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An epoc is defined as 8 hours. Epoc is calculated:
- Staking Rewards are distributed at the end of each epoc, by rebasing.
- Bond Vesting and Genesis Vesting are based on epoc.
- Unstaked BTCH would be claimable at the end of epoc.
The target price is always obtained from the 365 days TWAP of UNISWAP BTC / USDC pair divided by 10000.
The current market price is obtained from the Uniswap BTCH / WBTC / USDC. 24 hours TWAP Market Price will be used when rebalancing, that means, after the protocol launches, in the first 24 hours there will be no rebalancing.
Protocol treasury holds the protocol controlled assets. Protocol Controlled Liquidity is part of the protocol treasury. The protocol should own and control the majority of the liquidity (BTCH / WBTC pair) in Uniswap.
Depending on the rebalance frequency, and the Bond sales performance, the PCL will become larger and larger. In the future, some part of the PCL will be extracted to the treasury, in order to make more income for the protocol.
A vault that accumulates BTCH to support the protocol development. After the Genesis, in the time duration of 180 days (Genesis Vesting Length), a 15% (Genesis Team Percentage) of the rewards sent to the Staking Reward Pool, are minted in addition and sent to the Protocol Development Vault.
The new rewards in the Protocol Development Vault are staked automatically.
After the Genesis, in the time duration of 180 days (Genesis Vesting Length), a 30% (Genesis Reward Percentage) of the rewards sent to the Staking Reward Pool, are minted in addition and sent to the Genesis Reward Pool.
The new rewards in the Genesis Reward Pool are staked automatically.
The percentage of the difference between TWAP Market Price and the Target Price.
The Target Price of BTCH is $4.0614, the current TWAP BTC price is $60768, so the target BTC/BTCH price is 60768 / 4.0614 = 14962.32826119. TWAP Market Price of BTC/BTCH is 15212.345, the Price Gap is (15212.345 - 14962.32826119) / 14962.32826119 = 1.67097482% (18 decimals)
The Target Price of BTCH is $4.0614, the current TWAP BTC price is $60768, so the target BTC/BTCH price is 60768 / 4.0614 = 14962.32826119. TWAP Market Price of BTC/BTCH is 14000, the Price Gap is (14000 - 14962.32826119) / 14962.32826119 = -6.4316745655563% (18 decimals)
A [floor, ceiling] range. When the Price Gap is out of the range, rebalance action could be invoked by anybody.
The Stake Return Rate determines the return for stakers from the reward pool.
At the end of each epoc, a number of BTCH (= all staking BTCH * Stake Return Rate) will be deducted from the reward pool for BTCH stakers to claim.
However, even if the return number is set, if there are not enough rewards in the pool, the staker can not get the full rewards.
There is a Reward Distribute Strategy contract used to control the Stake Return Rate. Currently the strategy is as follows: When the runway time ( = BTCH left in Reward Pool / last epoc issued Reward ) is less than 15 days, the Stake Return Rate will be divided by 2.
The Stake Return Rate could also be adjusted by the Dao.
However, an adjustment of the Stake Return Rate should be longer than 45 epocs (Stake Return Adjustment Interval).
There're two ways users can get rewards:
After Rebalance, rewards will be generated and sent to Staking Reward Pool. Please refer to Rebalance in the Protocol Description section for detailed information.
When Bonds are sold, rewards will be generated and sent to Staking Reward Pool. Please refer to Bond in the Protocol Description section for detailed information.
Rewards to stakers are put into the Staking Reward Pool and vested by Epoc. At the end of epoc, rewards are rebased so compounded rewards are earned by stakers. Stakers get the rewards by using the formula:
Staker Reward = User Staked BTCH * Stake Return Rate.
Stakers get a predefined return (Stake Return Rate) based on the number of BTCH they stake, as long as there are enough rewards in the Staking Reward Pool.
In Genesis, users are using USDC to generate BTCH. The total minted BTCH is determined by the target price at the closing date of the Genesis period. The Genesis Release Portion of BTCH is automatically staked immediately after Genesis, while the left BTCH is automatically staked at the end of each Epoc following the Genesis Vesting Length.
Users can buy bonds using USDC to exchange for BTCH, at a discounted price (see Bond Discount section) to the currentTarget Price. The bought BTCH is automatically staked and gets compounded stake rewards. During the Bond Vesting Schedule, at the end of each epoc, the user can unstake the Bonded BTCH in a linear vesting way, as well as the staking yields generated by the BTCH.
An initial discount of 15% is set for the pre-bond discount. When all USDC are specialized to take part in genesis but no pre-bond, the discount is kept at 15%.
When all pre-bonds reach 50% of the total fund, the discount is changed to 0; In between, it is changed as linear.
Bond discount = (outstanding bond / BTC value in PCL) * control variable + base variable. Bond price = target price * discount;
Initially, control variable = 0.5, base variable= 0.8.
The real discount a bond buyer can get is determined by the total deposit the buyer makes. For example, the buyer sees the current discount shown on the DAPP page is 5%, after the buyer deposits 1000 USDC for the bond, the discount shown is 3%, then the real discount the buyer gets for the deposited 1000 USDC is 4%.
The protocol will have a Genesis period. During the genesis, users can deposit USDC (or Dai\USDT\ETH\WBTC and other supported Stable Coins) to mint BTCH.
In genesis, users can have two options, one is the genesis commitment and the other is pre-bond.
When users choose genesis commitment, the investment is used to buy BTCH. How much BTCH the user can get is determined by the target price at the end of the genesis period. After genesis, a 10% (Genesis Release Portion) of the BTCH is automatically staked immediately after Genesis, while the left BTCH is automatically staked at the end of each Epoc following the Genesis Vesting Length.
When users choose pre-bond, the investment is used to buy bonds. How many bonds the user can get is determined by the target price at the end of the Genesis, with a Pre-Bond discount, and the same vesting schedule as the bond. The pre-bond part will not have Genesis rewards.
Back Rate = ( BTC in Treasury + BTC in PCL) / Total Outstanding BTCH Total Outstanding BTCH refers to all the BTCH that is not controlled by PCL nor in the Treasury.
Liquidity Rate = BTCH in PCL / total Outstanding BTCH
Based on the current Stake Return Rate, and stakers total staked BTCH, it means how long (in days) could the Reward Pool issue rewards to stakers.