StakeVista Model

Core Algorithms in Staking

StakeVista’s staking system is built upon advanced mathematical models designed to ensure fair distribution of rewards while maximizing user participation and profitability. In this section, we’ll explore the incremental distribution model, reward calculation formulas, and security mechanisms in detail.

Incremental Reward Distribution Model

In StakeVista, an incremental distribution model is employed to calculate user rewards. This model takes into account both the amount staked by the user and the duration of the stake, ensuring that rewards are distributed fairly and accurately.

Mathematical Representation:

Reward=lp×(En−E0)\text{Reward} = \text{lp} \times (E_n - E_0)Reward=lp×(En​−E0​)

• lp: The number of LP tokens (Liquidity Provider tokens) held by the user.

• E_n: The current Euler increment value, calculated after the nth interaction (such as a trade or staking event).

• E_0: The Euler increment value at the time the user initially staked their tokens.

Calculation of Euler Increment Values:

En+1=En+fnSE_{n+1} = E_n + \frac{f_n}{S}En+1​=En​+Sfn​​

• E_{n+1}: The Euler increment value for the next calculation.

• E_n: The current Euler increment value.

• f_n: The fee generated by the current transaction, calculated in ETH.

• S: The total supply of LP tokens at the time of calculation.

Explanation:

This formula illustrates that each time a transaction occurs, a certain amount of ETH fees (f_n) is generated and distributed proportionally among all liquidity providers. The distribution is based on each liquidity provider's share of LP tokens relative to the total supply (S). This recursive formula ensures accurate calculation of each liquidity provider's entitled rewards.

Calculation of Rewards for Liquidity Providers

When a user wishes to claim their rewards, the system calculates the amount based on the current Euler increment value and the value recorded when the user first staked their tokens.

Formula:

Reward=lp×(En−E0)\text{Reward} = \text{lp} \times (E_n - E_0)Reward=lp×(En​−E0​)

This formula means that the user's staked amount is multiplied by the difference in Euler increment values during the staking period, which determines the rewards accumulated during that period.

Security and Risk Management Mechanisms

To ensure the security of user assets, StakeVista’s smart contracts incorporate the following mechanisms:

Time Lock Mechanism:

• The time lock mechanism ensures that any changes to critical system parameters must undergo a delay before taking effect. This provides time for review and feedback from users and the community, preventing unauthorized or sudden changes.

• Mathematical Representation: Teffective=Tcurrent+ΔTT_{\text{effective}} = T_{\text{current}} + \Delta TTeffective​=Tcurrent​+ΔT

• T_{\text{effective}}: The time when the changes become effective.

• T_{\text{current}}: The current time when the changes are proposed.

• \Delta T: The duration of the time lock, often measured in block time.

Multi-Signature Wallets:

• All critical operations require signatures from multiple signatories before execution. This mechanism prevents single-point failures and ensures that all operations undergo thorough review.

Regular Audits:

• StakeVista’s smart contracts undergo regular third-party audits to ensure code security and vulnerability-free performance. These audits are conducted by top security firms to detect and fix potential vulnerabilities.

Distribution and Claiming of Rewards

The distribution of rewards for each user is automatically calculated based on the above formulas. When a user requests to claim their rewards, the system calculates the appropriate ETH rewards based on their staked amount and the difference in Euler increment values, and the ETH is immediately transferred to the user’s wallet.