesome new system which honors all investment strategies, while prioritizing long-term staking and (3,3) attitudes.

Introducing ICARUS generators

ICARUS generators are personal vaults for long-term staking. To stake in Warp Speed Pool, you must lock your ICARUSs into a generator.

When you deposit your ICARUSs into a generator, you will be able to select the lock period from 2 weeks to 6 months.

Each generator will also receive a reward boost, depending on the lock-up period you select: the longer the lock-up, the bigger the boost!

Note: if the current treasury runway is shorter in duration than the maximum lock-up period option with a vote by the DAO, a reduction of emissions can be made to increase the runway over time.

Reward Allocation

As stated in the Quick Facts on both Sublight Pool and Warp Speed Pool, the emissions are spread between two pools.

Sublight Pool is where Destiny Denizens can stake their FTL or wrap/unwrap to ICARUS without lock-ups. Sublight Pool will receive 20% of the emissions. The rewards are FTLs.

Warp Speed Pool requires Destiny Denizens to lock their ICARUSs in generators. The rewards from Warp Speed Pool are ICARUSs. Destiny Denizens are rewarded ICARUSs based on their percentage of Total Locked ICARUSs in Warp Speed Pool. If only one person staked, they would receive 100% of the emission; if your ICARUSs compose 1% of total ICARUSs locked, you receive 1% of the total emission.

Additionally, you get boosted rewards paid in ICARUSs. Remember that the total amount you will receive is the number of ICARUSs you locked multiplied by the boost granted by the lock-up duration.

All rewards from Warp Speed Pool must be claimed in Sublight Pool. These ICARUS rewards are not locked and you can claim them after each epoch. With your new ICARUS, you can either unwrap and stake as sFTL in Sublight Pool, unwrap and sell your FTLs, or add them back to Warp Speed Pool.

At the end of your generator’s lock-up period, your ICARUSs are removed and can be claimed in Sublight Pool.

Example

Here is an example of what happens at the end of 1 epoch for three different Destiny Denizens:

• ELI has 10 sFTL in Sublight Pool
• JACK has 1 ICARUS locked in Warp Speed Pool for 2 weeks with a boost of (x 1)
• MARY has 1 ICARUS locked in Warp Speed Pool for 6 months with a boost of (x 2)

Let’s assume that the current index is 1 ICARUS = 10 sFTL, and that there are 15 FTLS to be allocated in total.

• Sublight Pool’s staking reward is 20% of the total amount of distributable FTLs, which is 3 FTLs. (20% of 15 FTLs is 3 FTLs)
• Warp Speed Pool receives 80% of the emission, which is 12 FTLs. (80% of 15 FTLs is 12 FTLs)
• Let’s also assume that there are only our 3 Destiny Denizens qualified for the rewards. Remember, allocation of rewards is dependent on emission total and how many Destiny Denizens are receiving those emissions. If only on person staked, they would receive 100% of the emission.

ELI has staked 10 sFTL in Sublight Pool, while JACK and MARY have locked 1 ICARUS each in Warp Speed Pool. They each receive 1 FTL from Sublight Pool as normal staking rewards, but JACK and MARY get generator rewards in addition to the normal staking rewards.

JACK has the equivalent of 1 ICARUS, while MARY has the equivalent of 2 ICARUSs because she locked them longer. Hence, JACK will receive 0.4 ICARUS (the equivalent of 4 sFTLs) and MARY will get 0.8 ICARUS (the equivalent of 8 sFTLs).

As a recap, even if the 3 Destiny Denizens have the same starting value of 10 FTLs,

• ELI received 1 FTL
• JACK received the equivalent of 5 FTLs
• MARY received the equivalent of 9 FTLs

What are ICARUS Notes?

Once you lock your ICARUSs into a generator to get higher rewards, you will receive a ICARUS Note, a visual reminder that you own a ICARUS generator. A ICARUS Note is an NFT that is minted as you lock your ICARUS

Note: This NFT is very important. It’s the receipt for your ICARUS generator, and is required if you want to claim ICARUS rewards from the associated ICARUS generator. However, because it’s an NFT, it means you can also transfer it to another Destiny Denizen, or sell it on NFT marketplaces like OpenSea. The Destiny Denizen who receives/buys a ICARUS Note will be able to claim the rewards from the generator, as well as receive the ICARUS once the lock expires.

Managing your ICARUS Notes

You will receive a ICARUS Note as soon as you lock your ICARUSs into a generator. This will qualify you for ICARUS rewards. If you want to lock your ICARUS rewards back into Warp Speed Pool, you have several choices:

• Add more ICARUSs to one of your ICARUS generators. ICARUS generators are defined by their lock duration, so you will not be able to change the lock of the generator to which you’re adding ICARUSs, but its expiration date will be reset and will be updated to your ICARUS Note.
• Create a new ICARUS generator with the duration you want and get a new ICARUS Note associated with it. Depending on the duration of the new generator and its associated boost, you will earn additional rewards on each rebase.

Keep in mind that ICARUSs that are not claimed are still getting rebase rewards simply because they are ICARUSs (wrapped sFTLs). You can play the (3,3) game even if you’re not locking your ICARUSs. However, you will receive less rewards if you don’t.

Other cool ideas for ICARUS Notes include gifting them to friends and family, proposing giveaways to your community, or creating amazing prizes for contests you host.

Helpful Tips and Tricks

• Rewards can be claimed after each epoch in Sublight Pool. These rewards are in ICARUS, so even if you don’t claim them, they are still reflecting the increased value of the rebases.
• Determine your strategy and use the system to benefit yourself and other Destiny Denizens! If you want to mainly (3,3), lock your ICARUS in long-term generators. Remember, you can have as many generators as you want (e.g. 2-week, 1-month, and 6-month generators).
• If you desire to Bond Flip or Snipe Rebases, that is still possible! Given the constant buying and selling those strategies require, you will likely only be playing in the 20% Pool.

Still have questions? Stop by our Discord. We are always happy to see new faces, and we’d love for you to join our community.

See you downstream Destiny Denizens!

• Discord: discord.gg/VEuQy6jnyv
• Twitter: https://twitter.com/Destiny_Finance